Once upon a time property auctions were a rare bird in southern Nevada. Of course, so were foreclosures. So with the real estate market now a buyer’s market, property auctions have gained some popularity among lenders as a way to quickly reduce their inventory. The latest big auction will be for Newport Lofts.
Newport Lofts by Cherry Developments was seized by its lenders and the bank decided to try to sell the units themselves. A few other projects around the valley are doing the same thing, notably Streamline Tower located just a few blocks away in downtown Las Vegas and One Las Vegas located on the south side of Las Vegas Boulevard.
Newport Lofts is located in downtown Las Vegas at 300 Hoover street. There are 20 new lofts that will be auctioned off on August 29th at 3:00 pm. The auction company has taken a step forward and published the reserves for each unit (the least amount they will take to sell it, although the auctioneers stated the sellers have the option of taking a lesser amount). Reserves range from $90,000 for a studio up to $450,000 for a penthouse. Auction financing will be provided with rated for owner occupied units at 5.55% APR and 80% financing for vacation home buyers or investors at 5.693% APR Prime lending. The open house begins on July 31st thru August 28 from four to eight pm on Fridays, noon to four pm on Saturday and Sunday.
Auction Fine Print
You are required to buy a bidder’s packet by mail for $10 or an On-Site Inspections in order to bid on the property. During registration your must also show in your possession a cashier’s check for $7,500 to $15,000 in order to be eligible to bid on a property (amount based on the property you are bidding on). Registration begins at 2 pm the day of the auction. If you buy a unit, you must present the balance of down payment 8% of the total purchase price by cashier’s or certified check by 4 pm 9/4 to Ticor Title.
Auction Vs Foreclosures
Are auctions the great deals that auctioneers would have you believe? That really depends on your bid. Since the reserves are published, buyers have a fighting chance of securing a good deal. However, the winning bid will have a buyer’s premium of 6% of the purchase price tacked on. So if your winning bid is $300,000, that’s an additional $18,000 tacked on top. What about the foreclosure market? As of this writing, there are 31 lofts for sale in Newport Lofts. Of those, 22 are short sales and the rest are regular bank owned foreclosures. What do you think will happen when those 22 foreclosures hit the market? Not to mention the other similar projects nearby. Something to think about before you decide to attend.
If you are thinking about buying a loft or condo in Las Vegas, call us at 702-493-8033 or use our email form below.
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