Business Journal: Developer Auctions Homes
One developer in West Sacramento tries to unload homes in an unusual way. Shana Lynch with the Business Journal has more.
Tuesday, September 4, 2007
In a market where housing sales have plummeted, developer John Leonard is trying a different approach. His homes in West Sacramento will go to the highest bidder. Leonard has hired a public auction company to sell his River’s Side at Washington Square project. The homes, built over the past 30 months, have sat mostly empty. Only three of 22 have sold. Leonard plans an aggressive approach. His required opening bid is 36 percent below the original lowest price. And when the bidding begins, don’t blink. The auction company, Real Estate Disposition, averages 25 homes sold per hour. The auction is set for Sept. 22. It is only one of many housing auctions popping up statewide as the market continues to drag.