PANAMA CITY BEACH — A new luxury house by the sea will soon be purchased for cash at an upcoming auction.
According to Tara McLean, president of Elite Auctions, her company, which orchestrates high-end real estate auctions across the United States, will hold an auction on July 2 for a $5.25 million home in Panama. City Beach.
Located at 12401 Front Beach Road, the property is fully furnished, spans 3,910 square feet, and has four floors, six bedrooms, and seven bathrooms. Its construction was completed earlier this year.
“I think whoever buys this house is going to get an amazing deal,” McLean said. “It’s a beautiful house, and we’re hoping to sell out on auction day. Hosting an auction (is) fun, it’s exciting (and) people love to compete.”
She noted that only bidders who register through her group website can participate in the live auction. They should bring a cashier’s check for $50,000, which the bidder will keep if the bid is not accepted.
“People think of an auction as a distressed fire sale, and that’s not the case at all (with this auction),” McLean said. “(The seller) just wants to set a deadline and move on, and that’s a great way to do that. … An auction brings together multiple buyers at the same time, lets them compete, and determines the value of that property. “
Susan West, president of the Central Panhandle Association of Realtors (CPAR), said such an auction is extremely rare in the area, especially in an ongoing seller’s market dictated by inflated real estate prices.
That said, West noted that auctions create a sense of urgency, which could pique the interest of more buyers.
“It’s not common at all,” she said of the event. “In my past experience, during (a) downturn, a recession, (auctions) happen more frequently. In this type of market…it’s just not really common.”
Debbie Ashbrook, CEO of CPAR, agreed. She also said that many “hot properties” for sale in Panama City Beach receive a dozen or more bids, which is somewhat like an auction, but without the rigid timeline.
“In a way, it’s like having an auction,” Ashbrook said of many standard home sales. “I think because of the market we’re in, auctions aren’t popular.
“…In today’s market we’re in, you put your home on the market and buyers don’t have to show up with anything. The seller gets a list of all the offers and… he makes a decision that way.”