AUCTION AUCTION AUCTION EVERY WHERE AN AUCTION
Vail/Lionshead, Beaver Creek, Bachelor Gulch, and Arrowhead
We are seeing a push to create a real estate auction market here in the Vail Valley. So are auctions the answer to getting everyone off the fence? Will it get the market moving? Who comes out the best?
Sellers who send their real estate to auction are finally really sellers. The caveat is that this is true only if the reserve (minimal accepted bid) is at a realistic price when their past listed price was not realistic (did not bring forth any buyers). If it is too high then it will still be unsold real estate since they are in de facto the highest bidder.
Buyers who show up as end users along side the speculators and bid can create the new bar to create sustainable comparables. If just speculators show up, the reserve may never get met. If the speculators do the bidding, have we really learned where the bottom is?
The first auction in Vail will be July 28th and we will learn pretty quickly who the winners are. The prospective bidders will have $50,000 deposited into a holding company and be able to close in 30 days max, then Katie bar the door.
Can we get real movement? Can we get a new base line from these sales? Only time will tell.
The market will turn when the banks make loans (ask anyone trying to market or buy or refinance real estate and the reality is the banks do not want to lend, forget what the banks PR teams are putting out). Low rates and low prices only work when people can borrow the money needed to buy the properties and the prices create incentive to buy.
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