SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The Residential Real Estate Crash Index
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Smiling Bob who wrote (263880)7/25/2010 3:22:04 PM
From: ValueproRead Replies (1) of 306849
 
"I'd think the end user is more likely to bid higher than the middleman."

Yes, but without the "middleman", as you call them, you fail to get the highest prices. You see, whenever you limit the size of a market, you limit the values/prices that result. That's just an economic fact. Especially in the case of homes, when individuals bid against the pro's higher prices result. That's because individuals are more driven by emotion, and will be thinking that as long a a pro (or pro group) is bidding, good value must be there, so you will have individuals competing at bids higher than may result otherwise.

Therefore, keeping the "middleman" from these auctions will actually result in lower bids, costing the banks and us taxpayers in the process.

I've been to a number of these large auctions, by the way, and noted the efficiencies.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News