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Busta Hustle

Beach Fanatic
Apr 11, 2007
434
34
Re: AUCTION - Palmeira Villas of Seagrove Beach - NEW published minimum bid of $750,0

Do any of you remember the RE auctions in the early 80's? Those were generally absolute cuz some marketing genius hadn't come up with this years maybe sorta kinda wanta auction if i can get my price deal...
Can the days of absolute auctions be that far off?:dunno:
 

sberry123

Beach Comber
Mar 5, 2006
39
0
Re: AUCTION - Palmeira Villas of Seagrove Beach - NEW published minimum bid of $750,0

I guess what I don't understand is this:

If a seller is really motivated, and I mean super motivated,

And they MUST SELL,

then why wouldn't they just list their property with a Realtor at the lowest acceptable price they need?

If it's truly priced at a "Wow" price, then why would you even bother going through the complications of the auction process.

Does anyone agree with me that if it's bargain-priced to begin with, then it shouldn't need $10,000 worth of marketing?[/quote]

Yes I agree with you. I don't understand that if there is a "lowest acceptable price" why there would be a big splashy auction.

These are good auctions- Christie's, Sotheby's, courthouse steps, barns out in the country.

The real estate "auctions" are just a twist on an open house to me.



Okay, I am offering $100K for this house. This is my offer.
 

Capricious

Beach Fanatic
Jul 11, 2005
423
42
Re: AUCTION - Palmeira Villas of Seagrove Beach - NEW published minimum bid of $750,0

"..Can the days of absolute auctions be that far off?..."


You will not get an "absolute" auction while the "owner" is still
controlling the property.

You will only see that once a lender has possesion and is getting
desperate, or when a government entity (i.e. Resolution Trust Corp-
type entity) takes over the properties from a failed lender.

But since most lenders have bundled and sold loans rather than
holding them as they did in the past, there is another element of
uncertainty in the mix.

I suspect that some properties may end-up being abandoned,
literally: so many entities will have a interest in them that none
will consider it worth their while to pursue their interest.

Then they will go to tax sales.

It is going to be interesting
 

bdc63

Beach Fanatic
Jun 12, 2006
303
22
Md for now, but dreaming of SoWal
Re: AUCTION - Palmeira Villas of Seagrove Beach - NEW published minimum bid of $750,0

Since you asked:

The property was most recently listed at $899K, and now the minimum bid (with fees) that you would accept at this one day auction is a whopping 8% below that.

In my opinion, in this market that is joke. Why are you allowing these sellers to waste your time?

To answer your question, I don't believe that our time is being wasted. This property has now been marketed on a national level. This isn't an out of the line asking price by any means.

Still feel that auction wasn't a waste of your time?

I am one of these potential buyers that you all keep talking about. And I can tell you now that I am not buying a plane ticket to come down to an auction until all this nonsense stops. And buy nonsense I mean: 1). Action houses holding absolute auctions were the first condo is sold to the highest bidder and then the seller pulls the rest off the market with no sale, 2). Auction houses that allow auctions where you hear about the last minutes phone bidder, 3). Auction houses that accept too high a minimum reserve.

I know SoWal is coming off of a Seller's market of epic proportions ... but now is the time to be demanding of your sellers and create an environment of trust and good deals that truely attracts buyers. (I would think a side benefit would be that you would create credibility with sellers to, because then you would actually be selling something).
 
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jlweathers

Beach Lover
May 2, 2007
96
0
Re: AUCTION - Palmeira Villas of Seagrove Beach - NEW published minimum bid of $750,0

"..Can the days of absolute auctions be that far off?..."


But since most lenders have bundled and sold loans rather than
holding them as they did in the past, there is another element of
uncertainty in the mix.

I suspect that some properties may end-up being abandoned,
literally: so many entities will have a interest in them that none
will consider it worth their while to pursue their interest.

many of the mortgages sold are w/out recourse to the originating lender - properties will not be abandoned; someone will foreclose if need be and get their collateral, rest assured of that. lenders cannot afford to write down a loan in its entirety.
 

Beachcoma

Beach Comber
Oct 30, 2007
27
7
Re: AUCTION - Palmeira Villas of Seagrove Beach - NEW published minimum bid of $750,0

Like bdc63 I too am a potential buyer and not into any of the games played at auctions.

I have been looking for a retirement home, so right away I am not interested in a property where I will have "new neighbors" every week. That trims my market search considerably. Secondly, I know what the R.E. boom did to prices in the last 10 years, so I have a pretty good idea where they need to be to be realistic. I am sorry for the owners who paid too much at the peak of the market, but they should not expect someone else to make a similar decision and solve their problems. Now is the time to make some tough decisions and one of them may be "should I take a loss now, or wait a few more months and take a bigger loss"?

Also, hurricanes, summer crowds, constantly increasing condo. fees and taxes make it seem smarter to own a home here in a gated golf course community, and then just rent on the beach for two months in the Spring or Fall. Also, the panhandle is not below the frost line. These are some of the considerations sellers need to address when they need to sell quickly.

Not a pretty picture, but that's life in a buyers market.
 

SHELLY

SoWal Insider
Jun 13, 2005
5,775
802
Re: AUCTION - Palmeira Villas of Seagrove Beach - NEW published minimum bid of $750,0

Also, hurricanes, summer crowds, constantly increasing condo. fees and taxes make it seem smarter to own a home here in a gated golf course community, and then just rent on the beach for two months in the Spring or Fall. Also, the panhandle is not below the frost line. These are some of the considerations sellers need to address when they need to sell quickly.

Not a pretty picture, but that's life in a buyers market.

That's the biggest problem with Florida's sagging RE market....the only folks left out there with the means/credit to buy, are folks who can knowledgeably and logically crunch the numbers. Only after the numbers start making sense, will the markets begin to move in a meaningful way.

.
 
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P.A.G.

Beach Lover
Jan 9, 2007
87
0
Re: AUCTION - Palmeira Villas of Seagrove Beach - NEW published minimum bid of $750,0

This property is going to be included in our multi-property auction on Novemember 17. The PUBLISHED RESERVE for this property is now $659,000.
 

Smiling JOe

SoWal Expert
Nov 18, 2004
31,648
1,773
Re: AUCTION - Palmeira Villas of Seagrove Beach - NEW published minimum bid of $750,0

I disagree with your reasoning. Most auction companies seem to advetise for at a minimum of 45 days and they charge the seller upfront. (Find me one Realtor around here who charges the seller for the advertising up front or on top of the commissions on the back end of the sale. It doesn't happen.) Add to those 45+ days of advertising, assuming the contract is written at the auction, an additional 30 days for a closing. A seller really gains nothing, and only a minority of auctioned properties are actually selling and the seller is out of pocket for the advertising costs.
10% can be justified in that an auction typically renders a buyer quicker...so instead of putting it on the mkt for 120 days and auction may sell the property in 30 days thus saving 90 days of carry/expenses.

10% commission makes sense...but you can't auction properties in this mkt at those prices...it needs to be a WOW price and i'm not talking 10% discount from recently sold/asking...i'm talking 30%+
 

Smiling JOe

SoWal Expert
Nov 18, 2004
31,648
1,773
Re: AUCTION - Palmeira Villas of Seagrove Beach - NEW published minimum bid of $750,0

With all of this talk of "published minimum bids" and reserve prices, I get confused. Is this new reserve price an amount which the seller will absolutely agree to, or is this just a price at which he can call off the auction if this amount isn't bid?
This property is going to be included in our multi-property auction on Novemember 17. The PUBLISHED RESERVE for this property is now $659,000.
 
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