Category: Auctions

Block by block

23 May, 2014 (10:40) | Auctions, Bankruptcy, Cities, Detroit, Homeownership, Housing, Markets, Municipal bankruptcy, Theory, Urban homesteading, US News |

 By: David A. Smith For all the pixels burned crying panic at the possibility of Detroit filing bankruptcy, for all the specious unfounded blather that municipal bankruptcy was illegal, couldn’t possibly do good and would instead do incalculable harm, so far everything that has happened since Detroit filed has been good … but practical progress sells […]

The ratchet games: Part 3, How many times?

9 May, 2014 (09:00) | Auctions, Brokers, Escalation clause, Homeownership, Innovations, Markets, Principal-agent risk, Realtors, Sales, US News |

[Continued from yesterday’s Part 2 and the preceding part 1.] By: David A. Smith By now it’s evident that the escalation clause in a home-purchase offer, described by Jay Fitzgerald in a good piece for the Boston Globe (April 13, 2014), is at best a double-edged sword for sellers and buyers, opening a new subgame […]

The ratchet games: Part 2, Promising to top?

8 May, 2014 (09:00) | Auctions, Brokers, Escalation clause, Homeownership, Innovations, Markets, Principal-agent risk, Realtors, Sales, US News |

[Continued from yesterday’s Part 1.] By: David A. Smith Yesterday Part 1 used a Boston Globe (April 13, 2014) article by Jay Fitzgerald to report on an innovation by eager home buyers to gain an advantage over other home buyers: the escalation clause, where a bidder proposes being given a ‘last-best-topper’ right to top any […]

The ratchet games: Part 1, An escalating edge?

7 May, 2014 (09:00) | Auctions, Brokers, Escalation clause, Homeownership, Innovations, Markets, Principal-agent risk, Realtors, Sales |

By: David A. Smith Though markets are places where eventually the trade shows the truth about what people value, the pre-sale maneuvering is a game without rules, where anything goes – so there is no one right way to sell an item, and no one right way to buy it, and when the balance of […]

Goosing the observant herd: Part 2, the auction buyers

26 July, 2011 (10:00) | Auctions, Foreclosure, Homeownership, Innovations, Markets, Speculation, Subprime, US News |

By:David A. Smith   [Continued from yesterday’s Part 1.]    Yesterday we saw, via an oddly disengaged New York Times article, that real estate auctions place both seller and buyer in positions of uncertainty, which heightens the interest for both parties:   Auctions are not necessarily deals for buyers, either. Most apartments appearing in auctions […]