Dec
18
2007
Buena Vista Homes Auction
By Charles TurnerBuena Vista Homes held a massive auction over the weekend to sell of their inventory of home. I did not go but Adam Lake did and blogged about it.
Although the homes looked especially attractive with super-low starting bids, some brokers were concerned that the homes had a higher, undisclosed “reserve price” that was the lowest Pollock was obligated to accept. But Pollock said about 96 percent of the homes he sold went for below the reserve price. The reserve price, he said, was equal to his costs.
“We didn’t make any money on these homes,” Pollock said. “We lost money.”
They raised $65 million on the sale of 141 homes!
I’m surprised he sold so many homes. I heard most homes sold were just below market value.
I thought the $65M was the total amount of the final bids, but that only a few properties met thier reserves, so only a few properties actually sold.
Jim – they agreed to sell below reserve, at least for now. See the O.
My understanding is that the reserve price was the price that the builder was into the proprty for. He accepted lower prices than the reserves and therefore took a loss on those homes.
Oh, I didn’t get that part. Thanks. When I read the rules about the reserve prices, I thought the whole auction was a marketing ploy, so I stayed away. Now I wonder what I missed. I bet there were other potential bidders like me who stayed away, too.
How do I find out about future auctions. There are some new developments here in Orenco that I have my eye on.