Unlike most distressed, short sale or foreclosure auctions, this one will feature more typical local residential real estate ranging from a $124,000 Fountain Villa townhome to a $1.2 million single-family home in the Tri-Lakes area.
The sale was organized after Pinnacle Auction Group President Rick Rolph of Castle Rock met with Colorado Springs’ ReMax Properties’ owner Joe Clement earlier this year. Initially, he pitched the concept specifically for Colorado Springs.
“(But) we didn’t think at that time that we had critical mass, enough sellers who would participate,” Clement said.
An auction covering a broader territory with a bigger advertising budget made more sense to him.
So Rolph, who already had three Denver area ReMax offices on board, pooled all of the properties into a single sale. A nominating committee consisting of realtors from the four participating brokerages met last month to select final auction candidates.
“If they weren’t ready to price their homes to sell, we didn’t include them,” Clement said, adding that the final list included more than 170 homes.
Each featured property’s realtor hosted at least two open houses in advance of the auction. And homes had to be priced “very attractively,” Clement said, adding that all sellers have agreed to a “realistic” minimum reserve price.
Sellers also paid $495 to have their property included, a fraction of the cost auction companies typically charge for a single home.
Rolph said the auction concept, popular throughout the South, the Midwest and along the East Coast, is still fairly new to Coloradans. At the same time, he believes auctions are an important marketing tool that brings buyers and sellers together.
“Anyone who bids will know they’re getting a price below the list price — maybe more than 10 percent in some cases,” he said.
“We’ll take every bid, even if it does not meet the reserve price. And we will give sellers the opportunity right there to review the highest bid and negotiate.”
A title company and mortgage lenders including Wells Fargo will be available at the auction. In addition, sellers are supplying signed contracts, with all blanks but the price and closing date filled in so deals may be struck on the spot.
Clement expects some success but is not sure how many homes will actually sell.
The auction’s “buzz” has already bolstered showings, and one of his company’s listings went under contract prior to the auction.
“I don’t know what the response will be — whether it’s 20 percent or 80 percent, but we are creating activity that these 33 homes didn’t have,” he said.
“And who knows? Depending on the results of the first one, we might do two or three a year.”
Registration opens at 7:30 a.m. on the date of the auction. Online registration is also available at http://www.pinnaclehomeauctions.com/Registration_Documents.php. For more information visit http://pinnaclehomeauctions.com/.
Iron Horse Pediatrics has purchased a 3,070-square-foot office condominium at 8580 Scarborough Drive for $663,000 or $216 per square foot.
The two-building campus was developed by Research Two, LLC partners Joe Niebur of Niebur Golf and Ray Thomas of Thomas Construction Co. Ted Link of Cascade Commercial Group represented both the buyer and the seller.
In related news, Rockrimmon Vision leased 4,362 square feet in the Atrium Building at 6005 Delmonico Drive. Dr. Jerry Hendricks, Dr. Keely Knoche and Brenda Begin will move into the new location later this year.
One key selling point for the tenant, according to tenant broker Ted Link, was the new office’s upscale interior finishes. The doctors will also double the size of their current operation. Peter Scoville of Palmer McAllister, Cushman &Wakefield represented the landlord, DMI No.3 LLC
Becky Hurley can be reached at email@example.com or 719-329-5235.