By Farrah:
New condo developers in Oakland have been forced to find creative ways to sell condos in a market with too much inventory and not enough buyers who can meet lenders’ high standards.
Since the successful Eight Orchids auction, two other condo developments have announced auctions. This Sunday, Shadow Woods in the beautiful East Oakland hills will be auctioning off 33 one and two bedroom condos with a starting minimum bid for the smallest units of $220,000. Next Sunday, the developers of Jade in Downtown Oakland are auctioning their remaining one and two bedroom condos starting at $259,000.
Although Jade isn’t near as many cute restaurants and businesses as Market Square, it has few amenities and relatively high HOA fees, and the units do not have as many high end finishes as Market Square and Broadway Grand; after seeing the results of the Eight Orchids auction, I believe that this auction will be a success. The condos will all be sold for what the market is now demanding. The developer will be happy to have moved the condos for at least 75% of list price and auction winners will get a brand new condo in a decent location for a bit less than the market rate.
You’ll have to bring a cashier’s check or “cash equivalent” for a few thousand bucks and there’s no loan or inspection contingency (you can pay for your own inspection before the auction).
This means that if you can’t get funding or find problems during the escrow period, they won’t give you back your deposit. If you’re at all concerned about your ability to get a loan, don’t buy property at an auction. You should get pre-approved by a lender before the auction to be sure that you’ll be able to get financing in the event that you’re the winning bidder.
Broadway Grand and Market Square are offering more and more attractive incentives to entice you to buy. Market Square is offering to pay six months of your HOA dues and mortgage payments on selected units. And this is what they’ll put on paper, they’re very willing to negotiate terms with interested buyers.
The developers of 200 2nd Street haven’t been willing to decrease their now ridiculously high asking price (i.e. $475K for a 1bed with den). Instead they’re gonna rent out eight of their remaining units (they have maybe 30 or 40 left) and try to wait it out.
Filed under: east bay, farrah wilder, new developments, real estate , east bay, farrah wilder, new developments, real estate
