Huge foreclosure sale a sign of times

The pile of manila folders — each containing information about a specific foreclosed property set to be sold by Charleston County — was so tall last week it wouldn't fit in the wheeled plastic bin that usually transports the files down to the auction spot.

So Master-in-Equity clerk and auctioneer Harriet Hendricks unearthed another bin that had cracked, repairing it with duct tape so it could hold the towering overflow of folders. "I had to bring it out of retirement," she said.

In a sign of the times in the residential real estate business, Hendricks presided over a marathon foreclosure auction of nearly three dozen properties Tuesday, reading off a string of legalese and soliciting bids for more than 90 minutes.

Two weeks ago, Master-in-Equity Judge Mikell Scarborough eyed the auction list and declared it the largest number of distressed homes he's seen go on the block at one time during his five years in office. Sensing it was going to be a long session, one auction attendee decided to sit down on the floor, just three bids into the sale.

In all, more than 100 people crowded the terrace outside the Charleston County Judicial Center. Those who stood farthest from Hendricks strained at times to hear the bidding because of a loud clamor from a nearby construction project.

The unusually high attendance seemed to get the competitive juices flowing.

Investor George Jellyman prevailed over 57 other bidders for a luxurious-looking Johns Island home with a dock. The bidding started at $309,636 and climbed steadily — usually in $1,000 increments — until topping out at $427,000.

"I still haven't seen the inside of the house," Jellyman said afterward.

Other notable transactions included two abandoned homes that Habitat for Humanity built in the upper peninsula area; both went to James Peterson of Honest John's & Associates Record Shop on upper King Street. Bidders also went wild for a Dunes West property in Mount Pleasant. But most of the homes — 25 out of the total 33 — went back to the lenders that financed the mortgages.

Hendricks also called off an initial bid of about $4.7 million for a 30-acre Park West property that was supposed to be developed into a town center-like commercial area named Cambridge Square. The final bidding for that property is scheduled for June 5.

Green premium

All this talk of falling home prices raises a question: What features are home buyers willing to pay more for?

Environmentally friendly amenities appear to be fetching a premium, according to a study by investment company Calvert Group and the Boston College Institute for Responsible Investment.

The survey, released last week, found that buyers are willing to pay a premium of $18,500 on average for greener homes.

The goal of the study was to determine which national home builders were adopting environmentally sensitive standards. Conclusion: None of the largest players has "fully embraced the emerging market of sustainable building design and construction," though some are doing better than others.

Most of the national builders that develop communities in Charleston did well, including No. 1-ranked KB Home of Los Angeles, Texas-based DR Horton, Miami-based Lennar Corp. and Dallas-based Centex Corp.

More on shorts

South Carolina real estate agents interested in today's Business Review cover story on short sales can find more information on the trend later this month. The South Carolina Association of Realtors will host a one-hour online forum at May 22 starting at 10 a.m. Local real estate professionals who are members of the Charleston Trident Association of Realtors can sign up through the state association's Web site, www.screaltors.com.

The session isn't open to the public. Potential home buyers who want to find homes that could be sold through a short sale should ask a local real estate agent to search the association's Multiple Listing Service database.

Reach Katy Stech at 937-5549 or kstech@postandcourier.com.

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