November 12, 2009
The Wrenn Report: The Saffron condos auction results, Jersey City
The Saffron Condos, a downtown Jersey City condo community had it’s final preview this past Sat before it’s big pre – sale auction. These pre – sale auctions are becoming more and more popular with developers as the challenges of the real estate market build and the developers pockets shrink.
I attended the last Saffron “preview” date this past Saturday before the condo auction. The venue was bustling the entire time I was there. The people attending were focused and dare I say very excited about the prospect of stealing a shiny brand new condo at below market value.
The auction commenced the following Sunday the 8th and was very successful. There were a total of 9 out of the Saffron’s 76 homes put up on the auction block. Of the 9 condos, there were 4 one bedroom homes and 5 two bedrooms homes. James Caulfield a partner with Fields development said these 9 homes sold out swiftly, in fact they were sold so successfully that another 6 homes were released for sale.
The highest bid on the Saffron’s one bedroom condos was $322,000 which is close to a $25,000 savings. The highest bid for the two bedroom condos was $440,000 which is close to $59,000 in savings. The savings are estimates based on where the comparable pricing of the homes will be released next month. The last 6 homes that were released were made available to so called “step-up” buyers which means they were willing to pay the maximum bid that previously won a home style.
This was a very successful business model that will continue to be replicated and expanded upon in my opinion. The old way of selling pre – construction homes is changing and the most successful developer will be the one that changes with them. The money lost from selling homes at below market value is far out weighed when taking in to consideration the long term financial implications of no sales or poor sales.
There will be more to follow with pictures from my latest visit of some of the Saffron condos models interiors and common spaces.
Stay tuned for more on the Saffron condos…..
Written by
David Wrenn
Halliburton Homes
t. 201.420.7766
e. dwrenn@halliburtonhomes.com
