I read in the comments section of Ryan Frank’s Blog accusations that the builder is advertising the homes for more than what they were originally listed. In the end it doesn’t matter. If it is true, it is just great marketing. The definition of great marketing is that people know about you, not that they will respect you. Which is where Buena Vista may have some trouble down the road.
I cannot say whether this weekend auction will work or not. Right now we have the lowest interest rates in 2 years according to Chase Bank. That might help but any auction with reserve pricing is not an auction where you will get a steal which is why people will show up. I will give him credit for doing it so close to Christmas when a lot of Buyers are out of the mix but he must also realize that inventory in January historically is significantly higher.
Of course there could be the buzz of the people at the auction. There is a psychology similar to mob mentality. Agents love to get interested people talking good about a house at the same time at an Open House. We don’t want to lose out.
I would love to hear from anyone who goes to get a perspective of someone who is not in the real estate industry. Will your opinion of the builder change because many regard this auction as a marketing ploy and not a great innovation as has been stated?
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