President Trump’s Childhood Home Sells at Auction

Flipper makes 53% return in 30 days using the auction method of marketing real estate.

President Donald TrumpA New York real estate investor purchased the childhood home of President Donald Trump this past December for $1.39 million. Throw in the auction method of marketing and a 30 day auction marketing plan sales price of $2.14 million is achieved. A 53% return on investment. And they say auctions are the method of last resort, fire sales and giving your property away.

 

CBS News reports that president’s father, Fred Trump, built the home in the Queens neighborhood around 1940, and the Trump family lived there for 10 years before moving around the corner.

The Trump homestead offered five-bedrooms, 4.5-bathrooms, an eat-in-kitchen, formal dining room, fireplace, screened patio, den, finished basement, and hardwood floors along with a two-car garage.

Michael Davis purchased the home in December from Isaac & Claudia Kestenberg, who purchased it in 2008 for $782,500 and later sold it as part of divorce proceedings. The Kestenbergs  wanted to auction the house in October, after the third debate between the Donald Trump & Hillary Clinton. However, they chose to postpone the auction after “significant media attention.”

The home’s address is 85-15 Wareham Place in Jamaica Estates, in New York City’s Queens neighborhood. This is the address listed as the home address on the president’s birth certificate. Median home sales in the neighborhood is $850,000 according to Trulia.

Mr. Davies sold the home at auction grossing 2.5 times the median home value in the neighborhood, that is a deal that Donald Trump himself would be proud of. How do you place a value on the childhood home of a President of the United States? Simple you tell the market what day it’s going to sell and allow them to financially compete to own it.

The losers in this deal are the Kestenbergs. When “significant media attention” happens in the auction industry we call that “free advertising”!

Read the CBS News Article Here

Tom Brady’s Stolen Jersey Estimated at $500,000?

Auctions Determine Real Market Price

Tom BradyThis past Sunday, NBC Sports reported Terry Bradshaw’s playoff jersey from 1977 fetched over $66,000 at auction! Included in the same auction a Franco Harris jersey went above $60,000 and a  Mel Blount jersey topped $40,000. (You can read the full article here) Take note that when the rich and famous sell their prized assets they use the auction method of marketing to establish the market price.

The official police report states the value of Tom Brady’s missing jersey at $500,000. With realized prices of the Bradshaw, Harris & Blount jerseys the estimate may be pretty close considering the historical Super Bowl significance of the Brady jersey. Or is it too low? How do you price such an item? Simple, you let the market decide. Now that the jersey has been stolen and taken on a life of it’s own with it’s very own provenance the estimated value may prove too low if in fact it is ever returned to Mr. Brady and placed on the auction block. It may very well be the most famous football jersey in the world.

Terry Bradshaw, Mel Tillis and an auction crew…

Speaking of Terry Bradshaw… About 15 years ago I worked the Branson Collector Car Auction. In those days the auction was held at the Mel Tillis Theatre in Branson, MO. The auction lasted all day on Saturday and most of Sunday. One caveat to holding the auction at the Mel Tillis Theatre was that the auction on Saturday must be completed by 6PM so Mel’s show could go on.

Following the auction, several of the auction staff had a rare opportunity to converse with Mel’s longtime bass player. He entertained us with stories of being on the road with Mel and the rest of the band. Several of those stories included Terry Bradshaw. While I cannot share some of those stories on this page, I can say that those days in the 1970’s and 80’s must have been highly entertaining while in the presence of Mr. Tillis and Mr. Bradshaw. Few people can make me laugh like Terry Bradshaw, I’m sure unhinged and without cameras he would keep you in stitches.

The bass player wrangled us up some tickets for Mel’s show and while Mr. Tillis was well into his 70’s he never missed a beat and put on an awesome show. The auction profession has allowed me the distinct opportunity to travel all over the U.S., meet some great people and hear some fascinating stories.

Maybe someday I will get the opportunity to auction off Mr. Brady’s famous jersey. The odds are slim, but in this business you never know.

~Brent

 

Auctions Eliminate Holding Costs and Overpricing

overpricing costs youThe market always has the right answer; you just need to know how to ask the right question. Auction?

This past April a friend contacted me about selling his 100-acre horse ranch. He and his wife were going through a divorce and the court was appointing a receiver to sell the property. The auction method was a perfect solution – achieving market value and reducing holding costs and time. Time was important because each party was responsible for this property as well as their own, separate household. Reducing the marketing time would increase their net from the property and complete the divorce proceedings.

As we do with all real estate auction properties we conducted a thorough price expectation evaluation. After completing our evaluation, we set an auction expectation of $700,000 to $800,000. The estimated expectation did not set well with either party as they wanted over $1,000,000. The couple’s expectation of price was one of the few areas of agreement. Enter the traditional broker with a suggested list price of well over $1,000,000. Husband and wife, eager for the highest return agree that the broker should list the property and thus the broker was appointed the receiver and ordered to sell the property.

Several price decreases and 10 months later the property closed! Sales price? A whopping 54% of the original list price! Originally listed for $1.2 million the property closed for $650,000, much to the disappointment of both husband and wife. I wonder how the parties would have taken it last May if the broker said “I’m going to list it for $1.2 Million but I’m going to actually sell it for $650,000.” I reckon the auction method would have been a much more acceptable option.

Overpricing is bad for the real estate professional.

The practice of overpricing by this broker to get the listing cost this couple an easy $100,000 in additional and unnecessary holding costs and sale expenses. Auctions are truth serums. As experienced real estate auctioneers, we know that our papers will be graded by the market within 60 days of discussing price expectations with the sellers. Our rigorous method of evaluating price is time tested and proven. However, it is not always welcomed news for sellers to hear.

The professional real estate industry will continue to suffer until we, as an industry, deter the practice of overpricing. What if sellers told listing agents “If my property sells for 85% or less of your suggested price I don’t pay you any commission”? I suspect we would stop pulling list prices out of the clouds and get a bit closer to market value.

We at Alliance Auctioneers will give you an honest assessment of your property – every time. We will get up every day and keep working to change the perception of the oldest, most proven marketing method on earth. Auctions work!