Sotheby's Auction

[Sea Sothebys]

Sotheby’s Auction March 15 on 30-A

I am truly excited to invite Brokers, Sales Associates and sellers to an orientation on how you can participate in the most prestigious auction execution in the world.

This is the first Sotheby’s auction in our area.

With an incredible database of buyers interested in exclusive Sotheby's auctions, an enormous international marketing budget, a well established brand image, this is the auction that will be successful.

With a limitation of how many offerings being accepted, I sincerely hope you will email me and let me know you will be interested in coming to the orientation.

I will have orientation dates as soon as possible, and will keep you posted on this momentous occasion.

[SHELLY]

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Got Snacks?


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[Sea Sothebys]

I knew Shelly would be the first to respond!

[Sea Sothebys]

You are right on target to assume that Sotheby's will not only host an upscale auction with a great deal of added value, but that it isn't all dependant on the brand name alone. There is an integrated marketing plan that includes all vehicles of media from internet, to direct mail. There are several publications Sotheby's will advertise in specific to this auction. A short list: Wall Street journal, The Observer Group, The Robb Report, Fortune magazine, Forbes, British Airways Impressions magazine, etc.

Of the 73 homes at the most recent Sotheby's Auction in Sarasota, 55 sold. Over 100 million in sales. Also interesting, the brokerage sold a residual 25 properties a month after the auction.
The owner of Sea Sotheby’s said he is limiting the auction offerings to 50.
Please email me if you would like to learn more.

[SHELLY]

I knew Shelly would be the first to respond!

Hey, someone has got to ask the hard questions....so I can assume that's a "no."


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[Sea Sothebys]

Tee hee. I don't know about the catering just yet. You'll be the first I think of and contact- once I do.

[SHELLY]

Tee hee. I don't know about the catering just yet. You'll be the first I think of and contact- once I do.

We have some fine folks who post on this board who can provide catering for your event...keep them in mind--keep it local.

And post the menu for final approval--no aerosol cheese or ritz crackers......but brownies are a must!


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[Sea Sothebys]

I agree, and I referred a local company today as the event coordinator. Just so you know! I certainly agree.

[elgordoboy]

Are you drunk with power Shelly?

[SHELLY]

Are you drunk with power Shelly?

Depending on the menu, I might just plunk down the $10,000 check admission for a paddle, dinner and a show.

Oh! Don't forget balloons, lots and lots of balloons!

(Door prizes encouraged, but not required.)


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[Sea Sothebys]

Hoping to keep the thread going here: there is not a $10,000 entry fee. And the orientations are free. And yes, I am pretty sure it will be catered Shelly. I kind of doubt there will be balloons though. Keep sending me messages, and I will answer you all as quick as I can.

[Sea Sothebys]

The orientation for both Buyers and sellers will be held January 16th.
Please let me know if you are interested in coming.

Also, I mailed a postcard to homeowners in a few areas of 30-A (WaterColor, Seaside, Rosemary and WaterSound). If you received one, please let me know. I used a new program gaining and uploading the addresses. I may have had a technical problem uploading the databases, and I am worried they are all going to be returned. Ugh.

Even if you are not interested, I'd appreciate knowing you got my postcard. I can rule out the technical problem. Thank for your response thus far. I attached the direct mail.

[Little Fish]

Sea Sotheby's:

"Of the 73 homes at the most recent Sotheby's Auction in Sarasota, 55 sold. Over 100 million in sales. Also interesting, the brokerage sold a residual 25 properties a month after the auction."

I know someone who attended a recent Sotheby's auction in Sarasota and he told me nothing sold. When was the date of the auction to which you refer?

Thanks,
Little Fish

[SHELLY]

Sea Sotheby's:

"Of the 73 homes at the most recent Sotheby's Auction in Sarasota, 55 sold. Over 100 million in sales. Also interesting, the brokerage sold a residual 25 properties a month after the auction."

I know someone who attended a recent Sotheby's auction in Sarasota and he told me nothing sold. When was the date of the auction to which you refer?

Thanks,
Little Fish

Here's the write-up from Barrons:

WHEN REAL-ESTATE MARKETS sour, owners of luxury homes and condos sometimes cling to a comforting theory, at least in the slump's early stages: Their properties are pretty much immune to a downturn, just as their own lives are immune to the daily economic tribulations of those sad and pitiful Janes and Joes forced to reside in those tacky $600,000 hovels out by the Interstate.

Alas, reality and theory don't always coincide.

Consider Sarasota, Fla., a small city in which property values are king and which was one of the hottest of the hot spots in the U.S. real-estate bubble.

Hugging Southwest Florida's Gulf Coast, with a sparkling downtown facing a gorgeous bay, 35 miles of white-sand beaches, a wealth of museums, opera, ballet and theater, plus a well-heeled population of sophisticated retirees and second- and third-home owners, Sarasota thought the ride would never end. Home prices jumped 150% from 2000 through 2005, according to the National Association of Realtors. Condos rose about 130% in the same span. And those figures, which also cover neighboring Bradenton and Venice, may understate the gains in Sarasota proper and its barrier islands, which boast a disproportionate share of the area's to-die-for properties.

But now prices are in something approaching a free-fall. The current readings say they're down 19% since the end of 2005 and 10% in the past year. Lots of residents who had considered selling their homes during the craziest of the craziness, but didn't, are wringing their hands.

Perhaps the market's hottest sector during the boom was luxury properties. "We were always under priced, compared to Naples and Palm Beach," says Michael Saunders, a woman considered one of the doyennes of Southwest Florida real-estate brokers. "Then, in '04 and '05, we outdid ourselves catching up."

And how! Multiple bids were the norm. I personally sold my house before I could even get a sign in the ground and am now financially set for life (provided I live in a trailer park).

But where are all those buyers now?

In an attempt to flush them out, SKY Sotheby's, a luxury real-estate firm associated with the famous art- auction house, decided to capitalize on its heritage. It tried a "starter auction" in May, with mixed results. But that just was a warm-up for the one that took place last month, when it pulled out all the stops.

More than $200 million worth of trophy homes went on the block, and the event was well-publicized nationally. SKY Sotheby's and the sellers spent $1 million on ads in media such as The Wall Street Journal and Barron's.

The whole town was praying that it would see the market finally hit bottom and begin its climb back. As one seasoned reporter of the local real-estate scene -- me -- noted on a blog for Sarasota Magazine: "Well, the auction is nearly here, and I'm getting nervous. It looks like the bottom feeders have arrived. That little army of people who used to drive around looking for something to buy, anything at any price, has now transmogrified into a little army of people who drive around looking for something to buy at well under half the price. The scary part is that they're finding things."

As a great local civic event, the auction is already the stuff of legend. It was held at the exclusive Longboat Key Club, and somehow become part of a weekend of celebrity golf and fund-raising, including a dinner with Chicago Cubs Manager Lou Pinella, TV game-show host Chuck Woolery (didn't you just love Love Connection?) and Mary Bono, the California congresswoman better known for being Sonny's widow.

Attendees entered on a red carpet and proceeded past a grouping of Porsches -- one of which was being raffled off for $1,000 a ticket -- and into a series of giant tents, the same ones used for the annual Sarasota Film Festival galas.

Things were delayed 20 minutes by the crunch at valet parking, but the standing-room-only crowd didn't mind. The place buzzed with anticipation, and there was plenty of food -- delicious paninis, fresh fruit, even Snickers bars for quick energy -- and a live band, although the selection of "There's Gonna Be a Heartache Tonight" might have been a little unwise.

The bidders got to sit in a roped-off area, where they were much scrutinized by the crowd. Who were they? David Band, perhaps the town's leading lawyer/power broker was there, clutching a briefcase and looking intense. I took this as a good sign -- until I remembered that he is renowned for getting things incredibly cheap. Investors abounded, particularly the younger, hungrier kind. There were even a couple of people who actually seemed to be looking for a house to live in.

The bidding began. Slides of the dwellings for sale were projected on giant screens, and even though I'd studied the catalog for hours, I felt a spasm of pride as each one came on. The houses were cannily chosen to reflect the many splendors of Sarasota, and included a $20 million estate on Casey Key, just down the beach from novelist Stephen King's place; a bay front Longboat Key mansion ($11,999,000 asking price); a beautiful three-story Georgian in a tony development called The Oaks ($8.9 million), and on and on. Some were on the beach, some were in new high-rises, and some were in gated communities east of town. But there was little that wasn't over a $1 million, and $3 million homes were common.

One question was paramount: Did they sell or didn't they? Of the 79 properties on the sales list, 18 were offered "absolute," meaning that the seller hadn't set a reserve price and supposedly would accept any bid. But the median sales price these attracted was less than half of the original asking price. Ouch.

Thirty-seven properties were sold "subject to owner confirmation," meaning they didn't receive bids above their reserve price -- the minimum that the seller had told the auctioneer beforehand would be acceptable -- and thus maybe sold or maybe didn't, depending on whether the seller would accept the low-ball bid.

What did go were the more unusual homes in premium locations.

The $20 million estate went for about $14 million -- a 30%-plus discount, but still a record price for a single-family home in Sarasota County.

The Longboat Key mansion, apparently not quite so special despite its home theater, billiard room, four fireplaces, four-car garage, boat dock and infinity pool, couldn't get the $5 million bid at which the auctioneer had hoped to begin the sale.

But the three-story Georgian, perhaps the most refined and distinctive property on the block this day, precipitated a bidding war.

A prosperous-looking young man who happened to be standing next to me really wanted that house. At $6 million, the bid came to him. Would he raise it? The spectators were riveted. After an agonizing moment, he made his decision. "Let Jason have it," he snarled, and turned away. Whoever Jason is, he got the $8.9 million mansion for $6.1 million, plus the 10% commission the buyer pays the auctioneer.

Very high-end condos also did OK. What didn't do well was the mundane. It was a bad day for your typical $2 million Spanish Med. The auctioneers seemed to put the good stuff first, and when the run-of-the-mill came on, well, the crowd was getting tired. The woman sitting next to me was keeping tally -- as were many others -- and after a while, her DNS (did not sell) list got longer and longer.

The Sarasota Herald-Tribune, the local newspaper, reported last week that only $31.9 million in confirmed deals had resulted from the big day.

So, was the auction a success?

It depends on whom you talk to.

"I am absolutely 100% satisfied with the outcome," SKY Sotheby's president, Chad Roffers, declared, although he admits he lost 10 pounds in the process. "We brought buyers out of the woodwork." His arch rival, Michael Saunders, has a different opinion. "I think the results were dismal," she told me later. "Many people were very disappointed. It was much ado about nothing."

One person who analyzed the reported sales concluded that, for the properties sold "absolute," the median sales prices was just 45% of the original asking price, and that 35 properties didn't even get an acceptable opening bid and so remained unsold at the auction.

And, of course, some competing real-estate agents, as steeped in schadenfreude as they are in mortgage rates, quickly came up with a catty saying: If you want to sell your home, call a broker; if you want to give it away, call SKY Sotheby's.

But still, something had happened, and Chad Roffers was the catalyst. The clever real-estate agent had tweaked the auction to his own purpose. It was no longer a gavel-driven, sold-to-the-highest-bidder experience, but rather, a multipart sales tool. It generated massive publicity -- front-page news locally for several days running. Anyone who bid -- no matter how low -- was considering bidding, or wished he had bid, was invited, or rather urged, to meet the seller in one of the private tents that fronted the golf course and see what they could work out. And deals were reached this way on at least several properties.

Drawing-broad conclusions about what one auction in one market says about the U.S. luxury-home market is dangerous. But the Sarasota sale certainly said something about the once-torrid Florida luxury-home market...and similar markets around the country. And what it said wasn't reassuring for those with high-priced property to sell.

Chad Roffers has another auction coming up in March. Will it work any better? No one has any idea. After all that Sarasota's realty market has been through lately, the only thing local people are betting on is that he'll probably lose another 10 pounds.

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Disclaimer from postcard:
* This material is based upon information which we consider reliable, but because it has been supplied by third parties, we cannot represent that it is accurate or complete, and it should not be relied upon as such. This offering is subject to errors, omissions and changes including price or withdrawal without notice. ©MMVII

Sotheby's International Realty Affiliates LLC. All Rights Reserved. Sotheby's International Realty® is a licensed trademark to Sotheby's International Realty Affiliates LLC. An Equal Opportunity Company. Equal Housing Opportunity . Each Office is Independently Owned and Operated.

If your property is listed with a real estate broker, please disregard. It is not our intention to solicit the offerings of other real estate brokers. We are happy to work with them and cooperate fully.

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IMO you missed the boat when you failed to mention that it would be a catered affair with paninis, fruit and Snickers!.

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[Sea Sothebys]

I appreciate the post Shelly. I did give the exact stats released to Sea Sotheby's. And I will send this post to Sea Sotheby's Broker for some investigating. Just so you know, all real estate marketing materials are required to have disclaimers. The disclaimer for Sotheby's materials is the same on all their collateral templates. Not much more to read into that. If the Sotheby's Auction locally brings a great deal of media attention, I think it will be well received by all realtors and sellers; So many do not have marketing budgets right now. And the little they do, they are focusing on local media to placate sellers. This does not help us find buyers. With Sotheby's, a seller is piggy-backing a big brand with an international integrated marketing plan. Whether or not someone wants to participate in the auction, they have the option to simply list with Sotheby's. Sotheby's is still new to the area- I decided to hang my license after years of real estate marketing (not selling). This is my first month and I have had a 15% response after my first campaign. I am still gauging the postcard as it just went out. I did get a few calls later on today. 15% response in marketing is well-above industry standard. And thus far, from speaking to these folks, it seems it is because the Sotheby's brand. I am anxious to see what will happen March 15th. I will, of course, remain optimistic.

[Bobby J]

I appreciate the post Shelly. I did give the exact stats released to Sea Sotheby's. And I will send this post to Sea Sotheby's Broker for some investigating. Just so you know, all real estate marketing materials are required to have disclaimers. The disclaimer for Sotheby's materials is the same on all their collateral templates. Not much more to read into that. If the Sotheby's Auction locally brings a great deal of media attention, I think it will be well received by all realtors and sellers; So many do not have marketing budgets right now. And the little they do, they are focusing on local media to placate sellers. This does not help us find buyers. With Sotheby's, a seller is piggy-backing a big brand with an international integrated marketing plan. Whether or not someone wants to participate in the auction, they have the option to simply list with Sotheby's. Sotheby's is still new to the area- I decided to hang my license after years of real estate marketing (not selling). This is my first month and I have had a 15% response after my first campaign. I am still gauging the postcard as it just went out. I did get a few calls later on today. 15% response in marketing is well-above industry standard. And thus far, from speaking to these folks, it seems it is because the Sotheby's brand. I am anxious to see what will happen March 15th. I will, of course, remain optimistic.

You go girl! Thanks for your post and hope to work with you in the future!

[Little Fish]

Shelly:

Thanks for the link. Sounds like Chad Roffers is doing whatever he can to get properties moving in the area, which is a good thing. Barron's doesn't seem to have an opinion on whether or not the auction was successful, so I guess we still haven't seen the bottom in Sarasota.

Sarasota has been hit much harder than most cities in Florida. My assumption is that when we see the bottom in Sarasota, things will start to pick up elsewhere. Right now there are incredible deals in the area, but it appears buyers are still in the "wait and see" mode.

Sea Sotheby's:

Best of luck with your auction. Hope all goes well.

Little Fish

[Miss Kitty]

I received the Sotheby's card! Very nice. How did you get our name, again?

[Sea Sothebys]

Before I opened SoWal today, I prepared myself for what I thought was going to be a flurry of negative attention. I wondered if my post would be taken out of context. I appreciate the private messages and positive feedback.
Also, thank you Miss Kitty, the postcard databases were gleaned from county tax rolls.

[livingiSoWal]

Keep Shelly happy and you will prevail.

[Bobby J]

Before I opened SoWal today, I prepared myself for what I thought was going to be a flurry of negative attention. I wondered if my post would be taken out of context. I appreciate the private messages and positive feedback.
Also, thank you Miss Kitty, the postcard databases were gleaned from county tax rolls.

You can learn a lot from all feedback! Good luck and look forward to the orientation.

[Sea Sothebys]

Very Wise.

[Sea Sothebys]

Hi All. Referring back to the post by Shelly (Barron's Article): I had the pleasure of meeting Chad Roffer yesterday at our orientation for the auction (for Sotheby’s Agents only, the co-broker + seller orientation is January 16). It was the official launch of our auction coming in April (we agreed to change the date from March 15, to April 5). We discussed the November Auction in detail. The sales from the Sarasota November Auction have reached 100 million, with 20% of the sales happening prior to the auction (mostly the day before) and some being residual. The auction that produced zero sales the day before the Sotheby’s Auction was a “competitor” who tried to come in with a weak marketing plan- charging a nominal marketing fee to the sellers. This was truly a case where you get what you pay for.
Some of the stats that I found most interesting: absolutes received 11 times more bids than reserves. Competition drives prices. Also, Sky Sotheby’s gained 50% more market share after their auction due to success and media attention. I mentioned a lot of other stats in an earlier post that were highly intriguing.
I am happy that I have many co-brokers interested in participating – If you have a seller who you think might be a candidate, please consider coming to the orientation on January 16th. It seems the ideal product mix will not be hard to reach, as there will only be 50 offerings. It seems like an ingenious way to create urgency in a market that is otherwise over-saturated. It certainly has given me something to talk about. One of the best candidates I have had thus far was generated from the postcard mailing I posted about earlier- it landed me a waterfront seller who purchased 6 years ago. He wants to do an absolute and considers this option an easy way to unload investment property. No distress, just wanting an accerlated sell... This is the ideal scenario, not only because it is a guaranteed payday for me, but because he gets the Net Present Value and is realistic about the market. Carrying that property until it sells in the current market- is not something he is wants to do. When you look at his insurance, taxes and mortgage, it is a better idea to sell now at the Net Present Value. It also helps that he bought six years ago. Think about your sellers, maybe approach them and see if they are interested. I suggest coming to the orientation. I hope you feel you have nothing to lose and much to gain.

[SHELLY]

Hi All. Referring back to the post by Shelly (Barron's Article): I had the pleasure of meeting Chad Roffer yesterday at our orientation for the auction

Did Chad keep the 10 pound off?


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[SHELLY]

Do you know whyizit that the Sugar Bay Estate on Casey Key, that was reported in the newspapers as "sold" for a record $14M during the Sarasota auction in November 2007, is listed on the Sky-Sotheby's website as "backup offers needed" and showing a price of $20M? http://fl.skysothebysrealty.com/sarasota/344239/

Is it a flip?

Among the notable sales of the day was the Sugar Bay Estate, at 1522 and 1538 N. Casey Key Road, which sits on 2.5 acres on north Casey Key with a private beach and access to the Intracoastal Waterway. It sold for $14 million, setting a record for a single-family home sale in Sarasota County. Sarasota County tax appraisers gave the estate a total assessed value of more than $15.2 million for 2007.

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[Sea Sothebys]

I'll find out. That sale was a record-breaking price for Sarasota real estate. I will check into the back-up offers and post back with what I find out.
Chad looked healthy. Younger than I thought he would be. He reminded me of my corporate days with Playground/Intrawest- must be that Canadian accent.

[Babyblue]

Do you know whyizit that the Sugar Bay Estate on Casey Key, that was reported in the newspapers as "sold" for a record $14M during the Sarasota auction in November 2007, is listed on the Sky-Sotheby's website as "backup offers needed" and showing a price of $20M? http://fl.skysothebysrealty.com/sarasota/344239/

Is it a flip?



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Gas logs??? No way worth 20 large.

[Sea Sothebys]

The response from Sky Sotheby's:
Regarding your email and the agent who is inquiring about the 1522 & 1538 Casey Key Road: Those properties were listed collectively for $20,035,000 prior to the auction and received a contract of $14M on Auction Day. The seller was one of few who requested a longer contract term than 30 days, to close in the New Year for tax purposes. It is still pending, so feel free to pass that information on. We actually received a back-up offer on one of the parcels last week.

[Bobby J]

The response from Sky Sotheby's:
Regarding your email and the agent who is inquiring about the 1522 & 1538 Casey Key Road: Those properties were listed collectively for $20,035,000 prior to the auction and received a contract of $14M on Auction Day. The seller was one of few who requested a longer contract term than 30 days, to close in the New Year for tax purposes. It is still pending, so feel free to pass that information on. We actually received a back-up offer on one of the parcels last week.

You go girl!

[Sea Sothebys]

Hello all. Wednesday is the seller and co-broker orientation. I just wanted to remind you- in case you plan to check out the grub Shelly.

The venue is The Palms in Destin.

I am looking forward to meeting some of you in person. If you are interested in coming, please let me know. It should be quite a turn out.
I believe the auction properties will be determined before the end of the month. I will certainly post again as I know the mix. My hopeful sellers are a mix of SFH, condos and Parcels. I'll let you know the reserve vs absolute mix, as well. Any interesting stats I can glean I will throw your way. If you have some questions, send them my way.

[SHELLY]

Hello all. Wednesday is the seller and co-broker orientation. I just wanted to remind you- in case you plan to check out the grub Shelly.

I've got previous commitments ....but I am counting on one of the agents from our "Food Logistics Intelligence Patrol (FLIP)" to post a detailed report.





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[Joe Mammy]

Just talked with a SS associate broker who wanted to know if I was going to their orientation tonite.

He told me they are charging $15K up front to the seller's for marketing!!!!

To put that in perspective, Anderson and Roebuck charge $10K and PAG recently charged $2500.

He did insist that there would be $1M worth of marketing and that the auction was limited to 50 properties.

50 properties X $15K = $750K

hmmmm...he wasn't sure about the buyer's premium or the co-broke split but I would be amazed if the bp was less than 10%.

I think I'll watch this one from the sidelines. We did sell 2 out of 4 that I referred to PAG with still a very good chance to sell the other 2.

[robertsondavies]

15K to desperate sellers arggghhhhh predatory auctioneers.

I'm going to settle in and watch some Family Guy.






Stagflation be damned

[Sea Sothebys]

Let me attempt to save this thread. I know, easier said than done. I am just returning home from the orientation. Firstly, yes, any property chosen for the auction will participate in the international marketing campaign (did these other auctions have an international campaign, I sincerly do not know.) Properties under 5M will pay 15K marketing fee. Over 5M, a 25K fee. Yes, that is true. I am on the sales team, and I know the commission structure and the buyers fee. A selling agent will get 3% on the opening bid and then 1% on the selling price. The buying agent will get the same cut. The selling agent can opt to do just a flat 1.5. The facts are compelling. Sotheby's is really successful at creating urgency in a market that has none. And the buyers are coming from all over the world. We are talking about end-users, so not another band aid over yet another band aid.
I know I am an optimist, and that can be annoying. But instead of trying to compare oranges to apples, I hope that you see that you get what you pay for. The last auction 58 days ago in Sarasota sold 51 of the 74 properties at the auction (stat I got tonight). Add on another 11 sales since the auction, and now you have an even more stunning stat. Consider this, you can sit out, and watch what happens, or you can bring a buyer or seller, and have a payday. And yes, the marketing budget does correspond with the sellers fee, and the dollars have already been committed. A lot of these pubs and internet media had deadlines weeks ago. I got the seller packet in digital form, so if you want it, email me and I will gladly give it to you. It covers a lot of questions... and I think it is too big to post on this forum, but I will check.
I saw some sowallers tonight-thanks for coming.

[Sea Sothebys]

I should also say, my sellers aren't desperate, and the ideal candidates being chosen will not be desperate. They want an accelerated marketing plan, and they know that they could not receive the attention that this plan will give them otherwise - and they like their odds. The average time it will take them to sell is 33 months in this market... it is a good business decision.

[Sea Sothebys]

You know, I noticed it wasn't catered. Just some drinks in the back of the room. For some reason this really started me thinking... about Shelly.

[SHELLY]

You know, I noticed it wasn't catered. Just some drinks in the back of the room. For some reason this really started me thinking... about Shelly.

Let's hope they get that detail straightened out for the auction, Bucko!


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[Capricious]

"..The average time it will take them to sell is 33 months in this market..."





Worse than I thought.

[elgordoboy]

Yeah you are.

[Sea Sothebys]

Thought some of you might be interested in the Auctioneer website. Some great info
http://www.decaroauctions.com

[Sea Sothebys]

I had a meeting today with the whole team and got an update on some of the publications that hit newsstands today with our Auction ads [Overtime Magazine (pro athletes), Forbes hit today]. The buyer campaign has begun; However, not all the homes have been selected yet. And none of them have become public knowledge yet.


More seller reservations are being taken over the next ten days, and then they will close the pipeline to sort only those with the most potential. All those not chosen will get their marketing fee back in full.
It has been quite a consuming process.

I will be in Rosemary Beach this weekend at an open house. If any of you would like to come by and talk to me about the auction, please PM me. Also, if you have a seller you would like to 'nominate' but really can't speak about the auction with great knowledge, the auction officials are in town and can do either a conference call or a face to face meeting. It is a simple way to get the process on the right foot.

Thanks!

[Pirate]

Are you drunk with power Shelly?

I actually spit out my water when I read this.

[neorose]

I wonder if the Sotheby's group had success at the auction.

[robertsondavies]

I'm curious too if anyone who may have attended could give us the 411 on what happenned.

[Sea Sothebys]

I attended- participated with a seller and a buyer. I don't have any stats yet, as I had a phone bidder and was caught up in the moment. It was a disappointment though-everyone I talked to was unhappy with the outcome. I think the bottom line was the buyers were not there. There were several people holding paddles that didn't raise them once. The house in Rosemary Beach did get a high bid winner (my phone bidder), but the contract is in negotiation, as it did not meet the reserve. It was exciting, and well-done- but not in terms of generating the buyers. I will likely get alo the stats and post-

[SHELLY]

I attended- participated with a seller and a buyer. I don't have any stats yet, as I had a phone bidder and was caught up in the moment. It was a disappointment though-everyone I talked to was unhappy with the outcome. I think the bottom line was the buyers were not there. There were several people holding paddles that didn't raise them once. The house in Rosemary Beach did get a high bid winner (my phone bidder), but the contract is in negotiation, as it did not meet the reserve. It was exciting, and well-done- but not in terms of generating the buyers. I will likely get alo the stats and post-

There was a condo auction in Gulf Shores AL the same day....plenty of buyers, plenty of sales--of course, they were all auctioned absolute

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Gulf Shores real estate
Sunday, May 04, 2008

GULF SHORES, Ala. A driving rainstorm didn't stop bidders from buying 44 condominium units for more than $13 million at an absolute auction that attracted more than 1,000 people to the Crystal Tower condo complex Saturday afternoon.

Amid wall-to-wall umbrellas, more than 500 registered bidders from 20 states came to look for a deal or at least catch a glimpse of the condo-buying fever evident on West Beach in Baldwin County.

The lowest unit sale prices were $275,000 and the highest purchase price was $350,000, which included the 10 percent buyer's premium added to the bid amount, according to the National Auction Co. based in Gadsden.

"My brothers and I had not intended to go that low," said Collier Merrill, the developer of the 170-unit Crystal Tower on West Beach Boulevard. "But we wanted to move some product and in an hour we sold 13 million dollars' worth."

The Merrill family had planned to sell 30 units at absolute auction or with no minimum bid, and instead sold 44. They kept about 20 for rentals, Merrill said.

"Considering the weather, we had a lot of people come out," Merrill said. "There was a lot of buzz about it and it's a nice product with good amenities."

The developer held back about 70 of the 170 units when presales were released in 2004. At that time, the units were selling in the high $400s to high $600s, according to agents and the developer.

The 20-story complex is not on the gulf-front or on Little Lagoon, but does have water views and an enclosed, air-conditioned skywalk across the road to a private beach club and swimming pool.

Vernon Jackson of Daphne had hoped to buy a unit for $225,000, but was happy to get one for $250,000. While he plans to live there full time, he admitted he didn't know how he was going to explain his sudden purchase to his girlfriend. It took him less than 10 minutes to walk away an owner.

The auction started an hour late, at about noon, thanks in part to the heavy winds, lightning and battering rain. But it was mostly due to the long line of folks waiting to register to bid. The bidders were required to bring $10,000 in certified funds for each condo they bid on, according to William Bone, president of the National Auction Group. The auction staff ran out of forms and auction paddles and scurried to make some temporary forms.

Four condo units were sold before the auction started, Bone said. The bidders came from as far as Reno, Nevada; Texas, Chicago, New Orleans and even a buyer in Georgia who made his successful bid via the Internet.

About a dozen disgruntled, would-be bidders demanded and received their checks back after the auction start was delayed.

"They must not be serious bidders," Bone commented. Pointing to the crowd, he added, "This was a huge win for every developer on the Gulf Coast. It demonstrates a pent-up demand."

While many Realtors and their clients waited on edge for the prices to drop to their satisfaction, there were lots of individual investors who took the leap and bid.

One such buyer was Jim Gauntt, who drove to Gulf Shores from Atlanta and went back home a first-time owner of a two-bedroom condo unit for $270,000. He didn't care that it wasn't on the beach. "It's got nice amenities," he said.

Tuscaloosa physician A.B. Reddy bought an interior unit for $250,000 and plans to rent it out, he said.

The crowd and the fact that units were selling for $250 per square foot was "fabulous," said Bob Shallow, owner of REMAX Paradise in Orange Beach, who came to see what the units would command. "You have 1,000 buyers out here. This is sweet. It shows the market is there. This is the best thing that could happen to the real estate market today."

The sales prices helped to establish a bottom to the unit property values, according to Realtors.

"The crowd is phenomenal," said Patrick Daily, owner of REMAX of Orange Beach. "People are ready to buy."

All of the units were brand-new, faced the gulf and had balconies, but the sought-after units were the corner units on floors seven and up, which sported the best views of the Gulf of Mexico.

Some units were furnished. The complex amenities include an indoor pool, two outdoor pools, two spas, a sauna, fitness center, game room and media room. The monthly condo association dues are about $500 a month, Realtors said.

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http://www.al.com/news/mobileregiste...l=3&thispage=2


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[Bobby J]

Absolute auctions seem to be the only way to go as far as auctions go.

[Sea Sothebys]

Makes sense to me...

[SHELLY]

I attended- participated with a seller and a buyer. I don't have any stats yet, as I had a phone bidder and was caught up in the moment. It was a disappointment though-everyone I talked to was unhappy with the outcome. I think the bottom line was the buyers were not there. There were several people holding paddles that didn't raise them once. The house in Rosemary Beach did get a high bid winner (my phone bidder), but the contract is in negotiation, as it did not meet the reserve. It was exciting, and well-done- but not in terms of generating the buyers. I will likely get alo the stats and post-

It was successful in one aspect....at least the folks now know what their properties' market prices ain't.


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[DuneLaker]

Collier Merril is mentioned as the developer of the Gulf Shores property auction in the story above. I've seen him in SoWal over the years. Does he have anything here ready to go on the auction block? Also, wonder if this will cause a shortage in his campaign funding this year. He's an active and top tier player in the Northwest Florida and Florida campaign funding game.