Did you hear about the auction on Sunday, September 20th, for new homes in Acton’s Landing in the Historic District of Annapolis? The developer decided it was time to get the last units sold, even if it meant dramatic price reductions. They hired REDC, a professional marketing firm out of Irvine, California, to get that inventory off the shelves. For weeks, street corners in the Historic District of Annapolis were graced with folks waving “AUCTION” signs in the air. A gorgeous marketing brochure was created, promoting Annapolis and Acton’s Landing, to draw those who didn’t yet know about the benefits of living in our lovely town.
Sunday was a beautiful day, and the turnout was good, including spectators and potential buyers, both with and without buyer’s agents. All thirteen units were sold. The most expensive home sold was the five-bedroom home at 46 Franklin Street, with a winning bid of $1,460,000 plus a five percent buyers premium. The buyer had previously won the bid on a townhouse, and changed his mind when he saw how the auction for the house was progressing. The auctioneer accepted his new offer and then re-auctioned the townhouse. Exciting things happen at auctions, where choices are made quickly!
The unit with the lowest starting bid was a two-bedroom condo starting at $249,000. One lady, who was hoping to get this as her new home, watched and waited through the whole auction, watching twelve other homes be sold, till it was time for this one to be auctioned. In the middle of the bidding, the auctioneers made sure she knew about the age restrictions – someone over age 62 needed to occupy the condo. Sadly disappointed to discover this at the last minute, she stopped her bidding. Someone else won the bid at $345,000 (plus the five percent buyers premium).
What you don’t know can hurt you. I have heard of cases where people who bought homes at auction didn’t know about the buyer’s premium, and paid more than they intended. Five percent on a purchase of $345,000 or $1,460,000 is not chump change!
I hope that lady who was bidding on the most affordable condo found a Realtor to help her through the process, so that she gets a great buy on a home she’ll love. Someone to show her properties that will work for her, to advise her on values, to help her through the process. A little expert guidance makes a big difference!
P.S. Call me today for all your Annapolis real estate needs.