One last auction planned for GrandView condos in Annapolis
The builder of a high-end condo project in Annapolis that used an auction to jump-start sales in November is planning another one to move what's left into the hands of buyers.
Sturbridge Homes, the builder, has scheduled the GrandView at Annapolis Towne Centre auction for July 24. Auctioneer Sheldon Good & Co. said the idea is to close out the project by selling everything that's not already under contract by the event -- around 25 units, give or take.
When the first auction was announced, two-thirds of the project was empty -- only 50 of the 150 condos had changed hands over the previous year and a half. Buyers purchased 33 units at the November event and then 30 more after that, counting both active contracts and settlements, said Mark Troen, chief operating officer of Sheldon Good.
(Wondering why the math isn't working out? Because more condos could sell between now and July 24, there's wiggle room between the number currently up for the sale and the 25-unit figure being advertised.)
Troen said the first auction helped set -- and put a floor under -- prices. Afterward, "They went up about 5 to 7 percent, depending on the units," he said.
Sale prices at the November auction ranged from $275,000 to $610,000, not including commissions. (For comparison's sake, the auctioneer advertised the original listing prices at $415,000 to $995,000, and the minimum starting bids were $148,500 to $308,000.)
This time, units the auctioneer says were originally priced at $514,000 to $937,900 will have minimum opening bids of 59 to 70 percent off. They're guaranteeing at least 10 will sell at that minimum price if the bids don't get any higher.
Troen said he's confident that none will be left after the auction is done. "I think the market demand is there," he said.
What do you all think of the auction method of selling higher-end product? A variety of developers have gone that route -- some more than once, such as Sturbridge -- so they must be doing the math and deciding it's a good option. Do you think buyers end up doing any better than they would have in a traditional sale?
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Comments
And this is news? NO, this is an advertisement for Annapolis' newest developers' eyesore. I hope the newspapers got paid well for this ad... And, I hope the ParoleTowncenter becomes the next development ghost town.
Posted by: Paul | June 17, 2011 9:12 AM
Now, now, Paul -- no need to impugn my integrity. An ad would have said this is a GREAT DEAL!!! and people HAD BETTER ACT FAST!!! This is just telling folks that the auction is happening because it seems worthy of noting. Auctions are one of the things that readers have asked me to write about, so I do on occasion.
If you look at my reporting on the housing market, I hope it's clear no one in the housing industry is paying my bills.
Posted by: Jamie Smith Hopkins | June 17, 2011 9:23 AM
why would you hope the Parole Center turns into a ghost town? would you rather it turn into the old parole center that went vacant for over a decade, and the largest eyesore in Annapolis? The homes may be overpriced but it doesnt need to be the doom of the enitre center.You must be the Annapolitan who wants no progress, no change, and for your pretty little town to never be anything but a speck on a map. while your on your cell phone driving in your air conditioned lexus, remember change can be a good thing.
Posted by: fred | June 17, 2011 9:34 AM
I feel lucky that I was able to buy a condo at the Nov. Towne Centre auction. The new auction will give more people the opportunity to live in this wonderful building as well as fill up the remaining units.We as homeowners welcome the auction and know it is good to have a fully occupied building.The auction is a good marketing tool in a down economy since it draws a lot of attention to Grandview which hopefully leads to more sales.
Posted by: Sharon | June 17, 2011 9:43 AM
I hope all the buyers checked their paperwork! My cousins won a lawsuit against STUBRIDGE on their condo at the town center. Sturbridge did not meet deadlines assoc. with settlement so they WON their case and got a refund. Get a good lawyer & you may not loose anything!!!
Posted by: rvnslvr | June 17, 2011 12:30 PM
Very, very, very serious question here.
Jamie, do you know if there will be free food at this auction as there was for the Pier Homes auction?
Posted by: Frequent commentor who won't use his real name on this one | June 17, 2011 2:39 PM
Hee, Frequent commentor! I don't know the answer, sorry, but it does seem to be in the same vein as the Pier Homes auction. A band, etc. On the other hand, I was at another auction of high-end condos that had a band but no food. (It's all the same to me because I don't eat on assignment.)
Posted by: Jamie Smith Hopkins | June 17, 2011 2:46 PM
High-end condo auctions have become the norm in the US. Although, I am surprised this developer chose Sheldon Good over the more pedigreed Accelerated Marketing Partners from Boston. Just an observation. I have been to both company's auctions and hands down, AMP killed it.
Posted by: Grant Hammond | June 17, 2011 9:04 PM