Condominium auction insight

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Hello,

I live in the Boston area and been looking at condos for a primary residence. Recently a new complex of condos has been listed that the condos will be auctioned off. 25 of 31 condos will be auctioned off, the other 6 have already sold. The complex has been completed for about 1.5 years and the condo market in Boston has been pretty bad since mid 2008.

I haven't purchased RE through an auction before, so I was looking for some insight if anyone has any experience with them. The developer has listed the "minimum starting price" for each unit and has quoted them to be >50% off the "last asking price". Most of the last asking prices are ridiculous, close to 30% more than anything would even sell, they are just trying to market it as good deal.

My main question is what can I expect units to be sold for compared to the starting bids? Will they get bid up to 80-90% of their accessed values thus not making these deals?

Thanks.

Here is the marketing fluff:

[Mary R.]

Originally posted by R Dhupar:

...looking at condos for a primary residence. Recently a new complex of condos has been listed that the condos will be auctioned off. 25 of 31 condos will be auctioned off, the other 6 have already sold. The complex has been completed for about 1.5 years ...

If they were completed 1.5 years ago, they are not really "new." They have been finished and vacant for that long. There's reasons for that, the "bad condo market" is only one. WHY is the condo market bad? One reason is that the expense of condos starts AFTER the papers are signed. The purchase cost is the first. Have you considered--do you KNOW what the monthly condo fee will be? Not saying it's so here, but many condo units are priced kind of low to get people in, and they often have the monthly fees listed at somewhat reasonable prices. Then a few months, possibly even twelve, the fees are raised way high because so many people who buy condos don't expect to die in them, so they don't pau their dues so standard maintenance can be done.

Originally posted by R Dhupar:

and the condo market in Boston has been pretty bad since mid 2008.

When is that going to change, WHO is your source of info on that, and why do you want to buy into a place the owners haven't been able to sell for over 18 months with all their marketing and expertise? I would bet those 1/2 off prices are still high all things considered. Those all things are not limited to insurances, ccrs (covenants, codes, restrictions) monthly dues and annual and special additional raises and assessments, what happens if only 7 lots are sold by the end of the auction? How are you and the other 6 owners going to keep the place up? Yoou KNOW the developer will have a way out. That MAY mean selling in 6 months for WAY less than YOU buy it for now. How are your neighbors going to feel about you buying for less than half of what they paid? How are you all going to feel about the new dudes when they buy for way less than you did?

Originally posted by R Dhupar:

The developer has listed the "minimum starting price" for each unit and has quoted them to be >50% off the "last asking price". Most of the last asking prices are ridiculous, close to 30% more than anything would even sell, they are just trying to market it as good deal.

Of course they're trying to market it as a good deal. I do not think it is. I woulnd never buy a condo. Too many problems eith them. Have you read the ccrs yet? Have you talked to any of the residents? What is the reputation of the builder?
You do know the boards are not interested in YOUR problems as an "owner" don't you? And if there is any kind of problem, they will do everything they can to make it yours, not theirs, and will go round'about to to that. Because that's what they do.

Originally posted by R Dhupar:

My main question is what can I expect units to be sold for compared to the starting bids? Will they get bid up to 80-90% of their accessed values thus not making these deals?

Who's doing the assessing here? Is that a city/county assessed amount, or is it the hoped for sale price, put on by the developer/marketer? I would be surprised if there were any bidders, at those prices, based on the facts that "its a bad condo market", 25 of 31 condos will be auctioned off, the other 6 have already sold. (That "already" should read "finally" ) and The complex has been completed for about 1.5 years, and the fees, the fees, the fees...

I am not a real estate professional, this is not a professional opinion, I am not from Boston, Mass, or even the northeast. I absolutely do not know what I'm talking about. Do your due diligence, then go back and check it twice, than ask here again...
Personally, I'd stay away from it.