• Trouble logging in? Send us a message with your username and/or email address for help.
  • Hello all! We will be performing a website & forum update soon. You may get logged out so now is the time to make sure your email address in your account is correct - go to your account to check it and update it now. Send us a message with your username and/or email address if you need help.

Ocean Reef Absolute Auction Results

New posts
Ocean Reef Auction . . . Really?

I don?t know how anyone gets away with calling this an ?Absolute Auction of 31 Condos? at Ocean Reef. This is the third time they have done this in Panama City Beach and I honestly don?t know how they get away with it. They auction off one or two condos, and then cancel the auction. They didn?t auction off 31 condos. The auctioned off three condos and then canceled the auction. Then they announce that you can buy condos at the price the last unit sold for. How is that an absolute auction of 31 condos?
 
Michael C:

Not sure where you got your information, but 35 units sold for a total of $8.84MM. The four bedroom units sold between $209.69 and $233.75/sq. ft. after including the 10% buyer premium. The two bedroom units sold at $196.77/ sq. ft. after adding the buyer premium.

IMO, these prices are attractive and I would bet you could cash flow these units while awaiting the return of better days.

Little Fish
 
I think his point was that "sold" does not equal "auctioned off". Based on the description of activities in this thread, it would appear that the units sold after the first few actual auctions were not placed up for sale to the highest bidder as one would expect at an absolute auction. They were simply sold at a set price (maybe a good price - I'm not arguing that).
 
from the auction blog linked in the first post said:
"We started out at 500,000 for the four-bedrooms and found our way to an opening bid of $300,000 in short order. The first unit sold for $340,000 after the bidding was complete. They then announced that they would auction off one more. The bidding started again at $300,000 and sold for $305,000....

On to the two-bedrooms. The first one opened at $200,000 and may have set the world record for longest time taken to get a second bid of $205,000. The first unit officially sold and the auctioneer announced that this was the last two-bedroom condo to be auctioned and the developer would not sell for less than the $205,000....

The final results won't be known for another 45 days. There is usually some fall out of condominium buyers during the condominium documentation review period...."
Click to expand...

As Michael C wrote, only three units were auctioned "absolute," regardless of price, and as the blogger noted, they aren't actually "sold," yet.

Yes, it is great to see that the units sold, but it would be even better if they didn't stretch the truth. The truth is that none have sold, yet. They are simply under contract, which in real estate terms would me they are "contingent" or "pending." Let's hope they stick and come up with a real "sold" later.
 
Ocean Reef Auction . . . Really?

gardening1970 is correct in the point I was trying to make. The Ocean Reef Condos that went under contract may have been a direct result of the auction, but were not actually auctioned off. All of the marketing material stated that 31 condos at Ocean Reef would be put up for absolute auction. They canceled the auction after the third condo was auctioned off. Then they told everyone they could buy condos for the price the units just auctioned for. That is not selling ?31 units at absolute auction?. They did the same thing at Palazzo Auction. They didn?t auction off all of those units.
 
spin it however you want. the bottom line is they put a lot of units under contract. that is not a bad thing in today's market. They found out what the market will pay and adjusted the selling price to the actual market.
 
Does anyone think the bank/owners, etc. didn't have bidders salted in the audience to garner a bottom line acceptable bid?
 
RB said:
spin it however you want. the bottom line is they put a lot of units under contract. that is not a bad thing in today's market. They found out what the market will pay and adjusted the selling price to the actual market.
Click to expand...

I don't think this has to do anything about "spinning" anything unless, of course, you work for the auction company. Nobody has ever said that it is a bad thing that "they put a lot of units under contract." This is not the issue. The issue is deceptive advertising and rather questionable tactics by the auction company.

The facts are (no spin): 3 units sold absolute. Period. No more, no less.

Let's look at a definition of absolute auction and see if what happened with the remaining 28 units resembles its meaning:

An Absolute Auction is one in which the property is sold to the highest bidder regardless of the amount of the winning bid.

I think not?

I'd venture a guess and say that had all these units been sold as truly absolute, the $8.84M total quoted by Little Fish would have been lower.

Please feel free to enter the spin-zone.

ER
 
You must log in or register to reply here.
New posts


Sign Up for SoWal Newsletter









Share this page




                               
Back
Top