Buena 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!