Palisade Palms in Galveston up for Auction.

Kennedy Wilson is auctioning off 27 unsold condos from the developer of Palisade Palms, a hi rise luxury condo development in Galveston. There advertisement in the Houston Business Journal grabbed my attention because it listed starting bids from $125,000. Like most auctions, the auctioneers advertise low starting bids but when you read the terms its auction is far from absolute and they have a unpublished reserve.  What that means is you can go through the entire process win the auction well over the starting bid of say $125,000 and the seller can still refuse your bid. I have had numerous investors go to auctions like this and report back that the seller demand a much higher price than the winning bid.

In looking over the terms you must do inspections up front on the units before the auctions, be preapproved with a lender and then provide proof of a $5000 cashiers check before even bidding. You get to keep your $5000 check unless you win. I am guessing with those kind of restrictive auction requirements and little demand in the 2nd home market there will be little demand.

Auction Brochure (PDF)

Floor Plans (PDF)

Auction Website

If you are interested in bidding contact me to find out what past condo’s have sold for in the development and how long the units have been for sale.