Lukasz thanks a lot for all your feedback.

Well like I said. The condos as nice as they are, were priced entirely too high for the market that we're in. They sold right around where the comps put them, maybe slightly less. The builder did that most likely because he'd rather auction them off than reduce them to these prices and have people offer even less money.

As to my clients, no they definitely will not go down that much. It's not a short sale and they're not in trouble. They want to move but they don't necessarily have to right now. The price has a little flexibility but not that much.

Lucasz I was there as well. The first bid was 350K, which I thought was really high! The other around 325K I thought it was good and market price especially for the H and E units. The remaining of 2beds were 280-285 for the A, B, C & D models but just 1 parking space. If you think about it that was 150K - 175K below asking price or 30% lower. Honestly, how much do you think the sellers of the townhouse in Fairview you've listed would go for? 30% below the 415K asking price? Thanks for your responses.

Lu,

So did you go to the auction? I thought I wouldn't make it because there was an accident on Rt 3 and they closed the highway so there was a crazy traffic jam. In case you didn't make it I can tell you that I was a little off in guessing the price, but not by much. The highest price paid was $350K for a 2 bedroom and the lowest was $280K. The one bedrooms sold ranging from $225K lowest-$250K highest. All in all the builder made out well and the people that bought, at least in my opinion, got a great deal simply because it's brand new and the materials used were of pretty high quality. I suspect that even though they said that only the first 7 units were guaranteed to sell, he'll still let the rest of them go for the prices that were offered simply to get rid of the headache of trying to keep selling. It wouldn't make sense for him to keep them.

Localboy, why should I be concern with the sprinkler system? Why are you saying it is leaking? Did you see anything bad there? Please explain more about the fire and building code that will not approve the black top parking area? Tks a lot.

Be concerned about the leaky sprinkler system and the black top parking area which will have to be replaced with concrete to meet fire and building code...

Oops. You are correct, I mis-read the flyer and there are in fact only 4 one bedrooms available so that wouldn't make sense. I went over the flyer with the broker who's hosting the auction and I misunderstood what he said when we talked about it. My appologies :)

Lukasz I did not see the information on the 2 bedroom will be sold at sellers discretion. I went to the informaiton session on the last preview and this auciton is a bidder's choice. And the first 7 units is guaranteed to be sold if it reaches the minium bid ($95K for 1 bed and $125K for 2 beds). After the 7th round, then the seller will be able to decide if he accepts the 8th bid or not. Which paper is that, that says the seller will decide if he will sell the 2 beds. That is not guarantee? Please send it to me the exact sayings. Thank you so much.

I agree with you that they were overpriced and I agree with you that you can get more for your money in other places. I am in fact selling one of those duplexes (2900 sqft.) for $415K in Fairview. But auctions can be magical things. People get so worked up in bidding that they may end up spending more than they wanted. They advertised this auction very aggressively locally and in NYC and they are allowing people to bid online. I expect a big turn-out. Also, I don't know if you have one of the brochures that they were giving out, but in it is states that the one bedrooms will be sold for at least the minimum bid guaranteed, however the 2 bedrooms are at the builder's discretion. If he doesn't like the bids that he's getting, he can very well stop the auction. I'm going there for educational purposes only, to inform a few of my builder's of what went on and what things sold for.

Hi Lukasz thank you so much for your answer. I think we will have to wait until sunday and see the results! As you know the building does not have amenities, just the parking space which is really great to have in that area. But at the same time, you can get half duplex with 3 bed 2 1/2 bath of 2,050 sqft for $399K in North Bergen, $195 per sqft. Or a whole duplex in Cliffside Park for $415K. And that is the asking price! We have to remember that these condos are not getting sold fast. So I dont think people are willing to spend 350K-400K for a 2bed/2bath or 250K-300K for a 1 bed/1bath. You can even buy a 2bed/2bath w 2 parking spaces in the condominium on Bergenwood Ave. for $280K. The unemployment rate climbing every month, the difficulty to get credit and approved mortgages, and the low cash flow of most of households is making those condos sit on the market for a long time before it gets sold. I think he is auctioning the units because it is not priced right. But lets see the results. I will also be at the auction.

Hi Lu, it depends on the amenities of the building itself but you can expect to pay between $250K-$350K. This building is beutiful inside and the builder really spared no expense. As to your concerns... I don't think there will be major issues with the property. Your concern should be as with buying any property, can you afford it and the monthly expenses associated with the purchase of a new home.

The auction is this Sunday (Aug 9th) and the units were advertised all over the place so don't expect to runaway with a steal and paying only the starting bid ($95,000 for a 1 bedroom, $125,000 for 2). I expect that they will sell right around market value if not a bit higher. If I was to make a guess the 1 bedrooms will sell between $250,000 and $300,000 and the 2 bedrooms between $300,000 and $400,000.

I'll be at the auction as a spectator and I wish you luck if you're bidding.