With buyers scarce and prices in Florida's condo market plunging, sellers are increasingly turning to auctions to move units in new developments. No longer just a means of unloading foreclosed homes, the auctions also keep agents from having to guess what the public is willing to shell out, the New York Times reports. “In this market, it’s not easy to determine value,” says one auction exec.
“It’s a win for the developer because he moves a lot of inventory quickly,” he adds. And it allows buyers to snap up bargains, while the competition reinforces the idea that such purchases are a good idea. But auctions won't solve everything: they only work if buyers are willing to bid beyond the minimum price.