Buyers Prepare for 1850 Condo Auction

Just over a year ago, Buyers and Investors had the opportunity to participate in the last downtown Boston condo auction at the Broadluxe (see Broadluxe Condo Auction Results).  On Sunday, June 28th, those interested in purchasing downtown Boston real estate will again have a chance to do so at auction prices when the 1850, a 60-unit loft-style condo development in the South End, goes to auction.

High Level Auction Information

• What: 35 condos at the 1850 Lofts
• Minimum Bids: $175,000 for some units
• Auction Date: Sunday, June 28, 2009 with check in at noon
• Auction Location: Westin Boston Waterfront (map)
• Prerequisites: Auction Registration Form & $5,000 cash equivalent

Registration is required to attend the auction and to become eligible to bid. Interested bidders are encouraged to tour the 1850 prior to the auction (tours are available daily starting at 1pm at 90 Wareham Street in the South End), and during the visit complete and return the Auction Registration Form, which will qualify you to bid.  On auction day, all approved registered bidders must present a separate Cashier’s Check, Traveler’s Check, Certified Check or Money Order (“Cash Equivalent”) in the amount of $5,000 (Cash Equivalents should be made payable to yourself). Each bidder is also required to bring a blank personal check, which will be used to bring your total down payment to 5% of the winning bid price.

The auction has the potential to provide Buyers and Investors with a significant discount on price per square foot and average selling price in the South End.  Over the past 3 and 6 months respectively, the South End has seen modest price improvements across average and median prices, as well as price per square foot at the neighborhood level – see information below.

Last 3 Months – South End
Number of Condos Sold: 158
Average Selling Price: $594,727
Median Selling Price: $513,750
Average Price per Square Foot: $575
Average Days on Market: 94

Last 6 Months – South End
Number of Condos Sold: 225
Average Selling Price: $584,875
Median Selling Price: $510,000
Average Price per Square Foot: $568
Average Days on Market:  100

Bear in mind that the 1850 is located in one of the most southern points in the South End, and therefore, this fact and others may need to be accounted for when trying to draw price comparisons.  Contact your Buyer’s Agent for more information (note that a Buyer’s Agent must be present at the time of registration and first visit to the Auction Information Center in order to work with a Buyer).

Bidders should be warned that a condo auction bypasses many of the contingencies that a Buyer is afforded during a “typical” real estate transaction.  It should be noted that proper due diligence, including inspection of the property as well as other items standard in a transaction (including consultation with a real estate attorney) should still be conducted, however, these items need to be conducted ahead of the auction and by the Bidder.  Bear in mind that a Purchase and Sale Agreement, typically signed after a fair amount of du diligence is done, will be signed on auction day by winning Bidders.