Results of Absolute Auction in Tesoro Preserve
Postponed by tropical storm, Fay, the sale was held last night.
Palm Coast, Florida – August 27, 2008 – An absolute auction of a building lot in Tesoro, Bobby Ginn’s private golfing community in Port St. Lucie, was scheduled for August 19th. Tropical storm, Fay, caused a delay. The rescheduled auction was held on-site last night under threatening skies.
In an absolute auction, the highest bidder wins, regardless of price. Eight bidders registered for the sale. They were joined by a handful of spectators. Bidding began at $25,000, jumped to $30,000, then to $35,000 when the bidding increment dropped to $1,000. It finally stopped at $49,000. A 10% buyer’s premium (to pay the auction company) brought the sale price to $53,900. This Tesoro Preserve lot was originally purchased for $245,150.
Elliot Paul & Company was the auctioneer
Wait 3 mohths
In 3 months, they could probably buy it for $30,000.
20%
That is certainly something when a quarter of a million dollar lot sells a short time later for only twenty per cent of the original price.
This is setting a bad precedent for the other properties in Tesoro. I would assume it will be years, if not decades, before the land prices reach the original selling price again.
Forget short sales
Great reporting as always, Toby. The real question here is who got stuck for the enormous loss? If there was a mortgage, the bank would have to agree to this loss as a short sale – and that is never happening. Why bother? As I understand it, this investor actually came to the closing table with this deficiency! If so, he is insane! Either just walk away and let them foreclose or make a deal with the bank to take back the property with no deficiency judgment.