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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Smiling Bob who wrote (263880)	7/25/2010 3:22:04 PM
From: Valuepro	Read Replies (1) \| Respond to 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.