Murano in Philadephia Could Sell Condos for a Fourth of the Price

Murano in Philadelphia to hold auction

It’s no secret that the housing market is on the fritz, to put it mildly. Murano condos in Philadelphia, Pa., illustrates the lengths that sellers are willing to go to with its recent decision to auction off 40 of the 178 empty condos in the Murano complex.

The auction sale won’t take place until June 27, but rumor has it that the Murano condos, some of which had asking prices bordering on $1 million, will sell for half — possibly even a quarter — of that. An average Philadelphian will still need a cash loan to buy one, but prices will come down to a much more attainable range.

Varying price quotes

Jon Gollinger, president of Accelerated Marketing Partners, of Boston, which is handling the sale for Murano’s developer, Thomas Properties Group Inc., says that condos once priced at $995,000 could go for as low as $485,000.

However, Gollinger went on to say in Philadelphia Business Today:

“If the reserve published minimum bid is $250,000 and no one bids above it, the condo sells for $250,000,” he said.

…

“I’m just allowing the market, not the developer, to set value, based on what we know to be the critical mass,” he said.

By analyzing the entire market, Gollinger said, he found that $249,000 is the price buyers should find most compelling.

Will auction spark more sales?

Gollinger stressed only a fraction of the Murano condos in Philadelphia will be auctioned off, and the auction is not a “clearance sale.” The building has a total of 302 units. Only 124 have sold, and only 112 of those sales have closed.

That leaves 178 empty condos sitting at Murano in Philadelphia. Gollinger will only auction 40 of those units because he is hoping that the sale of those 40 condos will spur more sales and help eventually fill up the entire Murano complex. ... click here to read the rest of the article titled "Murano in Philadephia Could Sell Condos for a Fourth of the Price"