Developers Use Auctions to Move Condos

When it's tough to set prices, these sales let buyers do it
By Katherine Thompson,  Newser Staff
Posted Nov 28, 2008 1:22 PM CST
Developers Use Auctions to Move Condos
Luxury condos, located at The Heights of Carmel Valley, will be up for auction on Saturday, February 9th. Real Estate agents are relying more on auction to set property prices.   (Photo: Business Wire)

With buyers scarce and prices in Florida's condo market plunging, sellers are increasingly turning to auctions to move units in new developments. No longer just a means of unloading foreclosed homes, the auctions also keep agents from having to guess what the public is willing to shell out, the New York Times reports. “In this market, it’s not easy to determine value,” says one auction exec.

“It’s a win for the developer because he moves a lot of inventory quickly,” he adds. And it allows buyers to snap up bargains, while the competition reinforces the idea that such purchases are a good idea. But auctions won't solve everything: they only work if buyers are willing to bid beyond the minimum price. (More auction stories.)

Get the news faster.
Tap to install our app.
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.