Seagrove Highlands

Interestingly enough, I went to the preview of one of the Seagrove condos being auctioned on the 10th last weekend. I was curious about the building and wanted to see the layout. This building has 16 units, ten are for sale. The units are all basically the same, but there is a $270,000 difference between lowest and highest list price. The representative from the auction group asked me what price point I was looking at, and not having thought about it I pulled a number out of nowhere that happened to be about 85% of the lowest list price. The representative sweetly suggested I instead go look at another unit they will be auctioning that day that is listed for about 5% more than the number I'd mentioned. Granted, I've only ever bought antique furniture at an auction, but wouldn't 85% of a list price stand a shot at a customary auction?

I'm confused. Are you referring to Seagrove Highlands or another auction?

The auction on March 10th.

The auction on March 10th.

O.K. The only properties I could see on that website were houses, not condos. Were you talking about the houses at Palmeira Villas?

No, it just looked like a good deal to me.

So can anyone give me the latest on Seagrove Highlands. We have been to the area and love it. Is this worth buying...I thought there were suppose to be 4 buildings and just two sit there now. Will the other 2 be built? Any realtors out there with an idea on what the auction will bring in as far as price and what is the fair market price now for a 3 bedroom / 2 bath condo at Seagrove Highlands? When we were there last summer it just seemed like WAY to much developing going on. Is there too much to support or is this price correction just on par with the rest of the country? Thanks for any help with fair price suggestions and area suggestions for Seagrove Highlands.

There is a second phase planned for Seagrove Highlands that will be completed when the market can support it. The second phase includes 2 more buildings and an additional pool. I'm not a realtor, so have no idea what a fair market price is, but I don't think anybody knows. I do know that most of the development along 30-A is coming to a stop. There is not much vacant land left that is close to the beach and there is no traffic concurrency left for major projects.

The Seagrove Highlands auction is this weekend, right? Anybody here plan on attending?

I also am familiar with the developer and I don't think he will withdraw any of his units. Nobody knows how the auction will go, but he is very realistic in his expectations and is ready to sell these units. When all is said and done, the developer has no debt on this project and, while he is sensitive to the fact that many of the original buyers were investers intending to flip (and now need to sell), he will be able to sell at a price below any of the units that are currently listed. Are you the person who has the unit listed with Garrett?

One 3 BR unit went for $290,000 + 10% fee and one 2 BR unit went for 170,000 + 10% fee Then the developer WITHDREW ALL of the other units!!!!!!!!!!!!!!!!!!!! I TOLD YOU SO!!!!!!!!!!!!!!!!!!!!! Apparently I am more familiar with the developer than you.

One 3 BR unit went for $290,000 + 10% fee and one 2 BR unit went for 170,000 + 10% fee Then the developer WITHDREW ALL of the other units!!!!!!!!!!!!!!!!!!!! I TOLD YOU SO!!!!!!!!!!!!!!!!!!!!! Apparently I am more familiar with the developer than you.

Actually, the three bedroom went for $285K + 10% premium, and TWO two bedrooms went for $170K each. There was a phone bidder that jumped in at the last minute. Still a total bust.

Actually, the three bedroom went for $285K + 10% premium, and TWO two bedrooms went for $170K each. There was a phone bidder that jumped in at the last minute. Still a total bust.

New comps in the neighborhood and several new affordable rentals available....not a total bust. ;-)

2 br went for 170 and 3 br went for 295.

I have no special insight, but I'll register a guess ...

I'll go with that range ... $212K to $295K (for the 3 bedroom units) ... assuming that at least 7 people show up that want a 3 bedroom condo 1/2 mile from the beach.

Not a bad guess, if I do say so myself.

What's this crap about withdrawing units from an absolute auction? If you have a minimum, set a reserve. Otherwise, take what is offered. I wonder how many pissed off out-of-towners you have wondering around SOWAL right now that flew in for the "absolute auction."

6 months from now when all of the Alt-A crap has hit the fan, this developer might just be kicking himself for not selling when he had the chance.

But now, the really important question ... what did they have for snacks, and what color balloons were on display?

Final notes on the auction:
1) the Developer chose an out of state auction company not Roebuck or Anderson.
2) The properties were grouped so that the bidding would start with a 3 br, then a 2br, and return to the 3br
3) the "winning bidder" was not there it was a phone bid
4) the same "winning bidder" "won" the 3 br and the 2br
5) After the dismal selling prices the developer (on the phone?) cancelled the auction BUT he offered the remaining 2br units at the auction price of $170,000 to anyone that wanted them.

My theory is that the developer was the "winning phone bidder" and that no property changed hands at the auction.
I think his bottom dollar was @ $325,000 for the 3 br and $220,00 for the 2 br. The only negative impact will be the comps for the current unit owners. BTW he advertised condo fees at $200/month - today that went up to $330.

2 br went for 170 and 3 br went for 295.

Actually, the three bedroom went for $285K + 10% premium, and TWO two bedrooms went for $170K each. There was a phone bidder that jumped in at the last minute. Still a total bust.

One 3 BR unit went for $290,000 + 10% fee and one 2 BR unit went for 170,000 + 10% fee Then the developer WITHDREW ALL of the other units!!!!!!!!!!!!!!!!!!!! I TOLD YOU SO!!!!!!!!!!!!!!!!!!!!! Apparently I am more familiar with the developer than you.

Three posts and three different prices. Are you guys sure that you attended the same auction? If so, which one of you was paying the most attention to the auctioneer?

Final notes on the auction:
1) the Developer chose an out of state auction company not Roebuck or Anderson.
2) The properties were grouped so that the bidding would start with a 3 br, then a 2br, and return to the 3br
3) the "winning bidder" was not there it was a phone bid
4) the same "winning bidder" "won" the 3 br and the 2br
5) After the dismal selling prices the developer (on the phone?) cancelled the auction BUT he offered the remaining 2br units at the auction price of $170,000 to anyone that wanted them.

My theory is that the developer was the "winning phone bidder" and that no property changed hands at the auction.
I think his bottom dollar was @ $325,000 for the 3 br and $220,00 for the 2 br. The only negative impact will be the comps for the current unit owners. BTW he advertised condo fees at $200/month - today that went up to $330.

Thanks for all the great info. A couple more questions:
Approx. how many people were there?
What was the opening bid on the 3 bedroom unit, and approx. how many bids were placed for it to get up to its sell price?

Is it even legal
- to place a phantom bid on your own property in an absolute auction?
- to withdraw items from an absolute auction?
- for the developer to raise the association fees over 50% in one move with no notice?

Thanks.

Final notes on the auction:
1) the Developer chose an out of state auction company not Roebuck or Anderson.
2) The properties were grouped so that the bidding would start with a 3 br, then a 2br, and return to the 3br
3) the "winning bidder" was not there it was a phone bid
4) the same "winning bidder" "won" the 3 br and the 2br
5) After the dismal selling prices the developer (on the phone?) cancelled the auction BUT he offered the remaining 2br units at the auction price of $170,000 to anyone that wanted them.

My theory is that the developer was the "winning phone bidder" and that no property changed hands at the auction.
I think his bottom dollar was @ $325,000 for the 3 br and $220,00 for the 2 br. The only negative impact will be the comps for the current unit owners. BTW he advertised condo fees at $200/month - today that went up to $330.

I think they advertised the HOA Fees wrong. Mine were never $200/month. I think I pay $285/month (one bedroom). Also, the gentleman that bought both units was PRESENT at the auction. There was a phone bidder that took the 2nd two bedroom unit.

The developer chose the out of state auction company because of the national exposure they have. Not that it helped in this auction (although it's a sign of the times), but they have proven results across the country and are fantastic people to do business with. Jim Sullivan, who has lived and owned and developed in this area for a long time, obviously trusts and has the confidence in National Auction Group so much that he's having them auction off several of his Heron's Watch units next month. And they sold his Gulf Front house on Chivas Lane.

Three posts and three different prices. Are you guys sure that you attended the same auction? If so, which one of you was paying the most attention to the auctioneer?

I wondered the same thing...
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Final notes on the auction:

Thanks for report, very interesting.

he offered the remaining 2br units at the auction price of $170,000 to anyone that wanted them.

So how many of the 2brs were snapped up for $170,000 out of the total offered?

BTW he advertised condo fees at $200/month - today that went up to $330.

Probably to cover the auction costs/advertising fees....adverts in WSJ don't come cheap.

I'm assuming that since your report made no mention of snacks and balloons at the auction there were none.....how "Ghetto" is that??

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I'm assuming that since your report made no mention of snacks and balloons at the auction there where none.....how "Ghetto" is that??

.[/QUOTE]

:funn: :funn: :rofl:

I'm assuming that since your report made no mention of snacks and balloons at the auction there where none.....how "Ghetto" is that??

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:funn: :funn: :rofl:[/QUOTE]

Acutally, there were snacks! Criolla's did the catering. No balloons though, only a great musician from Gulf Shores. Maybe if they served green beer since it was St. Patty's Day, people would have bid higher!

:funn: :funn: :rofl:

Acutally, there were snacks! Criolla's did the catering. No balloons though, only a great musician from Gulf Shores. Maybe if they served green beer since it was St. Patty's Day, people would have bid higher![/quote]maybe, but if a buyer is drunk, the contract may be voidable.

Acutally, there were snacks! Criolla's did the catering. No balloons though, only a great musician from Gulf Shores. Maybe if they served green beer since it was St. Patty's Day, people would have bid higher!

My, my....catering by Criolla's, live music, advertisements in the WSJ...with the reported outcome, it's probably a good thing they didn't go all out and slurge on balloons--then again, maybe the absence of balloons is the reason for the low/no bids..... ....I guess we'll never know.

(Note to Self: Check out prices on balloon futures on Monday.)


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New comps in the neighborhood and several new affordable rentals available....not a total bust. ;-)

These are not comps. They do not conform to the definition of a typical market sale that an appraiser is required by federal law to rely on.

they are comps as they show what people are willing to pay...

they are comps as they show what people are willing to pay...

:clap_1:

Plastic US Flags seem to have replaced balloons as the "attention-getter" of choice for Open Houses...and the agents aren't taking them down at the end of the day either!:nono1:

I prefer to use an assortment of pyrotechnics!!