Five Manhattan Properties Up For Auction Sept 15th
A: Looks like there are 24 more residential properties up for bidding over the next 3-4 weeks too. Something to keep an eye on. BidOnTheCity.com is handling the auctions.
This site and service is getting more and more press and making more and more waves as an alternative to the traditional brokerage model. Some of these properties are listed with brokers in addition to the auction, but not all of them. For example, 212 E 48th - 2B doesn't seem to be listed with any brokerage firm and is slated for auction in three days. With a starting bid of $399,000, reserve in place, I wonder how this will affect the two other 'B' line properties currently on the marketplace: 7B asking $575K and 5B asking $559K.
Here are the five properties set to be auctioned off on September 15th via BidOnTheCity.com:
Happy Bidding!
Comments (7)
These properties are still pathetically overpriced. Who would pay 600k for a 1bd at AUCTION? Wow, only about $990/square foot.....what a joke! Only a sucker would buy one of these at the "starting bid" price....try knocking 70% off and then maybe they are getting close to true value....
Posted by Jack | September 12, 2009 5:21 PM
I have to agree with Jack - while an auction format is great for lubricating distressed / illiquid markets, the starting price definitely matters. That said, there are probably still some fools who will be willing to bite at these prices.
Posted by WestSideMan | September 12, 2009 7:06 PM
It's also a reserve auction so the seller doesn't even have to sell...what a waste of time.
Posted by Jim | September 12, 2009 7:29 PM
at this early stage I think these auctions reel in buyers that think they are getting involved in some type of bank foreclosure sale
not the case as I believe all of these have a reserve, as Jim points out. I didnt have time to do an analysis on each to see how overpriced each starting bid is.
I do recall some of these auctions selling and even if reserve is met I think the seller still gets last word on accepting it. I didnt dig too deep into this new service, just wanted to point out that it seems more and more properties are trying this alternative marketing method.
When we eliminate reserve and have a real foreclosure style where highest bid gets it, then we got something worth watching. I have a feeling you will see most of those units still on the market in 2 weeks. Maybe not the W 56th studio...sold for 290K in 2004, that one might go if reserve is realistic
Posted by Noah | September 12, 2009 9:11 PM
Noah, thank you for yet another interesting post. Given the still tiny but increasing use of auctions, could you please comment or at some point write a post on how buying a NYC property at auction is different from the normal buyside process? How does the due diligence, the closing, the overall fee etc level differ? Can one legally rely on the auction house claiming that "Property will be sold free and clear of all liens, claims & encumbrances."?
Thank you
Posted by Thomas | September 14, 2009 10:38 AM
"When we eliminate reserve and have a real foreclosure style where highest bid gets it, then we got something worth watching."
Actually Noah, if I'm correct, that is not how a foreclosure auction is held. When a foreclosure is auctioned by the sheriff, if nobody pays a certain price, the bank takes the property back and lists it in the MLS as a REO. And in 95% + of cases, the bank ultimately takes the property back.
Posted by Donald | September 14, 2009 10:59 PM
We will be selling an estate property at absolute auction on November 17th in Matinecock, NY (25 minutes from NYC). The property sits on 5.33 acres, pristine condition, 5 bedrooms, 8 baths, tennis courts, pool/spa, cabana. email: pat@grandestatesauction.com Brokers welcome.
Posted by Pat Kirby | October 8, 2009 10:24 AM