Upcoming auction

So this Saturday, the Beacon is auctioning off it's remaining units.

What does this mean? It means after trying to sell it's 300 units in it's first two buildings for 3 years, they still have about 45 units that they haven't sold yet. And Now they're going to try to sell these units at auction. One bedrooms start at $150k, two bedrooms start at $250k. Not a bad deal since one bedrooms used to start at $330k. And when I was viewing them at the beginning of my search, I was looking and considering private resales at $280k. Now it comes down to how much everyone else is willing to pay.

How the auction works: they'll start with all of the 2 bedrooms. They will start the bidding at $250k. Whoever wins gets to pick which unit they want to buy. Then you start bidding again. Winner #2 gets to pick out of the left over units. When the 2 bedrooms are all gone, or when the developer decides to stop the 2 bedroom auction, they will start the 1 bedrooms. Again the developer has a choice to end the 1 bedroom auction whenever they decide. However, they have promised to sell at least 12 units regardless of price. Which means if the bids are too low, the developer can stop at 12 units. But according to the auctioner, most of their more recent auctions have sold all of the units.

Interestingly, the auctioner also said that the auction prices fluctuate a lot too. Like, the sold prices would roller coaster up and down. This didn't make much sense to me... If the winner of the first round gets the nicest unit, wouldn't you go up to your limit on the first bid? Like there are some amazing units with complete views of manhattan and the statue of liberty while others look into other buildings. I would assume that the units with views would go first for the most and the ones at the end went for the least... I guess this is because people are irrational and maybe in the middle, there'll be a guy who goes "omg I'm not going to get a unit." and then ups the bid? I don't know.

Anyhow for preparation for this auction, I've had to make a number of visits to the complex to see all the units, prioritize them, and decide what would be a reasonable price. It's actually been quite frustrating because most units wouldn't be available to see every weekend because there would be tenants. And the building is only open for two hours each Saturday and Sunday... But it's all coming together!!




-- Post From My iPhone