Biggest Sales Event in Oregon Real Estate History
LAKE OSWEGO, Ore. – December 17, 2007 – Buena Vista Custom Homes announced today that the company sold 141 homes during the past weekend’s home auction at the Oregon Convention Center.
The 141 sales generated a total of $65 million dollars in sales which is believed to be the largest sales event in Oregon real estate history, as well as the largest real estate auction by a single seller. The event drew 2,209 attendees who bid on the 240 homes offered in the auction.
The owner of Buena Vista Custom Homes, Roger Pollock announced prior to the auction his intent to use the event to sell the company’s inventory of completed homes. Prior to the event there was much speculation about the “reserve prices” which are standard in a real state auction. Buena Vista set their reserve prices to mirror their costs. 96% of the homes sold were sold under the “reserve” price.
The auction was conducted by Real Estate Deposition Cooperation (REDC). REDC, based in Irvine, California has been in the auction business for over 20 years and has done hundreds of auctions. The Buena Vista auction of 240 homes was the largest auction that REDC had been involved with.
Homes offered at auction ranged from 1,113 to 5,073 square feet and were located in some of the areas of highest demand around the Portland metropolitan area. Additionally 29 homes were also included from the Bend, Oregon market. Homes sold from as low as $195,000 for a 3 bedroom 2 ½ bath home in Sandy, Oregon to $510,000 for a 5,073 4 bedroom 3 bath home in the Shadow Ridge subdivision in Happy Valley, Oregon. Virtually all areas were strong sellers with two exceptions, the homes being offered in Bend (29) and Buena Vista’s portfolio of rental homes. None of the homes in Bend sold and few of the rentals found buyers.
Pollock Pleased With Outcome
The company’s move to enlist their entire standing inventory in the auction was an aggressive move, but reduction in inventory will allow Buena Vista to become a land buyer again, taking advantage of dropping prices for build-able lots.
“We came to the auction to sell, and we did just that. To sell 141 homes in less than 48 hours is truly remarkable, said Pollock”. The company now plans to move to a much more conservative model of offering few finished homes, built on speculation of future sale and more pre-sold to buyers. “We will still be an aggressive player in our market. The sale of the homes from the auction puts us in a great position as a buyer. There are some great deals to be had out there right now on lots,” added Pollock.
Event Nets over $250,000 for Oregon Charities
Buena Vista will also be donating over $250,000 from the event to area charities as part of Pollock’s “Profit Partners” program. The program donates a portion of each home sold, regardless of price, to 19 area charities.
Earlier this year, Buena Vista announced the one millionth dollar donated to these charities since the inception of the program in 2002.
Profit Partners who will receive proceeds from the auction sales Include:
Buena Vista Often Recognized for Strong Sales and Growth
Recently, Buena Vista was named the No.1 single family homebuilder in Oregon and SW Washington by The Portland Business Journal. In addition, BVCH has been named as one of the top 10 fastest growing builders in the U.S. for the past three years. In 2005 the company recorded the fastest growth of any builder in the nation. This past year, Inc. magazine also named the Oregon Home Builder to their prestigious list of the fastest growing companies in the US.
Pollock was initially cautious about what type of message an auction would send, but asked himself, “Did we overbuild?”, and after answering “Yes”, he quickly decided that it would be an innovative sales strategy to move out the overbuilt inventory.
The company has many projects on the horizon for the future. In early 2008 the company will embark upon new neighborhoods in Tigard, Oregon City, Southwest Portland and Happy Valley.
About Buena Vista Custom Homes:
Buena Vista Custom Homes is a custom builder dedicated to making the dream of purchasing an affordable home a reality. Buena Vista currently has developments in Hillsboro, SW Portland, Beaverton, Tigard, Wilsonville, Happy Valley, Cooper Mountain, Murray Hill and the Tri-Cities. Buena Vista was named the fastest-growing business in Oregon by The Portland Business Journal. In 2004 and 2005, the Daily Journal of Commerce named Buena Vista the 2nd largest Luxury Home Builder. In early 2005 the Portland Metro Home Builders Association honored Buena Vista with their “Building Excellence Award” as well as presenting them with the honor of “Best Builder Website.” In late 2005, Builder Magazine named Buena Vista the fastest growing builder in the U.S.