Uh Oh

IMG_7078, originally uploaded by Prince of Petworth.

I’m seeing a few of these signs popping up around Columbia Heights just east of 11th Street. Yet prices still seem to be fairly high. So explain to me how we can be having auctions at the same time as prices remaining high.

4 Comment

  • Its most likely for the overbuilding of condos. Builders are trying to get rid of extra units by auctioning the off.

  • I saw a report on ’60 Minutes’ not too long ago that said banks initially try to auction off foreclosures for at least what is owed on the mortgage. So, if the property was bought during the peak of the real estate boom, the payoff on the mortgage might not necessarily be a bargain or reflect the current market.

  • I went to some real estate auctions at Alex Cooper. Just to clarify, the starting bid is not zero. So, no one is going to walk away with a great condo for $100K or anything like that.

  • Actually, auctions are theoretically a very efficient method of off loading excess. Point is, price it well and it will sell. However, define a good price.

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