This past weekend Accelerated Marketing Partners hosted successful auctions at two of Atlanta’s condos – Aqua and Cosmo. In an interview with Jon Gollinger, co-founder and east coast CEO of Accelerated Marketing Partners, we got the facts.
When asked if auctions are the answer to the current over-supply, financing issues, etc. that the market is currently facing? Gollinger responds, “New development real estate auctions are indeed the answer to current market conditions, and Atlanta’s over-supply and financing issues. They’re one of the strongest ways to deliver a critical mass of sales at one time and to spur on post-auction sales at auction-day prices.” He continues, “Both auctions bode really well for Atlanta real estate because they show that there is still a market.”
Aqua auction held 5/16
- 18 units sold on the day of the auction (20 were up for auction)
- $5 million worth of real estate sold in approximately 45 minutes
- The bidders for this auction were homebuyers across the board (ie. no investors)
- This was a virtual close-out sale. It established market value for the building’s remaining inventory which should spur on post-auction sales. (ie, no further auctions planned)
Cosmo auction held 5/17
- 43 units sold on the day of the auction (40 were up for auction)
- $7 million worth of real estate sold in just under two hours
- The bidders for this auction were nearly all homebuyers (mostly first time buyers and empty nesters)
- There is absolutely no plan for a second auction. This sale set the market value for the building’s remaining inventory and phones in the sales office have been ringing ever since.
- Very few units remain. More information is available at www.cosmocondos.com.
Atlanta home buyers looking to take advantage of future auctions to get phenomenal buys on Atlanta real estate should stay tuned. Accelerated Marketing Partners is in the process of scheduling additional auctions in Atlanta, but no details are available at this time.
In closing, we asked Gollinger what he sees as the next steps to reduce condo supply in Atlanta. He states, “The continued use of real estate auctions, which then spur post-auction conventional sales. Auctions provide a transparent forum for consumers to determine market value.”