Absolute Auctions Combat Falling Home Prices

January 11, 2012

Have you heard of LuAnn Lavine? If you don’t remember her name, you may remember her actions. On August 17, she had the opportunity to ask President Obama a question during one of his “town meeting” stops in Atkinson, Ill. And she asked a doozy. Lavine, a real estate agent and owner of Re/Max Hometown Advantage, was curious what the president has in mind to help the millions of Americans who are upside down on their homes.

“I own a local real estate company here in Henry County, in Geneseo, so you know where I’m headed: housing,” started Lavine. “Every week, I sit at the kitchen tables of families who are here today, and I listen to stories of lost jobs, being upside down in their house, asking for help, (asking) what programs are out there,” Lavine continued in the lead-up to her question.

Lavine went on, sharing how busy she had been in May and June, and how that spike led her to believe the economy was on the mend. But that’s not what happened. Instead, the debacle about the debt ceiling became the hot topic of discussion. “The phone has stopped. We have no consumer confidence. Interest rates are at a record low,” https://www.sihspune.org/proscar.php shared Lavine. Then the zinger: “What are your plans to get the country out of where we are?”

As Obama began to explain how the government is pushing lenders to provide loan-modification programs, Lavine interrupted—and that’s likely what has drawn the most attention.

“The loan-modification system has been a nightmare,” she said. “Short sales are a nightmare and the lenders are so tight and you have to be so perfect, and it’s not a perfect world.”

While President Obama acknowledged that there are significant challenges, he said the bottom has been reached and there’s nowhere to go but up. However, it could take this year and next before home values start to appreciate.

Because the market is slow to recover, home prices are not going to bounce back overnight, and they may never be as high as they were before the crisis. That’s where real estate auctions can be an advantage for sellers. The final price holds, and because it is an open, transparent bidding environment, the bidders create the market value of the property, which often exceeds traditional real estate. Homes are still selling at auction, and if you’re looking to put a high-value home on the market, that could be the best news.

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