Buy Now Event: Gallery Sells 8, Avg 12% Below List

In following up with the team at the Gallery, they report eight sales in last Saturday’s Buy-Now event with purchase prices averaging 12% below the last listed price. The late-breaking switch from an auction format was initiated because:

It became evident by last Thursday, March 3 that the open, one-bedroom unit type was attracting a niche market of potential buyers and that a select few units would be successfully sold at auction.  This market was comprised of first-time home buyers, many of whom were having difficulty securing financing in a short time frame, and investors.

In order to preserve the value of the homes in the building for existing homeowners and to maintain a low percentage of investor purchases in the building, we determined that a one day sales event would be a better mechanism to achieve sales with these goals in mind.

The sales from last weekend bring Gallery to 86% sold, with 35 condos remaining to sell. The building is located at 2911 2nd Avenue in Belltown, and still holds both FHA and VA financing approvals.

About katrina
  • David

    The Gallery thought only a select few units would be successfully sold at auction, so their solution to make it succeed was to make it even more difficult for first-time home buyers to purchase? When it comes down to it, anyone who has been following the Gallery “Auction” event knows that the last minute change came down to them sacrificing their business’ integrity in order to make more money. They thought more people would be interested in buying units, and when they realized that not enough people had registered to significantly jack up the prices during the auction, they pulled the plug. They took a risk to advertise these minimum bids to gain public interest, but when this risk did not pay off, they would not honor their word. If they could not afford to sell the units at those prices, they shouldn’t have advertised such low minimum bids in the first place. In their minds, it was alright if their advertisements mislead consumers, so long as it was beneficial to them. However, when they realized that their advertisements were about to result in what the consumers wanted, they tried to create as much separation from that advertisement as they possibly could. If the Gallery is not willing to uphold the promises made to potential buyers, do you think the Gallery will uphold their promises once you became a homeowner? This kind of experience makes first-time home buyers, such as myself, hesitant to even purchase a home at this point. During a time where the real estate market is struggling, discouraging a room full of potential home buyers from purchasing homes is not the best strategy. I am currently in the process of filing a complaint to the Attorney General, not expecting to profit in any kind of way, but to hopefully prevent businesses like this from being able to conduct future false advertisement practices, without the proper repercussions.

  • Chip

    Why is everybody saying “real-estate is struggling”?

  • Vinh

    Because real-estate is struggling…

  • Gallery owner

    David. I’m very sorry that you and many others were the pawns in this deceitful and unethical act by the developer, Schnitzer NW. But as a very happy homeowner in the Gallery Building, I hope you understand that “the Gallery” is the group of homeowners that currently own properties here, as capably represented by the Gallery HOA board. Just to be clear, “the Gallery” is not trying to sell you a home and fix the selling mechanism to jack up the prices. The developer, Schnitzer NW is doing this. To us, they are just another owner trying to sell their unit(s). The distinction is, once you become a homeowner at Gallery, you don’t have to deal with the developer any more. You become part of the community and you will be welcomed. I hope you can distinguish between the developer and the building, because we all really like our building, we are not trying to con anyone, and the sooner Schnitzer ceases to be a homeowner the better.

  • David

    I understand and apologize for categorizing all of the current homeowners at the Gallery. We were definitely pawns in the developer’s game, and hopefully there will be some sort of repercussion for what happened. I hold nothing against the current homeowners, and I’m sure it would have been great to live there had this entire event been followed-through with as promised.

  • Amir

    Funny how 12 days after their “one day sales event” they’ve listed one of the units on the MLS at the SAME EXACT PRICE if I remember correctly … http://www.redfin.com/WA/Seattle/2911-2nd-Ave-98121/unit-610/home/21617006. How generous of them to continue the “sale” for so long!