A Buyer's Market can be easily defined as a market where there are more sellers than there are buyers.  In a Buyer’s Market, sellers are getting frustrated as their properties remain on the market for longer and longer market times.  In many cases, sellers will “chase the market”.  This is where a seller will adjust the price just behind what the now market value is. 

In a Buyer’s Market, an auction is mitigating carrying costs.  Carrying costs are what it costs to own a property every month.  This is often thought of in terms of Principle, Interest, Taxes & Insurance but in reality includes other intangibles like liability, deferred maintenance and stress.  I often hear from people that they don’t have carrying costs because they don’t owe anything on the property.  In that case we are looking at the opportunity cost of the money that should be in their pocket.

If you have questions about purchasing a home at auction; please contact Richard Purchas or Joe Temme for more information.