One of the best ways for a buyer to move in on a great deal is attending Auctions. More and more developers are looking to auctions to bring out the crowds. There are two players in the Auction business here in the Panama City Beach Florida Condominiums market. Both have done fairly well, but it depends on the background on the developer...some developers have the standing power to wait for the market to come back, while others have to sell and the bank is willing to take some of the heat. Who really knows what will happen when it's all said and done but we feel the supply needs to go away!!! The auction is the quickest way to make that happen. The Panama City Real Estate market is really in need of more of this. Stay tuned to InvestSmarter.com for updates on these auctions and what is coming down the pipeline.
Daily Real Estate News September 12, 2008
Auctions Help Condo Sales Get on Track
Condo developers are turning to auctions to unload properties that won’t sell otherwise.
Jon Gollinger, co-founder of Accelerated Marketing Partners, a consulting firm that handles real estate auctions of high-end properties, says developers are grappling with how to establish prices in this declining, turbulent market.
"Why try to catch a falling knife? Let it hit the ground. That's what an auction does," he says.
"In today's market, selling the traditional way by cutting prices till you get traction is almost counterproductive," adds Charles Barrus, development director for Wood Partners, an Orlando-based developer. "An auction is transparent, and if you can live with that pricing, we found there is a big tailwind after the auction."
Greg Wohl, principal of The InVision Group LLC in Atlanta, agrees. After the credit crunch left his 147-unit project with dozens of unsold units, he held an auction in June. With careful marketing to emphasize that it wasn't a foreclosure or bankruptcy fire sale, Wohl sold 27 condos on auction and generated strong publicity.
Thanks to increased traffic in the building, he was able to sell most of the remaining condos in the weeks following the auction.
"When no one is buying anything," Wohl says, "18 post auction sales in two months is pretty darn good."
Source: The Wall Street Journal, Jonathan Karp (09/10/08)
The only real negative is that you are buying as is...you have to preview before and make your decission, plus be ready to go! There is typically a buyer's premium of 10% to the auction, so that's something to think about also....but we can help if needed so please take some time to look online at http://www.panama-city-beach-florida-condominiums.com/ for more information about what is for sale and the up coming Condo Auctions
For information on Auctions throughout Northwest Florida please visit http://www.randbcoastalrealestate.com/ for more information.
Saturday, September 13, 2008
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