Discounts at Manhattan home auction hit 85%

Uh, not one of these is a formally accepted offer (the seller has to approve), so nothing's actually sold. Don't you ever get tired of doing this?

wow, bjw, you really are obsessed with me...

You're right, I'm not allowed to post anything in response to you. Once you're over yourself, maybe you should just make sure you post things more accurately, no matter what headlines might state.

Hah...another misleading headline!

sorry, no, I won't be your friend, no matter how much you follow me around and keep posting.

"You're right, I'm not allowed to post anything in response to you."

and, ironically, thats exactly what you whined and cried for yourself!

i love it!

"Hah...another misleading headline!"

Feel free to call up Crain's and complain....

that would put all the lemmmings units at like 70% under water.. oh shitz.. whose the striver th buyer? he only put in 5%.. making him the poster child for Fha moronisy with 80% under and FHA owning that beeetch outright.. nice going...

I've been accused of doing things to my detriment, but never of being such a masochist to be friends with such a curmudgeon, so, no. Try again.

Anyway, back to the misleading headline - is this Bid on the City just a big sham? Can't feel good to have someone offer you $50k, and unless you're looking at bankruptcy, not sure why you'd accept.

Makes me think about those "buyers aren't being realistic" posts.

ha ha.

> Try again.

I'm sure you will... over and over and over again. You have for months.

"Feel free to call up Crain's and complain...."

Sure, but don't propagate it yourself. Doesn't really lend itself to helpful discussion if we're being disingenuous off the bat.

Wow, this was the most pathetic article I have ever read. Why are they even reporting silly lowball offers made by vulture buyers that will NEVER be accepted by the sellers?

somewhere, the "try again" was for you. Capisci?

"You have for months."

What? You're tracking my posts? I thought I was "obsessed"? Whoops.

1) they aren't just lowball offers, they're the results of many bidders at an auction. If you can't tell the difference..

2) feel free to complain in the same manner when folks note asking prices as evidence of trends (hint, it happened an hour ago on the board)

3) if you think what buyers are willing to pay is not relevant, then you don't understand market dynamics, and anything you say after that point about where pricing is heading would be pretty much meaningless. Granted, we already knew that was true with you.

mmmmmm.... seller "auctions"... signals desperation.....
buyers bid => mkt for sellers signaling desperation. So if your bank decides to "auction" then the bids will come in around 8-5% last ask...

seems a data point... especially given sales to listing borkers in new developments were counted on the way up, no?

> You're tracking my posts?

Nah, its difficult to miss you trying to hump my leg after every one of my posts.

> I thought I was "obsessed"?

exactly

-85% ya knowz...

> -85% ya knowz...

it is pretty funny to see how many folks want to spin this. this wasn't "an offer", this was an auction.

its getting funnier and funnier by the post.

"they're the results of many bidders at an auction"

16 according to the article, plus an unknown number online.

"feel free to complain in the same manner when folks note asking prices as evidence of trends"

Definitely. Asking prices mean squat. But most people don't use them in any real sort of analysis. Not saying it doesn't happen here from time to time, but pointing your finger at them as an excuse for posting this fairly dumb article isn't going to cut it.

"if you think what buyers are willing to pay is not relevant, then you don't understand market dynamics"

The only point you made that's reasonable. But frankly it's all speculation until something actually sells.

"seems a data point... especially given sales to listing borkers in new developments were counted on the way up, no? "

well, thats the problem. its data.

Don't you know some people don't like data! Fear DATA!

its also funny, how many articles about bidding wars got posted here. We have, really, the opposite, and what happens.

Ignore it! Ignore it! Pay no attention to the man behind the curtain!

Data on what? Nothing sold. I can offer or ask any amount on any property and you can collect it to high heaven, but does it really tell you anything? Sorry.

"Nah, its difficult to miss you trying to hump my leg after every one of my posts."

Yeah, that or you're just delusional/projecting. Good stuff.

Who said ignore it? It's marginally interesting, sure, but at the very least place it in the proper context instead of buying into the deceptive headline.

bj... it's a failed auction.. .that's not data? How about a mkt with HUGE bid/ask spread? that's not data?

w67th - if the bid isn't accepted it is useless as evidence of the market.

I thought they set some sort of minimal bid price on these properties. I would be pissed if I waited around all day, made that top bid and it wasn't accepted.

thing is, its not just one bid, its the highest of multiple bids in a highly publicized auction.

Amazing how much folks really, really want to downplay... a *failed auction*. This isn't a bid that wasn't accepted, this was a full blown auction, a good indicator of the willingness buyers (one one buyer, buyers) are willing to pay.

> it's a failed auction.. .that's not data? How about a mkt with HUGE bid/ask spread? that's not data?

Bingo.

Even the stock market lists the spread....

> w67th - if the bid isn't accepted it is useless as evidence of the market.

If its the highest bid of many in a publicized auction, then it absolutely is.

What's funny here is how so many folks of a certain belief are trying so hard to play down this "stupid" article, posting about it over and over again.

Seems like a nerve was hit.

"If its the highest bid of many in a publicized auction, then it absolutely is."

No, it's an indicator of how crappy this property is. If this occurs X times over, then it *may* be something. Until then, it is not meaningful on its own merits.

> If this occurs X times over

Uh, it did.

The article notes numerous apartments that had top bids at a fraction of the original asking.

I'm not sure why folks are trying to hard to pretend this is just one bid and/or sweep this under the rug.

And I'm not sure why some people are trying to make this seem like a bigger deal than it is.

The title at Crains NY was misleading since the deal did not go through but it should be a valuable data to the seller! That their place is really undesirable and people are only willing to bid $50K for it. haha!

It would suck to be that owner, that's for sure.

"Bids in increments of $100,000 were accepted for a townhome at 9 West 126th Street near Marcus Garvey Park in Harlem, which had an original price of $1.65 million. Bidding closed at $400,000, according to Mr. Carter. Similarly, an apartment at 147 West 142nd Street, which was originally priced at $445,000 was auctioned off for $50,000. "

mimi, was it you the one that big on that townhouse $400k?

"Mr. Carter recorded 10 properties that were auctioned off, but it was unclear whether Bid on the City managed to auction off every property. Later this month, the company will launch its first Hamptons auction, which will feature rental properties. That auction will be broadcast live on Plum TV, a 24-hour lifestyle network."

i would like to watch those auctions. they are a great to make the price adjustment downwards less sticky imho. not bad for buyers!!! not-so distressed sellers will just have to wait to sell after all the short-sales, REO and auctions are done with as they will produce low comps.

One problem wit Bid on the City is that their ads are very misleading. They have billboards all over the place, including NJ, leading people to think they can buy real estate for as little as $1.

isn't it fair to say that if it is known that they will not be accepting bids that don't reach undisclosed target levels that the whole thing becomes less meaningful because a lot less people will bother to show up and bid.....?

when it is understood that there undisclosed target levels are percieved as fairly high

president..the misleading thing about the 1$ is not that it makes people think they can buy a place for 1$ truly, but that it implies there is no minimum price when apparently there is

43 comments and counting.

Quite a lot for a "stupid post" with no data.

"No, it's an indicator of how crappy this property is. If this occurs X times over, then it *may* be something. Until then, it is not meaningful on its own merits."

For the second time, it was multiple bids on multiple properties, with apparently 100+ folks who gave credit cards.

Clearly this must be hititng a nerve if folks are being deceptive about it, claiming its just one bid and one property.

"And I'm not sure why some people are trying to make this seem like a bigger deal than it is"

There was no need to do that... I posted it and quite a few people tried to jump on me and say it was "meaningless".

When that happens, with such vigor, you know its anything but.

"43 comments and counting.
Quite a lot for a "stupid post" with no data."

Are you judging a thread's intelligence by the number of posts? Now that is legitimately stupid.

"When that happens, with such vigor, you know its anything but."

Sorry, you just don't like getting your feet put to the fire, or merely being questioned for that matter. If you actually had some way of tying this auction out to some actual evidence of properties moving at bargain prices, this could actually be interesting.

wow, you really ARE obsessed.

Cool, so when you have no response, you resort to pointless bs like the above. Glad we can agree this article doesn't mean all that much.

"I posted it"

Yes, it's all about you...as are all of your posts.

If bids are consistently not accepted I'd expect that buyers would soon loose interest in such auctions.

Excellent point... or, the bids start getting accepted. If thats all buyers are willing to pay... clearly some sellers are going to be more desperate than others.

"I'd expect that buyers would soon loose interest in such auctions."

There would have to be interest in such auctions to lose interest in them. These guys aren't exactly eBay. What does it tell you if only one person bid? There isn't interest or that no one gives a shit about Bid On the City?

Of course, since it wasn't just one bid - that seems to be something made up by someone who dishonestly tried to downplay this - not sure how much that means.

The reports said it was over 100 bidders for just the 10 properties....

> There isn't interest

Well, if there isn't interest in buying RE, doesn't that tell you something else?

Clearly this thing has been marketed all over the place.

100 registered bidders for 10 properties and we get hilarious comments like "its the highest of multiple bids in a highly publicized auction." Unreal.

this auction was a joke compared to the actual distressed property auctions held in miami for example...where lots of properties were really sold...bjw's points are well-taken...

why bother making a mountain out of what is a molehill...

"Well, if there isn't interest in buying RE, doesn't that tell you something else?"

I'm sorry, you make this judgment on a grand total of 10 properties, when there are sales happening all over the city that show that there is interest in buying real estate? Completely bogus.

"Clearly this thing has been marketed all over the place."

Poll fifty people. What do you think the over/under is for people who have actually heard about it? "All over the place" is pushing it.

IMHO that article is a total joke.

Complain to Crain's about both the headline and the reporting.

Do you not find it odd that this is written based on what an industry observer (a Rutenberg salesperson) saw? Is it not slightly troubling that the auction company had no comment, and that none of the reporting was based on official info, public records or has even been validated by the buyers or sellers of the properties?

mmm....I wouldn't characterize these offers as "prices" but I do think informnation on how much money qualified prospective buyers are offering to pay for apartments does qualify as news.

You may not like the news, but it's news.

I would have framed the story differently. I would have said the offers at a recent auction were, across all neighborhoods and property types, significantly lower than sellers' asking prices.

Also, bidders are auctions are highly qualified buyers, yes? I think they have to come with pre-approval from lenders and with a significant amount of cash upfront.

They probably demand a premium for that -- as they should. Not an 85% premium, but still, it's worth something to a seller that his buyer has been cleared for a loan and can move fast.

Personally, I think this is a good sign -- it reveals that the true bid/ask gap is quite large for a big section of the buyside, which is something that sellers have not been wanting to admit.

As for the personal bickering on this thread, ugh, nobody cares. Please take your personal disputes off-list.

"As for the personal bickering on this thread, ugh, nobody cares."

GG, agreed. It is a amazing that a former McKinsey consultant (somewhereelse) behaves in this way. Or is it?

Are the results of the auction proof that the market price should be an 85% discount or, rather, proof of how ineffective and incompetent bidonthecity is in running the auction, creating interest to bring in buyers and in getting sellers to agree to reasonable minimum bids?

How many bidders would it take for it to be a legitimate auction? How many were there at those Florida auctions? Over 100? Really?

I saw a Jim the Realtor video of an auction in Southern CA, and there were not 100 people at those auctions. Maybe I didn't see everyone in the video, but it was clearly a small group of bidders.

Skinny, of course it's a legitimate auction, but in terms of actually telling us much about the market, this isn't that different from collecting people's impressions from 10 open houses. In other words, not a whole lot.

I don't think they are going to get great interest until the can get low minimum bid levels. Is somebody knows they can pay a condo for 60% off as a minimum bid and it will be accepted they would get greater participation. My understanding is that the auctions in Miami had very low minimums.

Maybe Manahttan is different than Miami? hmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm