AUSTIN, TX - A group of Austin condominiums hit the auction block after they didn't sell at the listed price. Sunday afternoon, the final 19 condos at Brazos Place sold. The auction to sell off the building's final units lasted less than two hours. Hundreds of hopeful bidders filled the auction room at the Hilton Hotel in Downtown Austin.
The condos ranged from a one bedroom 623 square foot to the Penthouse with 2,745 square feet. The prices were marked down drastically. Bids started at $80,000 dollars for the smallest unit on up to $600,000 for the Penthouse which was previously at $1,575,000. "I was really nervous about it," said bidder Cecilia Obilom.
The Brazos Place auction is the first for Austin's condo real estate. It was also the first for Obilom and her husband Phillip who hoped to make a profit on their first real estate business venture.
Near the end of the auction, with just three units left, the Obilom's became the highest bidder. After the auction, the two toured their new downtown home together with their broker Alex Ogunmuyiwa.
Instead of paying the listed price of $414,900 for the 1,272 square foot one bedroom, the Obilom's won with a bid of $244,000. "It is an investment property," they said. The Obilom's say they plan on either selling the unit for a profit or renting it out.
Most of the condos like the Obilom's are ready for move-in. Three of the 19 are still in construction. "We got a great deal," said Jim Harris, broker for another winning bidder.
Harris says his client won a nearly 900 square foot unit on the building's seventh floor sold for about two-thirds of its going price. "We were outbid on a few. We managed to grab this one and it was a great deal for us," said Harris.
"The buyers are going to get a reduced price on their home and the builder is going to sell out the inventory. I think it's a win-win situation for everybody," said Rhett Winchell of Kennedy-Wilson, the auction dealer.
There was an additional 4% added to the amount of the winning bid. The expense covered auction and seller expenses. Despite the extra expenses, Kennedy-Wilson says the winning bidders still won a bargain on the going price.
Winchell describes the auction as a large success for Austin. Brazos Place is one of the first condo projects in downtown Austin to sell all of its units. "Obviously there's great opportunity here," said Winchell.
At the auction, there was talk of three more condominiums auctions for three separate projects in Downtown Austin. Details regarding those future auctions were not released.
Source: kvue.com