What's happening? Four Puerto Rican bidders took home all five properties offered at the first live public nuisance auction held by the Municipality of Isabela, on June 25 at the Anfiteatro Justo Méndez Cabrera.
Competitive bidding pushed the prices of the two lots and three properties that were auctioned up significantly. Opening values ranged from $17,000 to $34,500, but the properties sold for $39,000 to $95,500. One of them sold for more than triple its opening price.
Why it matters. Many Puerto Ricans see buying public nuisance properties as a way to own a first home or to invest in real estate, at a time when the average price of a used home on the Island is around $238,418 and a new home around $418,064, according to data from the Oficina del Comisionado de Instituciones Financieras (OCIF).
That means even the highest-priced property sold at the auction came in well below the average home price, though it will require repairs, construction or demolition.
These are the buyers from Isabela's first public nuisance auction
1️⃣ Sofía Valle, from Isabela: The dream of a first home in her hometown
Valle and her husband were first on Isabela's bidder list and won the first two properties announced: two side-by-side lots on Calle Marina (identified as IS-54 and IS-62), which opened at $17,000 and $34,500 and sold, respectively, for $55,000 and $95,500, the highest price of the auction.
Standing on the ocean-view lots, Valle told Platea that she experienced it all as a divine plan. A native of Isabela, she returned to Puerto Rico with her family two years ago after living nine years in the United States.
Last year, she walked down Calle Marina and asked about the owners of these lots, not knowing they were in the process of being acquired by the municipality and would now be hers, if she completes the payment within the 90 days provided.
"I still can't believe it. It's like a dream. It was a goal we had. We put it in God's hands and I'm still… I'm happy," said Valle, who attended the pre-auction on June 4 to clear up her questions and visited the properties before going to the auction.
Plans for the property. "We want to build a home. We're from here in Isabela. We've been back for two years and we'd like to build a home," Valle said. It would be her first property and primary residence.
What does she think of the auction? "It was very organized, I really liked the atmosphere. It was very formal, very respectful, very organized above all. So I hope to keep participating, who knows, in another one in the future," she said.
Recommendations for others who are interested. "Dare to go. It's simple, it's a very good dynamic. Very organized, very respectful. Go for it, don't be afraid. This was my first experience," she said.
2️⃣ Sandra López and Joseph Bevilacqua, from Isabela and Aguadilla: The desire to return to their island
Sandra López and Joseph Bevilacqua are originally from Isabela and Aguadilla, but have lived in Vermont for 11 years. When they heard about the public auction, they decided to take part. They arrived on the Island the Monday before the auction, visited all five properties and decided to bid.
They won a house (IS-99) on Avenida Lulio Saavedra, formerly known as Avenida Estación. Its opening price was $19,500, and it was awarded for $75,500. "Very nice, we're very happy," López told Platea at the end of the auction.
Plans for the property. "We're going to demolish, restore whatever needs to be restored, and maybe in the future return to our beautiful Puerto Rico," López said. "The plan is to come back, but if a rental were to happen in the meantime, it would be to rent it out."
"They give us one year to clean up, leave the property clean, and we have up to three years from then to start building and for someone to start living on the lot," Bevilacqua said.
What do you think of the auction? "One of the things that impressed me was the organization. Very organized from the moment we got in line. Very friendly, very organized. And yes, we had to fight a little, but when you want something you fight for what you want," López said about the bidding process.
"I really liked it. You arrive with a lot of emotions, and the auction itself was the same. It was very exciting. And we truly hope that in the future we can do it again," Bevilacqua said.
Recommendations for others who are interested. "We recommend it 100%, and who knows if we can make it to the next auction," López said.
3️⃣ Liliana Rodríguez, from San Juan: Building for her family
Liliana Rodríguez arrived in Isabela from San Juan with her partner intending to observe the auction process, but she ended up taking home an abandoned house on calle Amapola (identified as IS-125), which started at $30,000 and which she acquired for $39,000.
"When I found out about this event, I was interested because I had seen a lot, but unfortunately another young man got that lot. Then suddenly this one appeared. We hadn't come to see it. I understood it was a ridiculously reasonable price. But I said: OK, here we go. Scared, but we have to go for it, and that's what happened," Rodríguez told Platea while seeing for the first time what will be her new family project.
Plans for the property. "Everything I want to do is for my children, for my family, so they can stay here. That's my plan. Little by little it will get fixed up. There's a lot of work. It's going to be an uphill job but not an impossible one," Rodríguez said.
What do you think of the auction? "Great, really good. Extremely fair. At least everything I saw was people from here. I came in with a different expectation. You pick up a lot of noise in these processes. And then I said: I'll go to investigate, but I really didn't expect this to happen," she said about her experience.
Recommendations for others who are interested. "You have to go for it. When we walked in, one of the first things I said to my partner was: There are a lot of people here and it looks like a lot of them have money. I don't know if this… But anyway, the last thing I thought would happen did happen. It's possible. But if you don't go for it, things don't happen," she said.
4️⃣ Jorge Medina, from Guaynabo: Looking for a vacation home
From Guaynabo, Jorge Medina has taken part in auctions at banks and other entities, but this was his first experience with a municipality. He looked at all the properties and was interested in two of those in town and two lots.
He won an abandoned structure on avenida Lulio Saavedra (IS-98), with just over 400 square meters. It had a minimum value of $34,500 and sold for $78,500.
Plans for the property. "It's a corner lot, 500 meters. There's an abandoned house that needs to be demolished to see if we build a second home there for weekends, for vacationing," Medina told Platea at the end of the auction.
What do you think of the auction? "Very good, very organized, very transparent. Very easy," he said.
Is it worth investing in a blighted property? "The lot could run $100,000, but it's 500-something square meters — given how expensive properties are, that is a good price. You want it to be cheaper, but everyone wants it," he said.
What will happen to the properties now?
After winning the auction, the bidders signed a contract with the Municipio de Isabela and handed over a $5,000 check as a deposit, which is deducted from the final sale price.
They have 90 days to complete the payment. They can pay by bank transfer, certified check or cash, according to the auction rules. That is when they will receive the title to the property in their name.
Once payment is complete, they will have one year to bring the property out of public-nuisance status, which means they must clean it up, rebuild or demolish. The period could be extended at the bidder's request, especially in the event of a natural disaster or force majeure. After that, they have three years to reside in the space, depending on the case.
If they fail to complete payment or repair the property, the municipality can exercise the right of conventional redemption, which cancels the sale and the agreement, with the possibility that the bidder loses the deposit and faces penalties.
When is the next Isabela auction?
The municipality expects to hold a next auction, both affordable and live-bid, within the next six months, though no exact date has been set.
This content was translated with the assistance of Artificial Intelligence (AI).
