Stinson Seafood property to be auctioned June 24
May 16th, 2008 . by mcareyBELFAST (May 15): The owners of the Stinson Seafood property on the Belfast waterfront have announced a June 24 auction of the entire parcel.
The sale will be handled by Tranzon, the international auctioneers with an office in Portland. Spokesman Mike Carey said Thursday, May 15 that the sale will be subject to owner confirmation and is not a foreclosure or bankruptcy procedure.
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| The shiny new Footbridge stands in sharp contrast to the skeletal Wakeag Landing project to its south. (File Photo) |
The firm plans to advertise regionally and nationally in both print and Internet outlets, he said.
Carey said Belfast Bridge LLC, the owners who planned to turn the former sardine plant into a multi-use complex called Wakeag Landing, have considered an auction of the property throughout the marketing campaign. “They feel they have taken the project as far as they can” Carey said, “and they want to pass it on to someone who will take it into the end zone.”
Though the real estate market is depressed nationally, “There’s a lot of excitement about Belfast,” Carey said. “You’re a small, quirky, funky town and you’re now reinventing yourself again. Now is the time to sell because now is the time to buy.”
The property was listed for $1.5 million before it was purchased by developer Tom Roberts and partners in 2004 and was last listed by a real estate agency for $3.1 million, Carey said.
The owners have not established a minimum price for the auction, he said.
The City Council last month extended the contract rezoning agreement that Roberts reached with the city in 2006 so it would be available to new owners. The agreement calls for construction of condominiums, retail spaces, a marina and boat-repair facility and a dock for local commercial fishermen.
City officials have reported continuing interest in the property by buyers.
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Sphere: Related ContentPortland Press Herald Article
May 7th, 2008 . by mcareyNice piece in the Press Herald yesterday on Tranzon and Real Estate Auctions in general. We are busy right now - had two great sales today in Cushing and Belfast, have a bunch of sales coming up in the next 30 days - from our perspective the market is still open for business and yes there are deals to be had, but some buyers are fairly bullish and from my perspective - rightly so. Financing is available for people who maintained their credit ratings over the last 12 months and property values are falling - can they fall farther - maybe, but I doubt much more.
Portland Press Herald: Going Once, Twice, Sold - But is it a Bargain?
The three-bedroom, two-bath home in a new subdivision off Grammar Road in Sanford was assessed at almost $270,000, and three years ago it might have sold for even more.
But in today’s beaten-down real estate market, the house went into foreclosure before the developer finished construction or even installed a septic system. The mortgage holder, Bangor Savings Bank, held an auction, and in a scene that has been repeated hundreds of times this year in Maine, a small group of investors and would-be homeowners gathered in the rain outside the house last week to bid on the property.
Minutes after Tom Saturley of Tranzon Auction Properties in Portland opened the bidding at $50,000, the house was sold to an investor for $143,500.
These are busy times for those in the real estate auction industry, a business that can be seen as a reverse barometer of the real estate market, with activity rising when the market falls. A wave of foreclosures that has yet to peak is driving an increase in real estate auctions around the state. Several people in the industry say their business is up 20 percent to 30 percent from last year.
For those who are willing to venture into a buying process that requires some research, risk and persistence on the part of the purchaser, auctioneers say these sales can offer attractive opportunities for home buyers. However, some real estate agents caution that the competitive bidding that takes place at auction can also result in buyers getting caught up in the event and overpaying.
In any case, several Maine auctioneers said most of the people buying at auction these days are investors seeking to fix up bargain properties and resell them for profit.
“I’m seeing lots of investors I haven’t seen for two or three years,” said Stefan Keenan, of Keenan Auction Co. in South Portland. “They’re coming out because stuff is on sale, so to speak.”
AUCTIONS OFTEN JUST A FORMALITY
One thing a potential home buyer needs to know when looking at the long listings of auctions in almost any local newspaper these days is that most auctions are little more than legal formalities. They often take place in corporate boardrooms and are attended only by bankers and lawyers, although they are open to the public.
If the bank holding an overdue mortgage is a large, out-of-state corporation, the bank’s usual practice is to bid what it is owed and take possession of the property, according to Keenan. Though anyone could legally bid against the bank, the owners of most homes in the foreclosure process have little equity, so a buyer is unlikely to acquire a home at a bargain price this way.
Although most banks are not interested in being property owners, the larger institutions have what’s known as REO, or real estate owned, divisions that handle the sale of properties acquired through foreclosure. In most cases, the banks commission a real estate agent to market the properties, and they are listed for sale on the Multiple Listing Service.
It is the smaller, Maine-based banks that are more likely to try to speed up this process by holding an auction with the intention of selling the property. These banks may be more familiar with local markets and more flexible in their decisions about how to dispose of properties, Keenan said.
Buyers can tell the difference between an auction intended to sell a property and one that is only likely to result in the bank taking ownership by looking at the marketing effort behind an auction, said Mike Carey, with Tranzon. When banks want to make a sale, they will do more than take out a black-and-white listing in the classifieds. Typically, they hire an auction company to advertise and create informational brochures on the property.
Tranzon, which has 22 offices around the country, typically does about 100 auctions a year in Maine, Carey said. This year, the company has already completed 50.
Sphere: Related ContentA regular CoStar Contributor
February 28th, 2008 . by mcareyNext I’m waiting for a call from the WSJ:
Instead, the major stumbling blocks to deal flow, our survey participants told us, was that the good old days of the past five years are still too fresh in sellers’ minds, while a new found conservatism has crept into the buyers’ minds.
“Twenty-four months ago, there were a lot of real estate investors who were very happy with the purchases they made 30 months ago - now there are a lot of real estate investors who are very unhappy with the purchases they made six months ago. That said, we are seeing a return to sanity and historical norms,” said Mike Carey, national account coordinator for Tranzon Auction Properties in Portland, ME.
Current Market Conditions Don’t Seem To Have Caught Up with Sellers, While Buyers Think Everything Should Be Deeply Discounted
Much has been made of the impact of the credit crunch on the slowdown of commercial real estate investments. But just as impactful as the lack of available credit right now, is that buyers and sellers have not yet come to terms with the the ‘new reality’ and remain at opposite extremes in terms of pricing, which further exacerbates the current deal paralysis gripping the market.
There is almost no investment real estate market at this time, say industry executives and brokers we surveyed for this story. Some 1031 exchanges are getting done out of necessity to meet tax obligations and some institutional properties are trading due to the flow of foreign capital taking advantage of the depressed dollar but the spread between buyer and seller is far too dramatic for “bread and butter” deals to get done.
If you would like to read the full story, please go to:http://www.costar.com/News/Article.aspx?id=13DEAE780258528E13339CE2D3598402
Sphere: Related ContentReal Estate Auctions Grow
February 25th, 2008 . by mcarey2007 NAA/Morpace Industry Overview Brochure
Available to Download
The NAA 2007 end-of-year industry overview brochure is now available for members to download. Click here to view.
Primary Residence - Shelter or Investment?
February 13th, 2008 . by mcareyThe Real Estate Journal published an article yesterday morning that is interesting from several perspectives. Their articles lean toward simplicity out of, what I believe is, the K.I.S.S. mentality of writing for the masses. Nevertheless, this article highlights a multitude of topics that could be expanded upon, but I’m going to hook items 1 and 2 as they relate to this blog content.
1. “You don’t know what’s worth until you sell it” - I should print this on my business cards. The power of perception is a wonderful thing - it allows us to dream and leads to research and innovation - unfortunately, if unchecked, it sometimes also leads to delusions of grandeur - when it comes to the real estate this next statement is a natural tendency - [dreaming] “leaves ample room for mental mischief. You can happily imagine that your house is a wonderfully stable investment, because — unlike your stocks — you aren’t receiving continuous price updates. You can also happily imagine that your home sports some grand valuation.”
which leads us to item 2: “The expense ratio is HUGE” - That mortgage payment and utility bill doesn’t seem as overwhelming when we are seeing the direct benefit of writing that check every month - BUT, when that house is empty and you’re still writing the check, numbers like this are significant “Each year, between maintenance costs, property taxes and homeowners insurance, you might be paying a sum equal to 3% or 3.5% of your home’s value.” To put this in concrete terms - you’re $400K house costs you between $12K and 14K a year - minimum! That doesn’t include your debt service folks.
So you ask, what’s my point? Well, first let’s start with my point isn’t that everyone should be selling at auction. There are times and places where auctions are the most effective and impactful means of resolving a real estate situation, but auction are not appropriate for all real estate transactions. My point is mostly - don’t quibble over a couple of thousand bucks here or there on the sale of your house - in the end it really won’t matter and usually your money today is worth more than your money tomorrow.
Sphere: Related ContentNPR - Tell Me More - Auctioneer Gives Crash Course in Fast-Talkin’ Style
January 4th, 2008 . by mcareyI tend to write more on real estate and finance and less on Auctions, so here’s a bit of fun auction news! Denise is in my CAI Class and along with being a fantastic auctioneer is very thoughtful and entrepreneurial person.
Auctioneer Gives Crash Course on Fast-Talking Style
Tell Me More, January 3, 2008 · It’s the familiar, but sometimes unintelligible voice standing out among all the rest: that fast-talking, number-crunching auctioneer. Denise Shearin shares tips and divulges insider info on the world of auction blocks. Shearin was recently named the International Auction Champion.
Sphere: Related ContentNational Auctioneers Association Launches Real Estate Auction MLS
December 21st, 2007 . by mcareyThis is a long time coming for our industry and i’m very excited about it. A quick editorial comment though…as with all things technological the system has a couple of bugs that are being worked through.
Press Release Source: National Auctioneers Association
National Auctioneers Association Launches Real Estate Auction MLS.
Thursday December 13, 8:00 am ET
OVERLAND PARK, Kan.–(BUSINESS WIRE)–The National Auctioneers Association, the world’s largest professional association representing the interests of Auctioneers, recently launched a multiple listing service (MLS) designed specifically for real estate auctions. As consumer interest in auctions grows, consumers are turning to auctions to buy and sell real estate. The newly launched website, www.NAARealEstateAuctions.com., provides consumers with up-to-date information on real estate auctions taking place in their area. Consumers can utilize the website to view residential, commercial, agricultural, and time share real estate scheduled to be sold at auction.
“The creation of the NAA Real Estate Auction MLS provides consumers with a convenient approach to researching upcoming auctions,” said NAA president Tommy Williams. “In addition to traditional marketing campaigns promoting upcoming auctions, auctioneers and their clients now have the ability to market their sale to a larger audience of prospective bidders.”
Residential real estate auction is the fastest growing segment of the auction industry. Between 2003 and 2006, gross revenue of residential real estate sold at auction has increased 39%. In 2006, over $16 billion was sold in residential real estate. In addition to residential real estate auctions, over $25 billion was sold in land/agricultural real estate and $15 billion in commercial/industrial real estate in 2006.
About the NAA: Headquartered in Overland Park, Kansas, the National Auctioneers Association (NAA) represents the interests of approximately 6,000 auctioneers in the United States, Canada and across the world. Founded in 1949, the mission of the NAA is to promote the auction method of marketing and enhancing the professionalism of its members through education and technology. In 2006, the auction industry grew by 7.1% with over $257 billion in goods and services sold. To learn more about Auctioneers, auctions and the NAA visit: www.auctioneers.org.
Contact:
National Auctioneers Association
Chris Longly, 913-541-8084 ext. 31
The Tranzon Auction Leader - Part 2
November 27th, 2007 . by mcareyCommercial Stays Strong
Quarterly Newsletter - Fall 2007
The Tranzon Auction Leader is published quarterly by Tranzon LLC, national experts in accelerated marketing and auction sales. This E-newsletter focuses on trends, auction highlights, and expert analyses on how a professionally marketed auction may maximize an asset’s value. Email Mike Carey with “subscribe” in the subject line and I will add you to our mailing list.
Commercial property markets remain quite solid. We are seeing good success in our auctions of commercial properties. We have noted that pricing has leveled off, but it has done so at strong levels. The underlying fundamentals appear to remain favorable.
Important to auction sellers, these strong markets have kept appetites strong for properties that have a “story” as many auction properties do. Buyers are willing to purchase properties with issues or requiring some effort to stabilize.
On the financing side, we are seeing lender tightening in this market also for the smaller, less financially strong investor-buyer. This has been going on for most of 2007 and does not appear to have gotten materially more difficult.
In recent months we have had successful sales of assisted living facilities (both operating and closed), convenience stores/service stations, retail, small office, apartments and industrial property. Commercial property is moving at auction pretty much across the board.
Properties generating cash flows are still in high demand and, as noted, there is still an appetite for turnaround situations. If there is a weakness we have detected, it is in land sales, where some of the speculative bloom has come off the rose.
Our observation of rosy conditions in the commercial area is not without some concern. We note, as do others, the relaxed underwriting of loans in recent years and the over-leveraging that appears to have been permitted in some situations. We do expect a moderate worsening in the performance of commercial loan portfolios, but we are not looking for anything resembling what we have seen in the residential market.
Sphere: Related ContentThe Tranzon Auction Leader
November 26th, 2007 . by mcareyQuarterly Newsletter - Fall 2007
The Tranzon Auction Leader is published quarterly by Tranzon LLC, national experts in accelerated marketing and auction sales. This E-newsletter focuses on trends, auction highlights, and expert analyses on how a professionally marketed auction may maximize an asset’s value. Email Mike Carey with “subscribe” in the subject line and I will add you to our mailing list.
It’s Been a Long Hot Summer
The title of our opening article in the Spring 2007 newsletter read “The Big News in the Residential Market - Lenders Tighten Their Belts”.
This past August, everyone’s belts tightened so much that the markets could not breathe. We will not repeat the widely reported seizing in the debt markets on Wall Street. We will focus on what we are seeing on Main Street.
In the Spring Newsletter we noted that if liquidity continues to retract, Real Estate problems would start surfacing in certain markets that heretofore have been pretty healthy. We have seen that play out. Residential markets that were strong throughout the adjustment up through this summer seem to have slowed measurably. The residential slowdown appears pretty widespread.
We have just started seeing a return to some semblance of normalcy in many markets. The “headline shock” of the July and August credit market problems is appearing to wear off. Buyers and sellers are slowly coming back into the market. Attendance at Tranzon residential auctions across the country has been steadily on the rise giving credence to marketing that stands out.
There seems to be ample liquidity to fund new home purchases and sound investment property. Anecdotally, we have seen the “informal” sub-prime market come to life in the past month after lying dormant for years. Entrepreneurs, who prior to recent years provided much of the capital to “less-than-prime” borrowers, are back in business. And they have money to lend.
So we are not seeing conditions commensurate with a real estate debacle. Liquidity exists. And buyers have the interest in buying property, the need to buy property, and the money with which to buy property. What they do not have is confidence, which will take awhile.
All of which makes for a challenging market for residential real estate. At the same time that we have a huge pool of property for sale, we have a diminished pool of buyers. Today’s challenge in brokerage marketing is how to make a property stand out from the sea of opportunities. Effective auction marketing has been accomplishing this by communicating a sense of urgency and opportunity to the market, much more so than at any time in recent years. Tranzon’s success rates (percentage sold to percentage deeds offered) have increased sharply over the last three months.
Another challenge is dealing with an environment of falling values. We say “values” rather than “pricing” on purpose. It appears that in most of our markets, prices are not coming down to a level to accurately reflect current “values”. One reason we believe sales have slowed so much is that sellers have not, or cannot, adjust their expectations to today’s environment. This is a market that relates well to auctions, where the auction market sets the pricing, thus the value, for the sellers to approve, or reject.
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