Another Successful Auction... Eventually

Charlemagne Drive Condo Sold! (Link here to photos.)

I spent all weekend looking at this view of the Chesapeake Bay. The air temps were 75 degrees, and there were beautiful people all around and potential buyers by the droves coming through my open house. I am pretty well hooked on this lifestyle of real estate investor. I had a great time and ended up with a solid potential paycheck.

Here's some of the stats.

• Total visitors: 150+ ( I started counting 'buyers' groups' instead of individuals after the first hour on Saturday since there were just too many coming and going. 52 total groups.)
• Signs posted in 1 mile radius on major roads and inside complex: 48
  
• Signs retrieved on Sunday night (in the pouring rain...): 23
• Lost/unretrieved signs: 25
  
• Complaints/phone calls from local neighborhood residents for ugly yellow auction signs: 1
• Batches of chocolate chip cookies baked for visitors: 4
• # of bidders on list: 6

• RESULTS: Final bidder ended up backing out on Monday morning. Bummer.
• RESULTS PART II: I immediately got on the phone and got 3 bidders at a price $25k below the minimum bid. Bummer. However, since I was able to approach the seller with 3 bona fide offers and even though they were below the option price we had originally agreed upon, he was willing to lower his price enough for me to make my target margin on the deal!
  

Lessons learned:

1. Condos are more challenging to comp during market downturns. I was waaay off in my estimate of how much the market was willing to pay for this unit. Even with the private garden area, private beach path gate and extra parking, the end price was $10k below what I had originally contracted for and $40k below what I thought it might sell for...
   
2. Condos have a limited buying base compared to traditional residential/single family houses. Lots of lookers, few buyers. I had 30 visitors to sell Norlina, 150 visitors to sell this condo.
   
3. Condo association rules about sales of real estate and signage tend to be much more strict than traditional neighborhoods. This can/will put a severe damper on your marketing strategy if you are relying on signs alone. I lost a large number of signs to people in the complex and the surrounding neighborhood. No city fines though...whew!
   

Lucky for me I have a multiple pronged marketing strategy using signs, the newspaper (zero responses), and the AWESOME $1,000 dollar post card. (see previous post for picture of card.)

In the end it was a successful open house, a successful negotiation with buyers and a successful re-negotiation with my seller. We're hoping to close by the end of the month.

Let's hear it for 5-figure paychecks!!!

Hip-hip HOORAY!!
-TAYLOR