Special offer

Auction! Auction! Auction

By
Real Estate Broker/Owner with Daytona Condo Realty, 386-405-4408

We have an investor in town buying out cheap condo-hotel units in droves. The condition on the contract is that they can film the unit and market it on the Auction site.

So, I got several offers on the units I have listed in the Fountain Beach Resort and Oceanside Inn. On one of them I already got a call from the gentleman, who claimed that he bought it. I got suspicious, as I knew the buyer was a woman, but he explained to me that he had bought it at the auction. Cool. Especially considering that we have not closed this deal with his Seller yet.Auction! Auction! Auction

First time we had a similar “sale before purchase” 2 years ago, I panicked. Now I keep my cool. They will figure how to do it. Most probably it will be an assignment, and I let my Title Company worry about it.

The “Seller’ of the property that she has not yet bought has way more what to worry about. Condo-hotels require approval and it can take anywhere from a few days to 30 days. So, no, you can’t sell unless certain things have been clarified. Approval is just one of them. Who is responsible for all the stuff we usually do?

It is one thing to advertise on TV and it is very different to do all the paperwork, have all disclosures, and who would do the Contract?

We will see how this unfolds. I am not very optimistic about the whole thing, and I would not be surprised if the TV investor would end up with bunch of unsold units. But on the other hand the market is very active and it should not be a problem, only a small hiccup.

image of Jon Zolsky

Want to buy a condo-hotel with less fanfare and more sense (and no hiccups)? Call me at 386-405-4408.

* Photo by BurnAway via Flickr.com

Mike Cooper, Broker VA,WV
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Interesting, Jon.  I hope there is a part 2 in this one.  I'll be in your neck of the woods 5/12-25.  I hope to meet you in person while down there.  

May 01, 2012 12:57 AM
Anthony Daniels
Coldwell Banker - San Francisco, CA
SF Bay Area REO Specialist

The auction process is certainly a different breed of cat.

Good post, thanks for sharing it.

May 01, 2012 01:20 AM
Tammie White, Broker
Franklin Homes Realty LLC - Franklin, TN
Franklin TN Homes for Sale

Hmm, interesting to see the different properties available in different parts of the country. Didn't even know you could buy a hotel-condo.

May 01, 2012 01:38 AM
Bill Gillhespy
16 Sunview Blvd - Fort Myers Beach, FL
Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos

Evening Jon,  I guess auctions are a viable option but buying them in bulk and trying to do a quick flip is really risky.

May 01, 2012 10:35 AM
Mike McCann Nebraska Land Broker
Mike McCann - Broker, Mach1 Realty Farm & Commercial Land Broker-Auctioneer Serving Nebraska - Kearney, NE
Farm & Commercial Property For Sale 308-627-3700

I would think that selling before owning would have some dangerous potential results...but hey...your job is the first transaction...but I wonder why the 2nd buyer did not come to you first?  

May 01, 2012 02:14 PM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Condo-hotels sounds like they have added complications.  I also thinks there's a problem in trying to sell a home you don't yet own.

May 01, 2012 02:24 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Christine - anywhere from low $30s to $400K depending on the building and size. But low priced units are going fast

May 01, 2012 03:15 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Bob - South West Florida is always ahead of us, so this is not surprising

May 01, 2012 03:16 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Mike (19) - yepo, more to follow. Do you like Thai food?

May 01, 2012 03:18 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Anthony - it truly is different

May 01, 2012 03:18 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Tammie - you won't find them everywhere. A lot of them are in Honolulu, and quite a few in Florida.

May 01, 2012 03:19 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Bill - at least we can agree that it is a gamble. Would be interesting to watch. Meanwhile on two transactions I got the request to extend Closings by 2 weeks. Do not know whether it means that there is a problem, but we will see.

May 01, 2012 03:21 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Erica - Ain't I ? (LOL)

May 01, 2012 03:21 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Mike (25) - this is exactly true. EWhen people call me, I tell them what it is. I am not lying, and if they are OK to do it after we close, then ... let them wait and pay more.

May 01, 2012 03:23 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Christine - I guess they have worked this system out. they have been doing it for a while, so I assume they have the way to do it. I simply do not know enough to render the opinion

May 01, 2012 03:24 PM
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

Jon, I admire your investor for having the guts to risk so much on this venture, of course it may not be that risky, even if the first tv auction buyers fall through she can still do it over and find more buyers.  I hope it all works out for you, the investor and the eventual buyers.

May 01, 2012 03:59 PM
1~Judi Barrett
Integrity Real Estate Services 116 SE AVE N, Idabel, OK 74745 - Idabel, OK
BS Ed, Integrity Real Estate Services -IDABEL OK

Jon, I would not have understood had the buyer called me the way they did you.  We have not had anyone do this and we do not have condos... If I moved to Florida, I'd have to learn some different things. 

May 02, 2012 12:03 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Biob - we will have to wait and see. We have seen aggressive investors before who knew how to sell then nobody could, and it idid not go very smooth

May 02, 2012 12:13 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Erica - it is never easy, but I must admit that life is a matter of adjustment to increasing pressure

May 02, 2012 12:15 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Judi - yep, but hey, if I decide to move to a farm, I will be eaten by cattle before I learn to deal with it  :)

May 02, 2012 12:16 PM