Get a deal at a condo auction in New York City

February 9, 2011 4:09:26 AM PST
Real estate developers hope condo auctions can help get the market moving again in New York City.

Soaring high above the skyline of Long Island City stands a luxury high rise condominium waiting for its first occupant. But developers hope on February 13th that will change. Not with one or two new owners at East River Tower, but as many as 26 all at once. They hope to do it in a condo auction.

The oldest real estate auction company in the country hopes to generate some excitement in New York City. Now, Sheldon Good & Company hopes in this down market. New York City is about to embrace another way of selling and buying condos.

"Absolutely, I believe that the auction process will become a common place marketing alternative for properties of all kinds," said John Cuticelli, the CEO of Sheldon Good & Company.

Developers are putting 26 one and two-bedroom apartments up for auction out of 74 available units in the LIC building.

To further create a buzz, the company is also auctioning off 22 one, two and three-bedroom condos at an already occupied building in Washington Heights. The properties in the two buildings will go on the block within hours of each other in the same room at the Roosevelt Hotel. The auction company says buyers could see big savings. Some prices starting at 66% off their original appraised price.

One-bedroom condos in the LIC building feature granite counter tops, the latest kitchen appliances, and good size rooms with great views . The opening minimum bid is $195,000.

But at least one highly regarded real estate appraiser tells Eyewitness News he is not sure condo auctions are a trend just yet. At Miller Samuels Real Estate appraisers, they say we have not seen the widespread use of auctions in single family homes and unlike the early 90's where it was widespread in the co-op market, auctions have not taken off in the condo market, but that could change.

"It's is not a trend yet. We are going to see more of it. But it has not been established yet," said Jonathan Miller, a real estate appraiser.

To participate in this auction, prospective buyers can go to the Sheldon Good & Company website and register. All must be preapproved and bring a certified check in hand for 10% of the price of the minimum bid of their desired unit. A recent auction in Maryland drew more than 500 bidders.

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