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Real estate auctions to feature pricey digs

New homes, fractional ownership available at Lone Tree events

By John Rebchook, Rocky Mountain News (Contact)

Published July 31, 2008 at 9:05 p.m.

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1483 E. Fair Place, Centennial * $2.45 million * 6,700 square feet * 5 bedrooms, 5 baths, 3 fireplaces

1483 E. Fair Place, Centennial * $2.45 million * 6,700 square feet * 5 bedrooms, 5 baths, 3 fireplaces

5544 Snowflake Way, Parker * $1.4 million * 5,000 square feet * 4 bedrooms, 6 baths

5544 Snowflake Way, Parker * $1.4 million * 5,000 square feet * 4 bedrooms, 6 baths

1610 S. Fillmore St., Denver * $1.05 million * 2,900 square feet * 4 bedrooms, * 3 baths

1610 S. Fillmore St., Denver * $1.05 million * 2,900 square feet * 4 bedrooms, * 3 baths

2454 Castle Butte Drive, Castle Rock * $3.2 million * 4,766 square feet * 4 bedrooms, 4 baths, 3 fireplaces

2454 Castle Butte Drive, Castle Rock * $3.2 million * 4,766 square feet * 4 bedrooms, 4 baths, 3 fireplaces

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Custom home builder Darryl Wagner said he has the same misconceptions of home auctions as most people.

"I'm guilty of it myself, thinking that auctions are for fire-sale or garage-sale prices, and they're for bank-owned

homes in the $150,000 to $200,000 price range," said Wagner, a principal of Lakewood-based Sonoran Custom Homes.

But from 1 to 6 p.m. Sunday at the Lone Tree Golf Club and Hotel, Wagner is listing three of his expensive homes in a Western Real Estate Auction.

The auction will feature new homes priced from $375,000 to $3.2 million in Centennial, Castle Rock, Denver, Parker, Arvada and Golden. The average price of a home is around $1.5 million.

On Aug. 17, starting at 1 p.m. at the Lone Tree golf club, Western Real Estate will auction six ski-in, ski-out fractional ownership homes at Granby Ranch near the Sol Vista ski lift, said Mark Bulla, a principal of Western Real Estate. Fractional ownership is similar to time-share, offering a deeded interest in a percentage of a home.

"As best we can tell, we're the only ones in the country auctioning new fractional ownership properties," Bulla said. "You have a chance to get 12 weeks a year in a ski-in and ski-out, with bidding starting in the mid-$100,000s. This is the kind of vacation place a regular person can afford."

However, Jim MacDonnell of the Denver office of Sheldon Good & Co. said the Chicago-based auction firm was the first in the U.S. to auction fractional-ownership properties. He said Sheldon & Good sold $16 million in fractional properties in Park City, Utah, in 2003 for American Ski Co., $2 million in 2007 for Noel Lane (the former owner of Melody Homes), and $7 million in Teton Club in Jackson Hole, Wyo., in 2006 and 2007.

There's nothing new about new homes going under the gavel.

Kennedy Wilson, an auction house based in Beverly Hills, Calif., for example, has had a new-home division since 1977.

"In a strong housing market, we're not so busy. In a down market, we're really busy. We're getting busier every month," said Rhett Winchell, head of that division for Kennedy Wilson.

On July 20, for example, Kennedy Wilson auctioned 45 condominiums in Santa Fe. The units originally were listed from $189,000 to $310,605. Most sold from about $140,000 to $225,000, he said.

Typically, Winchell said, the minimum price of a new home is 60 percent of the asking price. If a builder could get 90 percent of the asking price, he'd probably sell it outside of the auction, he said.

Auctioning homes works particularly well with standing inventory, Winchell said.

"If you thought you were going to sell 10 homes a month and you're selling one home a month, the advantage of an auction is is you can sell all of your homes in one afternoon. Even though you get less than you expected, you can save an entire years's worth of carrying costs," he said.

At Sunday's auction there will be undisclosed reserve prices, so the builder can reject low-ball offers.

Wagner said his reserve prices will be close to his net cost of building.

"If someone offers me $500,000; I'll just say no thanks," Wagner said.

Things you need to know

* When: The auction will be held from 1 to 6 p.m. Sunday at the Lone Tree Golf Club and Hotel, 9808 Sunningdale Blvd.

* Price range: Homes are priced from $375,000 to $3.2 million.

* Bidding: Those interested in bidding should pre-register by today by calling 1-888-733-3387 or 720-810-9368.

* To be eligible: To receive a bidder number you need a cashier's check for $2,500, and you must be pre-qualified.

* Information: easiestauctions.com

Comments

  • August 1, 2008

    9:33 a.m.

    Suggest removal

    mlbdenver writes:

    Pretty sure the pictures are mislabeled. 1610 S. Fillmore is not in the middle of a large undeveloped area.