Lumen condos going to auction

By on May 28, 2009 in Buying a Home

Thanks to urbnlivn for the heads up on this. It appears that the 20 or so remaining new condos at the Lumen are going to be auctioned off by the developer on July 11, 2009. The building has ~90 residential homes in it, so they are looking for a way to sell their remaining inventory more quickly.

This may be a good opportunity for a deal on a brand-new condo in the South Lake Union/Lower Queen Anne area. However, if you are going to participate in the auction, you need to do your homework on pricing ahead of time and not let yourself get wrapped up in the excitement of the auction.

UPDATE – May 29, 2009: See the auction press release here. Thanks again to urbnlivn.

  • Disappointed

    With its modern fixtures and soaring ceilings, Lumen appears to be a welcome oasis, located steps away from QFC (just below), Seattle Center, Highway 99, and the Bill and Melinda Gates location (currently under construction). The residents are friendly; the amenities are bountiful. And with attractive new auction prices, it seems that the American Dream is once again accessible.
    HOWEVER, in light of the enduring state of our economic landscape, it is truly disappointing to see the property developers, auction house, and lenders continue to perpetuate cloak and dagger tactics – flagrantly ignoring the very causes of our current, dire state. Nothing made this more clear than the "How to Bid at an Auction" seminar held at the Lumen Lounge the evening of 7/1/2009.
    With tougher lending standards, and many employers reducing/stalling headcount to mitigate lingering poor company performance, it is understandable for prospective buyers to express pragmatic concerns: "What happens if approval falls through even after pre-approval?"…."Where does my earnest money or 5% deposit go if I lose my job before closing?"…."What average interest rates is the lender seeing/providing these days?" In this landmark time, the worst case scenario is more and more prevalent, so "what if?" These are reasonable questions, by reasonable people, taking appropriate steps to avoid the mishaps that plagued real estate all-too-recently.
    Every one of these valid questions was danced around and/or flippantly evaded. The most direct answer provided by the auction and lending team was that if a buyer was operating "out of the goodness of their heart" (how that is determined is beyond me, as there is no explicit criteria for this) but are unable to complete the purchase (say, to losing a job – a very real possibility looming over many today), the developer has discussed (strictly in conversation), that the earnest money would be refunded. It should be noted that no documentation supports this statement, thus it is a matter of "word." It should ALSO be noted that the developer, on their "word", stated that no condos would be sold prior to auction; as of 7/1/2009, TWO units have actually been sold outside of the auction.
    So who wins? Buyers, who cannot get straight answers? Current homeowners, eager to see increased occupancy – only to risk new waves of defaults? Or The Triad: developer, auction house, and lender, who tout their commitment to putting clients at ease, yet cannot address genuine client concerns?

  • Disappointed

    With its modern fixtures and soaring ceilings, Lumen appears to be a welcome oasis, located steps away from QFC (just below), Seattle Center, Highway 99, and the Bill and Melinda Gates location (currently under construction). The residents are friendly; the amenities are bountiful. And with attractive new auction prices, it seems that the American Dream is once again accessible.

    HOWEVER, in light of the enduring state of our economic landscape, it is truly disappointing to see the property developers, auction house, and lenders continue to perpetuate cloak and dagger tactics – flagrantly ignoring the very causes of our current, dire state. Nothing made this more clear than the "How to Bid at an Auction" seminar held at the Lumen Lounge the evening of 7/1/2009.

    With tougher lending standards, and many employers reducing/stalling headcount to mitigate lingering poor company performance, it is understandable for prospective buyers to express pragmatic concerns: "What happens if approval falls through even after pre-approval?"…."Where does my earnest money or 5% deposit go if I lose my job before closing?"…."What average interest rates is the lender seeing/providing these days?" In this landmark time, the worst case scenario is more and more prevalent, so "what if?" These are reasonable questions, by reasonable people, taking appropriate steps to avoid the mishaps that plagued real estate all-too-recently.

    Every one of these valid questions was danced around and/or flippantly evaded. The most direct answer provided by the auction and lending team was that if a buyer was operating "out of the goodness of their heart" (how that is determined is beyond me, as there is no explicit criteria for this) but are unable to complete the purchase (say, to losing a job – a very real possibility looming over many today), the developer has discussed (strictly in conversation), that the earnest money would be refunded. It should be noted that no documentation supports this statement, thus it is a matter of "word." It should ALSO be noted that the developer, on their "word", stated that no condos would be sold prior to auction; as of 7/1/2009, TWO units have actually been sold outside of the auction.

    So who wins? Buyers, who cannot get straight answers? Current homeowners, eager to see increased occupancy – only to risk new waves of defaults? Or The Triad: developer, auction house, and lender, who tout their commitment to putting clients at ease, yet cannot address genuine client concerns?