Update: Anson House Condo Auctions

Update May 31, 2012 – These three condos sold yesterday/today  – two of them were bid on at the auction but the bids were not accepted.  So here’s your baseline folks. The owners won’t sell for less than this.

1011905 – Details: 2 LAURENS ST, #3F, CHARLESTON, SC – $605,000

1011943 – Details: 2 LAURENS ST, #2B, CHARLESTON, SC – $761,000

1011950 – Details: 2 LAURENS ST, #4F, CHARLESTON, SC – $1,500,000

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Update May 3, 2012 –  The remaining condos just came back on the market with price drops. Here they are – and I put the pre-auction price to the right for comparison.  The notes say that all offers must be for full list price.  What do you think?

1011840 – Details: 2 LAURENS ST, #1E, CHARLESTON, SC – $495,000 – $550,000
1011893 – Details: 2 LAURENS ST, #2E, CHARLESTON, SC – $580,000 – $650,000
1011915 – Details: 2 LAURENS ST, #1C, CHARLESTON, SC – $769,000 – $825,000
1011919 – Details: 2 LAURENS ST, #3H, CHARLESTON, SC – $795,000 – $895,000
1011922 – Details: 2 LAURENS ST, #3C, CHARLESTON, SC – $825,000 – $1,025,000
1011927 – Details: 2 LAURENS ST, #1D, CHARLESTON, SC – $825,000 – $875,000
1011938 – Details: 2 LAURENS ST, #4C, CHARLESTON, SC – $1,100,000 – $1,295,000
1011944 – Details: 2 LAURENS ST, #4B, CHARLESTON, SC – $1,200,000 – $1,595,000
1011947 – Details: 2 LAURENS ST, #4A, CHARLESTON, SC – $1,300,000 – $1,895,000

Or Click Here to go view all listings at once.

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Update May 1, 2012 – These came back on the market today and then went under contract. Either they were presold before the auction, or those that bid on them at auction went back and offered a high price. It will be interesting to see what they sell for!

1011848 – Details: 2 LAURENS ST, #2F, CHARLESTON, SC – $650,000
1011905 – Details: 2 LAURENS ST, #3F, CHARLESTON, SC – $795,000
1011943 – Details: 2 LAURENS ST, #2B, CHARLESTON, SC – $1,395,000
1011950 – Details: 2 LAURENS ST, #4F, CHARLESTON, SC – $2,495,000

Or Click Here to go view all listings at once.

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I wish I had 90 minutes of my life back.  And I am sure 150 other people, some of whom drove or flew from cities around the Southeast, do too.

This is an update to my original post: Anson House Auctions April 30 – A Heads up.

The auction site at the Maritime center was rockin and rollin by 2:30PM.  With live music, an open bar and sandwiches, the National Auction Group knows how to do it right.  It was standing room only, with approximately 15-20 people holding bid paddles, ready to buy their luxury condominium Downtown.  Even though the fine print read that the seller had a right to refuse any bid, surely they would be reasonable right?

The auction started, highest bid got first choice, the bidding started again – highest bid got the next choice etc…We went through 8 rounds of this. Down went 4F, down went 4A, and so on.  Below are the latest for sale listings and their winning bid price that was posted on a spreadsheet on a big screen for all to see under the SOLD column.  Please note that on top of these prices a 10% Buyers Premium and about $4000-$6000 would be added on top to build up the HOA reserves.

1011840 – Details: 2 LAURENS ST, #1E, CHARLESTON, SC – $550,000
1011848 – Details: 2 LAURENS ST, #2F, CHARLESTON, SC – $650,000
1011893 – Details: 2 LAURENS ST, #2E, CHARLESTON, SC – $650,000
1011905 – Details: 2 LAURENS ST, #3F, CHARLESTON, SC – $795,000
1011915 – Details: 2 LAURENS ST, #1C, CHARLESTON, SC – $825,000 – $525,000
1011927 – Details: 2 LAURENS ST, #1D, CHARLESTON, SC – $875,000 –
1011919 – Details: 2 LAURENS ST, #3H, CHARLESTON, SC – $895,000 – $525,000
1011922 – Details: 2 LAURENS ST, #3C, CHARLESTON, SC – $1,025,000 – $535,000
1011938 – Details: 2 LAURENS ST, #4C, CHARLESTON, SC – $1,295,000 – $550,000
1201195 – Details: 2 LAURENS ST, #1A, CHARLESTON, SC – $1,350,000
1011943 – Details: 2 LAURENS ST, #2B, CHARLESTON, SC – $1,395,000 – $660,000
1202371 – Details: 2 LAURENS ST, #3B, CHARLESTON, SC – $1,495,000
1011944 – Details: 2 LAURENS ST, #4B, CHARLESTON, SC – $1,595,000 – $575,000
1011947 – Details: 2 LAURENS ST, #4A, CHARLESTON, SC – $1,895,000 - $750,000
1011950 – Details: 2 LAURENS ST, #4F, CHARLESTON, SC – $2,495,000 – $1,200,000

After we got through these 8, the auctioneer announced that these prices were vastly different from what the seller wanted, so no sales would be made, but people were welcome to come to the back desk to make higher bids.

I get that 2D sold recently for $900,000, but there are only so many people out there who have that kind of money, and want to use it in that location. I wish them the best of luck in selling the condos in the next 3-5 years, as they’ll be surrounded by construction noise and piling drivers day in and day out.  Welcome to a potential new cruise terminal, a new senior living high rise, some potential new luxury condos, and a 40-acre swath of mixed use developments. After that, they’ll be golden.

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5 Responses to Update: Anson House Condo Auctions

  1. roskilan says:

    There are also only so many people that can buy properties with NO contingencies, completely as is, AND close within 30 days. With these conditions, it would seem reasonable to expect that one might pay slightly below market … which if you take the “winning” bids, add on the 10% buyers commission, is pretty much where the bids came in. The auctioneer said the bidders were being unreasonable and that these were 2-3 million dollar condos…perhaps in another day and time, not today. Indeed, in today’s market what the legacy asking price of an overly exuberant developer is frankly irrelevant.
     
    After the announcement that the “winning” bids were not acceptable, rather than negotiate, the room simply cleared out. It was all quite surreal. The lesson: do not waste your time again at auctions that are not “absolute” or at least have a reserve price posted. Otherwise, why bother openly bidding against others when you can simply make an offer directly.
     
    You are right that the owners will be sitting on these properties for some time. 

    •  @roskilan You are dead on with your perspective. It’s embarrassing that these buyers, making reasonable bids given market conditions, left empty-handed. And the fallout from this will be much greater than anyone knows, as there will be a negative domino effect on A. Other projects in the works and B. Those current owners who hope to refinance, or finally have some relief.

  2. schughes says:

    I’m starting to notice a trend of thinking in our society that is disturbing.  I first noticed it with college graduates, but I believe it applies here as well.  When the recession hit and people were graduating without jobs lined up, many took whatever they could get and kept going until they could get into something they wanted.  However a good portion of those graduates felt they needed a certain level of job in order to justify how they spent their recent past and their recently departed college funds/loans.  Unfortunately, many of those same people have continued to wait in vain due to two important factors: the level of market demand for them and the continuous replenishment of supply.  This thinking is that if I wait long enough, I can cover my losses and get to where I need to be.  Unfortunately this line of thought tends to ignore carrying costs, ongoing expenses, and constant new additions to the supply line.
     
    The past several years the level of market demand and the specific types of demand have changed, not unlike the real estate market.  Once upon a time, your typical non-technical or non-science major could line up an acceptable job upon completion of the degree with little issue.  As with all things on this Earth, the only constants are the progression of time and change.  This is no longer the case and for a plethora of reasons, but those do not matter here.  They do not matter because the only thing that does matter is completing the sale, the offer and acceptance of a job.  What is true though is that there is a lot of supply to burn through and because of that prices have come down (wages) to meet smaller demand, thus forming the current market.  The reasons are irrelevant because they are not fleeting.  In addition, every 6 months a new batch of supply hits the market, without any corresponding increase in demand.  The image of a partially clogged drain that causes a sink to back up over time comes to mind.
     
    The exact same goes for the real estate market and this project is an excellent example.  Once upon a time, these condos would’ve sold well because people could get access to money easily, the prevailing thought was it can only go up in value, and there will always be a market at this level.  I’ll say it again, as with all things on this Earth, the only constants are the progression of time and change.  The reasons for the change are numerous as well, but the reasons do not matter because they too are not fleeting.  The only thing that matters is that there are no longer the market or the able, ready and willing buyers to sell these condos, especially at anything remotely resembling the list price.  In addition, supply in continuing to pile up between foreclosures, regular/normal sales, new projects, and other existing projects.  It is anorther clogged drain.  Their failure to adjust prices to reflect increased supply and much lower demand is a mistake and a big one at that if they have any pressure to get these off their books any time in the next several years. 
     
    As I said yesterday, good luck to them.  They will need it if they can’t see and comprehend the environment around them.  Supply and demand meet to form the market, you can either address that or look incompetant chasing something that no longer exists.

    •  @schughes Sean thanks for your great analogy! Here’s where the disconnect is, and why the sellers must be having difficulty wrapping their mental arms around lower prices. There ARE luxury condos selling in Charleston.  Since the beginning of the year, these three have gone – each no larger than the average Anson House, and saddled with $1500+/month in Association dues. 36 PRIOLEAU ST, #O – $1,625,000,  32 PRIOLEAU ST, #P – $1,808,000, and 18 BROAD ST, #701A – $2,300,000.  Since January of 2010, there have been 12 $1M+ condo sales total – 6 in Vendue Range, 2 at Fort Sumter House, 2 at the People’s Building.  The predominant feature of all of these $1M+ condos is VIEWS, and a central location.  If you are a bit further out, you better have some amenities like the pool at Fort Sumter house.  Unfortunately, the Anson House is lacking in both of those. The views are mostly peek-through (and about to change significantly on half of them), and the only amenity is a doorman. 

  3. chrislovessushi says:

    Really enjoyed the article and responses!
    <a href=”http://charlestondreamhouse.com”>Charleston Dream House Blog</a>

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