John Rosenthal of Realty Marketing/Northwest has been auctioning real estate for four decades, from an 1890 Dunthorpe Swiss chalet to a Jesuit retreat center on the Oregon coast. This is the first time, however, that Rosenthal has organized a court-ordered auction to resolve a dispute over a home.
The case: Two owners of a North Portland midcentury house have been ordered by the state’s Circuit Court for Multnomah County to put their 5,000-square-foot property in the Kenton neighborhood on the auction block.
Buy/sell, rent/lease residential &
commercials real estate properties.
The minimum bid is $527,500, the deadline to submit a sealed bid is Dec. 5 and the winner will have 30 days to settle in cash.
“The property is not in foreclosure,” said Rosenthal, whose real estate marketing and brokerage company has offices in Portland and Vancouver, Washington. “There’s a lot of equity in it; it’s just that the two owners can’t agree on the sale terms.”
The advantage of an auction to the court is transparency, he said. The property will be sold at or above the reserve price. “There is no decision to make,” he said. “If the reserve is not met, the court-appointed referee, who authorized the sale, has the authority to either accept or reject the highest bid, or seek a counter bid.”
Unlike homeowners and their listing agents partnering with firms like Concierge Auctions to market the property to buyers worldwide, as was the case with Northwest Portland’s Blackberry Castle estate, for this home there is no online bidding, early bidding or incentive to the first bidder.
Realty Marketing/Northwest also doesn’t accept an escalation clause, in which the potential buyer would agree to beat a higher offer. “You have to give us your best bid,” Rosenthal told The Oregonian/OregonLive. “If we have two comparable bids, we’ll go out and get the best and final bid.”
A drone video and auction flier describe the 1952 brick house with 2,403 square feet of living space at 3526 N. Farragut St. The dwelling includes a self-contained apartment in the finished basement with a fireplace in the living room plus a kitchen-dining area, bedroom and full bathroom. The lot also has a detached garage and covered patio in the fenced backyard.
The property is being sold “as is,” meaning no repairs or improvements will be made before the deed changes hands. Realty Marketing/Northwest includes a detailed home inspection report in the bid package (800-845-3524 or [email protected]).
The home, which is occupied, is available to see at 2 p.m. Saturday, Dec 2.
Bidders have until Dec. 5 to deliver their sealed bid. The minimum bid is $527,500 or $220 a square foot.. The median price of recent neighborhood sales was $342 a square foot, according to the online real estate marketplace Redfin.
The median list price for a single-family home in the North Portland area over the last 30 days is $499,000, with almost all (99.3%) selling for the asking price, according to Redfin.
Each auction has its own rules, terms and conditions but all require preregistration and a deposit. Realty Marketing/Northwest has conducted court-ordered auctions for commercial and industrial properties.
The Kenton residential property on the auction block “provides opportunity for renovation by the new owner,” said Rosenthal, and is near the University of Portland, Peninsula Elementary School and Ockley Green Middle School. Also nearby is Columbia Park with sports fields, courts, walking trails and picnic areas and the North Interstate and North Lombard MAX Station.
— Janet Eastman | 503-294-4072