Public auctions of housing usually bank foreclosures - have injected some pizazz in an otherwise desultory Utah real estate market over the past two or three years, but when 20 ultra-luxury condominiums go on the block at Deer Valley next month, things should really get interesting.
The 20 units up for grabs Nov. 6 are the last remaining of the 86-unit, 6-year-old Pinnacle development - five-story, 3,600-square-foot town homes that originally sold for up to $600,000 when Park City/Deer Valley was enjoying boom times.We're not talking distressed housing here folks. Each Pinnacle unit has three bedrooms, all with private baths, plus a den, providing sleeping accommodations for 11.
Each also has an outdoor hot tub and spa deck, vaulted ceilings, three-story living room windows with views of Bald Eagle Mountain, security and fire system with "freeze alert," copper and marble fireplace, master bath whirlpool, private attached garage, redwood decks and stone patio.
Phew! Now that we have their credentials out of the way the obvious question is this: if these Pinnacle condos are so great, how come they have to be auctioned off?
It's like this, explains Steven L. Good, whose Good & Company, Chicago, has been selected by Pinnacle developers The Jorman Group, also of Chicago, to conduct the auction:
"The Deer Valley area, as other resort areas, has been experiencing the effects of the Tax Reform Act of 1986 which reduced real estate investment incentives. Additionally, sales have slowed in the area because of overbuilding.
"Taking these factors into account, The Jorman Group recognized that selling the remaining Pinnacle units at auction would reduce its marketing time to 60 days and thereby reduce the carrying costs . . . "
Sounds reasonable, but will there be any bargains? It's possible that someone could steal one of the lavish digs, particularly one of the five units that will be sold "absolute without reserve" meaning high bid takes it even if the owners think they're being ripped off.
The other 15, presumably more desirable for one reason or another, will be sold with reserve, meaning The Jorman Group has 48 hours to accept the bid if they like it and reject it if they don't. The "suggested opening bid" of all units is $100,000. Bidders must show up with a $15,000 cashier's or certified check to prove that they are serious people.
But hold on. This isn't going to be just any old auction, where bidders cram into a barn with a sawdust floor and bid too much for an antique rocker they don't need. This will be a very high-tech affair.
The Pinnacle auction will be televised via satellite from Park City's Yarrow Hotel to locations in Chicago and Los Angeles where bidders in those cities will compete with locals - a first for real estate auctions, according to Good. The auction is slated to begin at 1 p.m.
On-site inspections are scheduled for 11 a.m.-5 p.m. weekends beginning Oct. 15 and ending on auction day. The Pinnacle sales office is also open daily 11 a.m.-5 p.m.
Prospective bidders in Utah can receive a complimentary brochure on the Pinnacle development by calling 649-3013.