DIGS is the premiere luxury real estate lifestyle magazine serving the most affluent neighborhoods in the South Bay and Westside of Los Angeles, California.
Issue link: https://www.southbaydiggs.com/i/1481063
Auction, Manhattan Beach and house are 3 words rarely found in the same sentence. However, the luxury home located at 1400 19th Street in Manhattan Beach will, in fact, be auc- tioned off this October. Originally listed at $4M, the true value of 4,301 SF home on a 6,942 SF corner lot will be decided by its bidders. Has the real estate market changed course so quickly that homes now need to be auctioned in order to sell? Well… not neces- sarily. But in this particular case, opportunity is definitely knocking for one lucky buyer. But why would a seller have to auction a home to get it sold? It's often assumed that there's significant distress, a bank foreclosure or (god forbid) some other fishy reason that drives the decision to auction a home…. but in this case, the seller simply decided to choose the auction process to find a buyer and create finality. 1400 19th Street's seller wasn't forced into an auction in any way. The home was ac- quired through the death of the owner, and the Trustee (who has a fiduciary responsibility to sell the home at market value) decided to use the auction process to complete the sale. This method provides the seller with a fixed timeline and a guarantee of market value. A no-reserve auction is the best-case scenario for buyers, since the seller is legally required to sell once the auction process begins. If the bids are low, the seller still must sell… and the buyer scores an incredible value. It's also the best-case scenario for the Trustee, who ensures market value (i.e. their fiduciary responsibility) by making the property publicly available via the auction process. As with most auctions, a buyer's pre- mium is added to the final bid price. This is essentially an auction fee that is paid by the winning buyer. Buyers don't typically pay fees in a traditional real estate sale, but in most auctions fees are added to bid prices to determine the total purchase price. 1400 19th Street will have a 12% buyer's premium add- ed to the final bid price… however, savvy buy- ers have the opportunity to take advantage of what is called the Starting Incentive Bid. If you're the highest bidder, Sotheby's Concierge Auctions offers a credit (the Starting Incentive Bid) to reduce the buyer's premium by 50% related to the starting bid amount; this encourages buyers to submit a starting bid before the start of the auction. All starting bids are binding and must be received by the deadline (October 19th). A pro tip: the higher your starting bid: the more you'll save on the final purchase price. The actual auction will take place from October 20th through the 25th. You need to be registered to participate in the action; you can register online, at the property or by sim- ply contacting Ed Kaminsky (the listing agent) of Kaminsky Real Estate Group at eXp Realty, who is working alongside Sotheby's Concierge Auctions to market and sell the property. There is a fully-refundable registration de- posit of $100,0000 if your bid doesn't win. The winning bidder must deposit 12% of the total purchase price at the conclusion of the auction. The buyer then has roughly 3 weeks to close escrow; note that there are no contingencies of any kind when purchasing at auction. The buy- er may elect to finance the purchase, however there can be no contingencies for obtaining that financing. The buyer also must perform all due diligence before the auction to satisfy them- selves at their sole desertion. See Bidder Terms & Conditions for all details online or on-site. For more information about the auction process, the home itself or general real estate questions, contact Ed Kaminsky of eXp Realty (DRE #00958114) at 310.427.2414 or via email at ek@itzsold.com. An Auction in Manhattan Beach: Has It Come to This? Has the market changed so drastically that homes need to be auctioned in order to sell? by Ed Kaminsky S P E C I A L A DV E RT I S I N G S E C T I O N Ed Kaminsky 310.427.2414 • ek@itzsold.com • itzsold.com Whoa... your home's value just changed again. Do you have 7 seconds? Scan for an instant valuation. ED KAMINSKY DRE #00958114 | EXP REALTY OF CALIFORNIA, INC. DRE #01878277. THE INFORMATION CONTAINED IN THIS DOCUMENT, INCLUDING, BUT NOT LIMITED TO, SQUARE FOOTAGE AND/OR ACREAGE, HAS BEEN PROVIDED BY VARIOUS SOURCES WHICH MAY INCLUDE THE SELLER, PUBLIC RECORDS, THE MULTIPLE LISTING SERVICE OR OTHER SOURCES. BROKER HAS NOT AND WILL NOT INVESTIGATE OR VERIFY THE ACCURACY OF THIS INFORMATION. R E L O C A T I O N SPORTSTAR