Historic Absolute Auction of
Lake Tahoe’s Glenbrook Real Estate will be conducted July 15th.
A never before conducted Absolute Auction of Lake Tahoe’s historic Glenbrook community will take place on July 15th. In addition, you may see the likes of Charles Barkley, Ray Romano, and other celebs bidding at this real estate auction.
Zephyr Cove, NV (PRWEB) June 22, 2010 — Will Lake Tahoe’s first ever Absolute Auction being held July 15th in the historic Glenbrook Community be enough to draw the likes of Charles Barkley, Ray Romano, Troy Aikman, Dan Quayle and other celebs? Considering a 7000 sq ft classic Tahoe Lodge will be sold to the highest bidder regardless of price, this no-reserve auction may offer a tasty enough prize to draw them away from the Edgewood Tahoe’s Celebrity Golf tournament.
Absolute Auction Lake Tahoe NV Real Estate
Exclusively Auctions has successfully sold by auction luxury homes similar to this Nevada jewel throughout America. The Glenbrook Community boasts a private 1/2-mile sandy beach, championship tennis courts, and it’s own 9-hole golf course. Current owners hail from the gaming industry, the arts, food manufacturing, beverage distribution and tech scions. For the first time ever, a buyer will actually hold their bid paddle in the air and name their own price.
Local Lake Tahoe real estate broker, Elaine Casteleyn, who is regularly cited by the UK’s Financial Times says, “Real Estate Auctions like this happen so rarely. Due to these financial times, someone is going to steal this magnificent home.”
Aside from Lake Tahoe being a sportsman’s paradise, this luxury property is situated in the tax-free state of NV. A Koi pond entry, a Kohler environmental sun room, a solarium, a heated driveway, and more appoint this 4-bedroom, 6-bath mountain retreat. It’s said that the people that buy in Glenbrook, Lake Tahoe, wouldn’t live anywhere else around this 80 mile lake resort. And now, considering this absolute auction opportunity - most everyone would agree.
Registration for the upcoming Absolute Auction is pretty simple. Place a $25,000 refundable deposit with any Lake Tahoe broker and be ready to close your bid 30 days after the July 15th live auction. The question is, “Will you be bidding against Charles Barkley?”
See you at the Absolute Auction.
Author’s Statement
The primary goal of an auction should be to locate and motivate as many ready, willing, and able-buyers as possible in order to sell property for its highest price.
CURRENT INFORMATION
Auctions have existed for several thousand years as a mechanism for the timely liquidation of goods to currency. For the most part, Auctions have worked successfully. From the sale of slave humans as a commodity, to the reduction of war plunder, the transfer of art as a commodity, the reduction of debt paper, the sale of antiques, and most recently the visible liquidation of real property in what appears to be desperate times.
This writer will limit the content to what appears as a phenomenon in the United States, specifically the liquidation of real property. First, some ground work of disclosure is important so that the concepts proffered herein are understood for agreement or refutation.
First, Auctions are often assumed to be an application of the level playing field of economic theory. More specifically, a willing and capable seller, being under no special duress and a willing a capable buyer, also being under no specific duress, who both come together to express their demand and supply pressure to some outcome at a specific period in time.
Second, in some few cases, Auctions are the only mechanism for sale to derive true market value. Some commodities have rare or no comparisons and thus an auction might be considered the best way to bring the market value sale to pass. An example might be a rare Leonardo painting needing to establish value by something other than one person’s opinion. During this year’s recent fall art auction, a small painting by Andy Warhol fetched almost $43M – many times more than the appraiser or seller’s opinion of value. In this example, it appears that market demand pressures were far greater than the expert opinions of value.
Third, generally speaking auctions are only recently becoming more interesting as a common platform for the liquidation of real property in the United States. In only a few other countries, the UK, Australia, and New Zealand are real estate auctions essentially common. NAR predicts 1:3 homes will be sold via auctions in the next few years. This will likely not happen unless the government actually mandates or forces banks to release the glut of foreclosed (REO) properties held by bank Asset Portfolio Managers into the market place, and unless the government sets laws for fair auction practices.
Fourth, Auction participation is often driven by human emotions. This is an Aristotelian concept. “If you would move man to action, you would first move his emotions.” This author’s opinion is that fear and greed are the two most primary motivators of real property auctions in America. Certainly, other types of emotions are involved, but these two are foremost.
It’s not a difficult argument to assert that many people attend an auction of real property as a buyer due to a motivation of greed. At the buyer’s root, they believe they will get a great deal. It should be highly doubtful that one might be motivated to attend and auction so as to simply get a market-value deal.
Fear may also play a key role in the sale of real property in America. In an ascending market, the fear could readily be, “I fear that if I wait too long the price of the property will ascend and thus it will cost me more to purchase later.” Conversely, in a descending market, one might state, “I fear that if I buy now, that the prices/value will continue to fall and I will lose money if I buy too soon.” Auctions bring a sense of urgency no matter the market condition. Auctions accomplish this by bringing many buyers together at one moment in time and thus bringing pressure to the economic theory of supply and demand.
Fifth, it is this author’s opinion that the popularity of auctions is directly due to the internet, EBay, PBS the Antiques Roadshow, Cash in the Attic, and similar platforms. Greed is still the buyer’s motivator. As for sellers, one might have an unknown trove of money in their attic and now the ability to sell it for great wealth via the electronic auctions of the internet and television. People tend to seek the avenue of least resistance. Certainly, we’d all rather find wealth in our attic - other than work for it.
Sixth, all is not equal at the auction. Later in this writing, this point will become the grist for a possibly bleak prediction regarding the future of the auctions of real property in the US. The law of averages suggests that more money will be made in an arena of many buyers vying for a specific property than one or two buyers negotiating across the desk of a broker or even directly with a seller for that same property.
Equality is the real thorn to look for here. Are the terms and conditions of the auctions of real property equal at an auction? Could this very point become quite the stickler? Remember, the old adage, ‘Fool me once, shame on you… Fool me twice, shame on me.”
The authors of Super Freakonomics in their first publication, Freakonomics, pointed out that many businesses exist due to asymmetrical information – or more clearly put, one person can charge another person a fee to provide information not readily available to all consumers. Travel agents once provided the service of checking fares, times, and schedules for a percentage of the tickets sold. Physicians offer closed information services for money to their patients. Antique dealers sold limited availability goods to consumers because they had access to a source – specifically the goods.
Now enters the internet and information access to all that care to use it. Remember, there are now virtually no travel agents left in America. Physicians are now being questioned by their no longer sheep-like patients who are armed with conflicting data from sites like MD.com and the like. And, the supply line of antiques is no longer limited to the auction house on Main Street in rural Iowa. One can locate almost any commodity – including real property via the internet information system. This has caused supply lines to swell up for otherwise limited commodities – and consumers to question asymmetrical environments.
WHAT ABOUT THE FUTURE
Auctions are not silver bullets. This is especially true for real property. Only a very few years ago, it was pretty simple to merely prop an Auction sign on a front yard and gaggles of people would be drawn by greed and curiosity to attend the event. Auctioneers were happy, sellers were happy, and buyers felt pretty good about their experience (read Morpace and Harris Polls 2006).
Today, supply lines of real estate properties are swelling at an alarming rate. However, the feed of this inventory to the market-place of buyers is at a painfully slow drip. Banks asset managers are holding on to huge portfolios of real properties that have been repossessed. Further, the New York Times recently reported that many banks in Ohio are no longer taking back the title of foreclosure properties when they get to the courthouse steps after the notice of sale has been posted. In fact, no one is showing up to bid at all. Why might that be?
Further disturbing to the immediate future of Auctions of real property in the United States is a lack of auction law combined with the lack of enforcement for the few laws that do exist. Herein is the reference to the equal playing field comment a little while back.
Approximately 22 states participate in the Uniform Commercial Code (UCC) laws that govern auctions – and only on a state level. The National Association of Auctioneers (NAA) is attempting to clean up the industry on a federal level with the Uniform Auction and Auctioneer Licensing Act (UAALA). NAA seeks to define and implement, as does the UCC, terms and definitions of what should be ethical and legal behavior among auctioneers. (auctioneers.org)
Unfortunately, at the moment there are opportunists that abuse the current standards of law. In particular, auctions that are governed in states that have the UCC in their statutes, mandate that only two types of auctions are legal-ethical: Reserve (minimum bid) and Absolute (sale regardless of price). Moreover, all auctions are considered by default to be Reserve unless disclosed otherwise as absolute by the auctioneer.
This very caveat is what compares many current auctions to the old days of ‘bait-and-switch’ car sales ads. Many buyers might attend a well advertised auction of so-called bank owned property. One property might have a ‘Last Listed Price” (i.e. $315,000.00) a current Brokers Price Opinion of Value (i.e. $190,000.00) and a very misleading ‘Minimum Opening Bid’ (i.e. $19,000.00) – and no statement about being an absolute auction.
Thus, this auction is by default definition a reserve auction. Moreover, neither the auctioneer nor the seller is obliged to disclose the reserve amount in advance. So, an unwitting buyer attends her first auction and is surprised when she has the highest bid at let’s say, ‘$21,000.00’ and believes she will be able to make the purchase of that real property for that gift-like amount above the ‘minimum opening bid’. Unfortunately, in the auction company’s ‘back-room’, the rules of reserve are explained to her and a team of sales people work to ‘flip’ her into a higher priced minimum-reserve purchase price.
Needless to say, she goes away with a bad taste about auctions! Worse yet, less than ten percent of all of these REO ‘auction sales’ results in a closed escrow.
Couple this with the swelling bank Asset Manager’s Portfolio, with the fact that many banks are not even taking title to the tsunami of defaulted properties, with Bloomberg’s dismal ‘shadow effect’ – that the low priced sales of today are merely people waiting for the supply line to dry up and then then en-mass will glut the market again with excess supply properties…
Well, it should be clear, the future of auctions is a best uncertain – maybe even bleak. Unless the supply lines of abandoned property can actually be put on the auction block to allow market conditions to occur (even ones as bleak as this week’s sale of the Pontiac Silverdome – 81,000 seats and 127+ acres of land that sold for $583,000.00!) and unless the government and the national associations pass and enforce ethical and legal guidelines, then only a smattering of properties will ever go to live auction in the near future – at least as compared to all other sales mechanisms.
Nicholas Varzos
www.ExclusivelyAuctions.com
888.826.7310 Mobile
Nicholas@MyNextAuction.com
I’m fascinated by the number of Foreclosures purportedly taking place. I say purportedly, because there appears to be a great deal of ’smoke-and-mirrors’ going on in America.
Have you actually stood on the courthouse steps and attended an ‘auction’ or real estate for a trustee sale? In most cases, there is NO auctioneer… merely an employee, often a newspaper publisher’s employee, that is going through the motions of the auction. Generally, no bidders are there… and more pathetic are the few sad neophyte bidders that might show up only to walk away empty handed as the lender’s minimum bid or reserve on the property is so out of whack with the market that it could make one think that the lender actually wants to take the property back.
What an interesting strategy… the banks used your money in their vaults to create fractionalized lending… now when the loans go sour, they get paid off by a generous government plan (that we taxpayers fund)… the banks with their new found monies or so called bailout loans are not releasing these monies to consumers (us) to purchase real estate or anything else with…
Could it be that the banks want to hold the depressed real estate (essentially for free - courtesy of the taxpayers) and wait to sell it off when the demand line ultimately comes back? Look into the bank REO Holding companies.
I for one think the REO process is a farce. The foreclosure process has failed… in fact, I’ll bet you even know someone that is in default… that collects rents on their property… doesn’t make payments to the bank, due to the soft market… and the bank hasn’t even started the foreclosure process because they already own too much real estate in their holding companies.
Sigh… what’s your opinion?
Auctions to be Held for Luxury Homes in Vail Valley, Colorado: Neighborhood to the Rich and Famous
Celebrity clientele that own luxury homes in the Vail Valley are finding many of their wealthy neighbors selling their homes in a recent onslaught of auction opportunities. The neighborhood is known to be the hang-out of such notables as Kobe Bryant, Kevin Costner, Jack Nicholson, Oprah Winfrey, Tom Cruise, and Donald Trump. For this reason, nearly every major brokerage in the area is joining in the selling frenzy and offering real estate auctions.
Vail, CO (PRWEB) July 13, 2009 — In the next three weeks, luxury homes valued from $3M - $10M will be sold at live absolute auctions — which means to the highest bidder, regardless of the price. This is a true buyer’s bonanza. Previously, this market has been impervious to the decline of real estate values seen elsewhere in America.
Forbes-Sotheby’s prior managing-broker Patrick Mitchell has partnered up with the very successful Exclusively Auctions, a boutique luxury firm, to sell two Cordillera Ranch estates on August 6th. Other firms are following suit include Slifer-Smith & Frampton’s, and Sonnenalp Real Estate.
One seller in Cordillera that is represented by Exclusively Auctions was asked how he could risk the sale of his $3 million home by selling via absolute auction — with no minimum bid and no reserve price. Exclusively Auctions President Nicholas Varzos replied, “Although the seller is underwater, he recognizes that the market is simply down and he may have to settle for less.” “The great news is that like many well invested Americans, he can afford to sell — and that equates to a real buyer opportunity.” “As any investor knows, there are times when you make money — and times when you lose money. The important thing is to move forward and accomplish your goals while not focusing on the short-term loss, so that you can take steps to realize an overall profitable future.”
Vail Valley and the Cordillera Ranch are known for being the hang-out of such notables as Kobe Bryant, Kevin Costner, Jack Nicholson, Oprah Winfrey, Tom Cruise, and Donald Trump. Yet despite such wealthy notables propping up the values, this limited-opportunity resort property is feeling the pinch of the economy. Ms. Devine has just released news of another luxury home auction being held on July 28th — valued to $3 million.
For anyone looking to obtain some luxury homes and ‘ritzy’ real estate deals — it may be time to look to the Vail Valley. They can pick up the phone and contact almost any broker in town. All are ready to stimulate the market in any way possible. Because of the absolute auction process buyers name their price and steal a property for true market value — at least as far as the National Association of Auctioneers (NAA) is concerned.
“Real estate auctions make for great opportunities!” Varzos adds.
I have noticed a remarkable phenomenon - others have as well. I believe that the morality or ethos of business is to make a profit. This is not human morality. It is a human creation. I recall arguing the problems this brings during my college days. I also remember my professor telling me I was unrealistic.
A couple of days ago, I read an article in the New York Times. An economist writer, with a degree in economics, mentioned his current dilemma… despite all of his ‘economic education’ from professors that were much like mine above.
The writer earns some $8000 per month on staff at the Times. Seems sufficient to get by. Unfortunately, a few years ago he got divorced and was required to pay some $5000 per month for child support and alimony to his ex-wife. With approximately $2700 per month in hand, he marries a new woman and they bought a home together and ‘promised’ to pay the bank $3000 per month in payments. Yep… he’s now cash short every month.
So… what does this have to do with Real Estate Auctions? I’ll get to that. He covered his shortfall everymonth by using his credit cards. To cut to the chase, he’s amassed a huge backlog of consumer debt, and it’s been roughly one year since he’s made a payment on his home! (by the way, the bank has yet to start foreclosure due to the huge backlog of others like this fellow) Such wonderful business ethos! He’s making a profit - every month - at the expense of the banks, you, me, and everyone else in our society. What a clever consumer… what a successful businessman.
And indeed, what a horrible human morality. The avenue of least resistance is something many often take in life. Maybe it was easier to take a horticulture class, when what one really needed was a math class that taught ratios, the slope of a line, and why those calculations would help us later predict our own futures. Many may marry the first person that comes along, rather than wait for the ‘right’ love of their life.
I recall telling my daughter as she was growing up… ‘work hard now, or you’ll work hard forever.’ It had to do with taking the better choice - which was not always the easy path. It often was a more moral path too.
As an auctioneer, I am recently troubled by the number of people I meet that are looking for easy, guaranteed paths - and someone to make the decisions for them… and not because they don’t know the truth or what the correct answers are for them. Our society has a portion of its membership that has broken down. They are quitters that are either afraid to work hard to be right or they lack human morality.
The question is simple. Is man good or bad? Optimistically, I believe that we are generally good. I also recognize that many are not. So… what does that have to do with auctions and selling or buying?
I find the decisions many sellers are making today about how they sell their home, walk out on their debts, or live with their committments is a reflection of their ethos in action.
I think its time some of us start to work hard now - to employ a more human ethos.
President Obama is now in the oval office and the time to begin delivering on campaign promises begins now. That’s why MyNextAuction.com, an online auction provider, announces they are ready for the auction action.
The country is anxious to see what changes will arrive with the new president. During the campaign, the foreclosure crisis was a primary focus and President Obama promised resolve and relief. So, what measures will be taken?
Whatever the immediate action, MyNextAuction.com, is ready to help. According to a recent Associated Press article, President Obama says that urgent action is needed to address the slumping economy and there’s still time to take dramatic action.
Most recently, President Obama’s top economic advisor reported that the remaining $700 billion in financial rescue funds will be used to support the credit markets for businesses and families and to help reduce home foreclosures. “Our goal is to work with all groups - seasoned real estate investors and first-time home buyers”, says Nicholas Varzos of MyNextAuction.com. We have a team of real estate experts who are ready to educate consumers about what to know before purchasing a foreclosure; show them how to steer clear of scams; explain liens; and more.
So whether you are a buyer, seller, or spectator of this current phenomenon - stay in touch with MyNextAuction.com or call and ask for answers.
Recently, a local Broker in the Tahoe area decided to try his hand at conducting a couple of auctions for one of his better clients. One auction was for a lakefront property that had been build over budget. The other property was a set of plans for a duplex of sorts and included the footings in-place.
Both Auctions were held as reserve. The first auction, that included the lakefront, was a very nice property that was ‘hedged’ by the broker. That is both he and the seller would not disclose the ‘reserve’ or minimum acceptable bid. Some 30 people attended the auction. Most were neighbors, friends, a few other agents, and 2 or 3 registered bidders. A dapper auctioneer in his best tuxedo stepped up to sell the place. He tried to get $5M, dropped to $4M … then $3.9M. A consult was called and after some talking… he came back to open the bidding at $3M. No hands. No offers. No Action. - All because, there really was NO AUCTION.
Real auctions start at $0 and move up to the market value. Anything else is merely negotiating buyer and seller - vs true auctions that negotiate buyer vs buyer.
Well, what about the duplex. It was offered one month later at a ‘reserve auction’. THIS time the seller/broker decided to let the public know the reserve amount. Again… no bidders. No sale. NO AUCTION.
Compare this to another auction in Lake Tahoe where a number of multi-million dollar lakefront residences were ALL SOLD in about 20 minutes… Why? How? All were sold at a true Absolute Auction. Buyers decided the value on the day… not some pie-in-the-sky seller, not some appraiser with his opinion… just the truth of the market-place. One buyer vs another buyer… let the highest bidder win… and let the games begin!
Real Auctions do happen even in Lake Tahoe… you just have to look for the real deal.
In today’s climate of growing consumer skepticism as well as consumers that are more informed by web access documentation, the reserve auctions are falling into a category of dinosaur extinctions. Consumers want the truth of the market place for all goods. As such, across America, we are seeing declining audiences at Reserve Auctions and both animated and increased attendence at Absolute Auctions.
