For a little over two weeks now, Matthew Ferrara has been on an international speaking tour, visiting such places as Australia and New Zealand at the AREC and Hartcourts International conferences. In todays blog, "Out from Under with an Idea from down Under," Matthew shares an interesting idea on how the United States could clear out the excess and distressed inventory.
In Australia and New Zealand, homes sell weeks, not months. In some areas, more than 60% sell in four weeks – with cash non-contingent offers and 10% non-refundable down. That’s just about the time it takes the average U.S. agent to finagle their first “price reduction” from their irrational sellers. How can this be the case, in a country where mortgage interest isn’t tax-deductible and the 30-year fixed financing is unheard of?
Simple. Down Under, they sell homes just like any other commodity: They auction them!
Take a moment to read the full post for some great reasons why this might just be what the US economy needs.