We recently had a new event in Bremerton, which is a city in Kitsap County Washington, an auction of a condo project called The 400. Carol Sue Rogers, the Broker of our Bremerton office wrote this article for our newsletter.
The auction of The 400 by Carol Sue Rogers
The highly publicized and much anticipated “400 Auction” took place a few Sunday’s back. There was quite a buzz in Bremerton and a lot of uncertainty of what the auction really meant.
NBC nightly news ran a story and several local newspapers covered what they perceived as more doom and gloom in the real estate market place. Buyer’s perception was that the building was in foreclosure and they could get a luxury waterfront condo for $109,000.
The auction company is a real estate company with a different method of selling real estate. It is a way to generate activity on their listing. With gorilla marketing efforts which included folks on street corners waving signs, it definitely got attention and the free advertising the media provided it is no surprise it received so much attention. This idea is new to our area and buyers lined up with hopes and dreams of buying a luxury waterfront condo for pennies on the dollar. Many left disappointed with the final outcome.
Below is an example of some of the sales information that we were able to obtain. Final results of the 28 units that were auctioned: 18 are currently sold/in escrow ~ 2 flipped at auction and 8 bids were rejected. The unsold units will be rented for the next few years through a corporate rental service.
| Unit – Floor Plan | Original List Price | Starting Bid | Final Bid | Actual Cost after Buyer premium | Results |
| | | | | | |
| 212 Enetai | 209,900 | 109,000 | 175,000 | 183,750 | Accepted/SOLD |
| 300A Illahee | 289,900 | 139,000 | 195,000 | 204,750 | Accepted/SOLD |
| 113 Sinclair | 399,900 | 209,000 | 225,000 | 231,000 | Accepted/SOLD |
| 205 Manette | 569,900 | 269,000 | 380,000 | 399,000 | Accepted/SOLD |
| 112 Veneta | 459,900 | 249,000 | 350,000 | 367,500 | Reserve Met/Sold |
| 108 Sedgwick | 897,900 | 409,000 | 610,000 | 645,750 | Accepted/SOLD |
| 111 Keyport | 317,900 | 165,000 | 220,000 | 231,000 | Seller Rejected |
| 301 Illahee | 327,900 | 159,000 | 217,500 | 228,375 | Seller Rejected |
| 114 Sinclair | 399,900 | 199,000 | 215,000 | 225,750 | Seller Rejected |
| 400 Veneta | 489,900 | 249,000 | 310,000 | 325,500 | Seller Rejected |
So what else did we learn…..
1. Over 1200 previewed the property, less than 100 attended the auction and approximately 35 were registered bidders. Only 3 of the bidders were from outside Kitsap County.
2. National media attention on your listing doesn’t guarantee a higher sales price.
3. A property that is being auctioned does not always mean it is in foreclosure.
4. Market Value was just established on New Waterfront Condos in Bremerton.
5. The auctioneers commented that this was a tough crowd. Tuxedos and all , they just couldn’t Kitsap County buyers to bid to the undisclosed reserve amount on 25 of the 28 units.
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