Telluride Real Estate News

See Forever Village Takes New Tack in Marketing Resort Real Estate

by Greta Stetson Jun 25, 2009

Posted by Erin Eddy

www.ourayland.com

Real estate buyers have until August 14 to name their own price on seven pre-furnished luxury residences in Mountain Village. That is, as long as the price they name is $2 million, or more.

The last seven vacant condominiums at See Forever Village at The Peaks are on the market this summer by way of an online bidding system.

See Forever developer John Abrams hopes his “Developer Celebration Sale” will inject some new enthusiasm into the Telluride real estate market and establish a new mechanism for the purchase of resort property.

Just north of The Peaks, See Forever Village is a set of 24 condominiums and four freestanding residences that overlook the Telluride Valley Floor. The units, fully furnished by The Decorator's Unlimited, are also managed by The Peaks, a contract that gives See Forever Village owners access to housekeeping services, maintenance, membership to the Golden Door Spa, and other amenities.

Construction, which was divided into three phases, started on the project in 2002, and units started selling in 2004. Now, to sell the last seven, Abrams is responding to a changed market.

“It's no longer a seller's market,” he says. “It's a buyers market.”

Abrams believes that there are still buyers who would like to own Telluride real estate, but they haven't gotten the push they need: a good deal. Marketing consultant Lynette Hegeman says that, rather than just lowering the price, See Forever's new bidding system allows interested parties to name a price they think is reasonable.

Under the system devised by Abrams and Hegeman, buyers can start making bids online after they submit a $25,000 deposit, which is fully refundable if they don't submit a bid that is accepted. Four of the units' starting bids are $2 million, two of the others start at $2.7 million, and the final one is $2.8 million. The condos range from 2,580 to 3,441 square feet.

Abrams also has also established a maximum price for each of the residences; if a buyer reaches the reserve price, the bidding will stop and they will get the condo immediately. Otherwise, the residences will go to the highest bidder, but even that doesn't guarantee a unit. Just because bidding for a unit starts at $2 million doesn't necessarily mean that Abrams will accept that price.

“John Abrams isn't here to give away units,” he says. “I didn't work this hard to sell these units at a ridiculously low price.”

Abrams adds that he isn't desperate to sell the rest of See Forever; since the units are fully built and his construction loans are paid off, he is not losing money while the condos are vacant. Rather, Abrams wants to sell because that's what developers do.

“My incentive is to turn over units and invest the money in other projects. I'm not in the business of sitting on real estate,” he says. “This is not a distress sale. This is a marketing model.”

Hegeman adds that anyone considering buying luxury real estate could probably afford one of the condos without the sale.

“A lot of [potential buyers] don't have to worry about financing,” Hegeman says.

The difference, now, is that these “smart, savvy” buyers are getting a good deal by being able to choose their price, Hegeman says, and if wealthy potential buyers see a good deal, they'll take it.

And in a low-price market, Abrams knows that buyers won't bite without “all the bells and whistles,” including spacious rooms, furnishings and views.

Abrams entered the real estate market in Mountain Village 15 years ago, when he bought and later sold a penthouse at The Peaks. He went on to build ten homes in Mountain Village and The Lodge at Mountain Village. He started building See Forever Village seven years ago, with the pitch that owners there would be liberated from the chores that go along with owing a single-family home.

“There are a lot of second-home buyers that want the convenience of not having to worry about things like summer yard work and mechanical engineering,” Abrams says. “They simply buy a unit and move in.”

Hegeman suggests that the online bidding model for marketing resort property could help stimulate the slow economy. While many developers have cut back on marketing, Hegeman hopes the Developer's Celebration Sale will make waves beyond See Forever Village.

“Other developments might see some response,” she says. “If we sat around and did nothing, nothing would happen.”

Along with advertising in local media, See Forever Village is offering lodging discounts to any buyers who want to visit Telluride to physically tour one of the units. It's also including local brokers, offering them a four percent commission for any of the seven units they sell.

Early in the sale, two of the seven available units have received bids. Hegeman explains that one reason the sale is summer-long is so potential buyers have time to do their “due diligence,” and research other real-estate opportunities. She adds that the sale, which began Monday, June 15, has received positive feedback from current See Forever residents and past prospective buyers.

Telluride Properties agent Brian O'Neill, who lists condominium units at the Capella Telluride, says that while the online bidding system is not necessarily a new idea, it is a creative one that might turn the market “a little bit.” At the Capella, units range from $850,000 to $7 million and 850 to 4,500 square feet.

“Two-million is a great value for one of those units,” O'Neill says.

To entice buyers, Capella is offering a 20 percent discount on the price of the condominium, a year's worth of free homeowners association dues and other benefits. O'Neill says that numerous guests have expressed interest in buying Capella condos, but that interest doesn't necessarily lead to a sale, especially when buyers think that prices could drop even further.

“I'm worried about people actually buying,” he says. “It takes quite a while for people to believe that we're actually at the bottom.”

Abrams agrees that now is a good time to buy Telluride real estate. Because of the slow economy, new properties are not being developed, so once all the available properties are sold, prices will increase dramatically in the three to five years it takes for developers to bring new inventory on the market. He adds that, in his 15 years of real estate experience, he has seen the market cycle from high to low at least three times.

“Once you see the low-lying fruit taken off the market you'll see prices go up.” Abrams says. “I've seen that the market goes down, corrects, and then goes up even higher.”

For more information on the See Forever Village Developer's Celebration Sale, go to www.seeforevervillage.com.