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Will an Absolute Auction Help to Sell new Construction in this market?

Real Estate Sales Representative with Coldwell Banker Residential Brokerage

Will an Absolute Auction Help to Sell New Construction in the Market?

On Saturday, November 28th, The Makai Condominium will offer 15 units for an Absolute Auction. This building, on the bayfront in Ocean City Maryland, is actually a conversion project. Previously a Hampton Inn the building has been completely converted to 80 studio and 2 Bedroom units. The units are totally updated with granite counter tops, ceramic tile and stainless appliances. The studios are small, at 392 sq ft and the 2 bedrooms are 850 to 1120 sq ft. Original pricing was from $199,000 to $450,000. The ammenity package includes an indoor pool and fitness area. Obviously slow sales to date have brought about the auction. I expect to see a large crowd with many potential buyer's waiting to "Steal" a unit. Will this happen? I will not know until Saturday. What I do know is what ever these units sell for will be the new comp in the building and establish the price moving forward. Does this help future sales? Will there be Steals? Will additional units be sold? and will the sales that do  occur actually be a "Steal" or just packaged as such?   How will this auction effect other New Construction Projects like The Meridian and Gateway Grand? I plan to attend and have registered Buyer's so I will let you know on Monday!