In an article in this week’s Stranger blog, blogger Dominic Holden reported on a recent auction of new condominium units in downtown Seattle:
This is the new normal,” says Rhett Winchell, president of Beverly Hills-based Kennedy Wilson Auction Group, which was auctioning 15 units of the Capitol Hill Press Condos today. The company held 30 auctions nationwide this year and Winchell expects more in Seattle next year. “Auctions obviously do grow in popularity when the economy slows because builders need a way to sell property quickly,” says the pinstripe-suited Winchell.
Holden reported that another condo auction last month suggests this may be a trend in the Seattle condo market.
For anyone who is considering purchasing a condominium at an auction, I highly recommend that they obtain and thoroughly review a Public Offering Statement (in Washington) or a Condominium Disclosure Statement (in Oregon) ahead of time. Further due diligence would include review of the entire CC&Rs and detailed scrutiny of the Association’s finances. Inquiry with the management company and even speaking with a board member or homeowner would also go a long way in ferreting out potential problems. Red flags and the hair on the back of the neck of any potential buyer should arise when contemplating purchasing a condominium unit at auction.
If you have purchased, or are thinking of purchasing, a condominium unit in Oregon or Washington and would like further information on required disclosures from the Declarant, feel free to contact Barker Martin, P.S. by selecting the “Contact” tab at the top of this blog page.
