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Summer Rental Auctions Close Far Below Asking; Victory for All!

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Upstart online property auctioneer BidOnTheCity kindly has sent along a press release to tout the results of its first BidOnNotTheCity Hamptons summer rental auction that took place last Friday (and was, uh, apparently live broadcast on PlumTV). Seems just three of the five properties rented under the terms of the reverse auction in which the rental price dropped $500 every 15 seconds until someone agreed to the current asking price, thereby ending the auction. So how did the places fare? Above, at 7 Hannahs Court in Southampton—a property Corcoran's got listed for sale for $2.995 million—the initial $135,000 asking price for its summer rental dropped to $89,000 before it found a taker.

Equally brilliantly, a rental at 120 Halsey Lane in Water Mill opened at $75,000 and closed at $49,000, while up in Sag Harbor, 9 Northside Drive started at $49,000 and dropped to $22,000. Two other properties did not rent.

What does this mean for the BidOnTheCity business model? Why, wonderful things, of course! Crain's quotes one of BotC's cofounders thusly: "It's a very good sign for us. The bids came at levels more-or-less acceptable to the owners." More or less acceptable! Yes!

Meantime, longtime Hamptons broker Diane Saatchi, now of Saunders Real Estate, points out that the prices probably represent neither a huge win nor a huge loss for owners. The property at 120 Halsey Lane, for instance, rented for about $50,000 last summer after initially being listed for $67,000. Welcome to the future, friends.
· Hamptons Summer Rentals Go for Cheap [Crains]
· Bid On Hamptons Properties []