I even scored some video of the auction of the Elm St lot in Seagrove, which the high bidder took for only $65,000, if the bank approves. Sorry, that should read IF the bank approves it. After that one had such low action, they pulled the remainder, after they tried selling five lots in that area as a package. The package brought a high bid of only $30,000 per lot. They quickly closed up shop, pulling something like twenty-one properties from the auction.
You said that the place was crowded before lunch...but how many in the crowd actually put up the $10,000 and were carrying a paddle and how many were looki-lu's and camp followers?
Auctions are having a tough go of it all over. Here's a report from an auction in Sarasota on Friday:
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SARASOTA - Selling a home these days is tough. Some people try warm cookies and helium balloons
. Others give away free washers and dryers.
But what if you own million-dollar properties? The kind where you don't ask about a mortgage because there is no mortgage?
Here's the answer from a luxury real estate auction held in Sarasota Friday by SKY Sotheby's International Realty: If you want to move waterfront mansions in a hurry, it's best to settle for 40 cents to 70 cents on the dollar.
"The current market has been dysfunctional," said SKY president Chad Roffers, whose company offered up 79 homes worth about $200-million in a giant lawn tent at the private Long Boat Key Club.
"Homeowners learned what fair market value is. We had 400 buyers from four countries and 18 states. The market was here."
Homeowners also learned the limits of auctions, a method gaining favor this year to provide an amphetamine rush to a slumbering market.
About 30 of the 79 properties sold on Friday. Some were auctioned, but required a minimum bid, while others were sold "absolute" - best offer takes the property.
While Roffers proclaimed the day a triumph, none of the three Pinellas and Hillsborough County properties on the block ever passed Go.
One 5,200-square-foot waterfront house at 6161 51st St. in Bayway Isles in St. Petersburg, originally listed for sale at $2.4-million, couldn't rustle up a minimum $800,000 bid.
Another of the higher-end waterfront properties, listed at $11.9-million on Longboat Key's Gulf of Mexico Drive, also failed to sell.
Considering their ability to toss around tens of millions of dollars, many of the buyers were a secretive lot. Participants paid a $10,000 deposit just to win use of a blue bidder's paddle. If they won, they had to write a check for 10 percent of the purchase price on the spot.
"It's the aftermath of irrational exuberance," said one anonymous millionaire with a British accent from Southeast Asia who - no doubt enjoying the weak U.S. dollar bargain effect for foreign buyers - scooped up four properties for about half their recent value.
His son chimed in: "This is a market wake-up call. Forty to 50 cents on the dollar: I think this is the new reality."
Despite the bargains, the auction set a record for a single home sale in Sarasota.
It was the $14-million sale of an estate called Sugar Bay on Casey Key. The castle-like mansion was built of imported South American coral stone and came with a guest house and 200 feet of beach. But even
that was originally listed for $20-million.
Trophy homes like Sugar Bay, those with special locations and attributes, outperformed. Another such winner was a three-story Georgian mansion of 11,000 square feet in Osprey. A bidding war erupted over the house, which sold for $6-million.
The losing bidder had been eyeing the house for two years, but never pulled the trigger on a deal.
"That one I really wanted. It's just bad luck," he said, hugged his friends goodbye and tossed his bidder's paddle in the trash.
Auctioneer Daniel DeCaro, who's done 40 luxury real estate auctions so far this year, mostly in Florida's hard-pressed market,
spent most of the four-hour auction trying to flog interest in the properties that didn't sell.
A house in Apollo Beach's MiraBay was one such no-sell. It was originally listed for $1.25-million but couldn't attract an acceptable opening bid.
"Five hundred!" DeCaro bellowed from the stage in the auction tent, seeking half-a-million dollars for the MiraBay. "Four hundred to get it started? Four hundred, anybody?"
By the end of the auction, interest had waned to a trickle.
No-sale followed no-sale. Blue bottles of Saratoga spring water littered the floor along with glossy auction booklets.
"Looks like there's a lot of money in this auditorium," DeCaro told a dwindling crowd. "But you guys aren't spending it."
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I guess these auctions are serving a purpose--they're letting the sellers who are setting "minimum reserves" know what the market price
ain't.
.