From Sunday’s Chicago Tribune article about foreclosure sales:
These sorts of foreclosure auctions have created a win-lose proposition in communities, though. A home buyer gets a steal on a nice home that otherwise would have sat vacant. But in return, neighbors see their own property values erode.
No, no no. The neighbors property values have already declined by the time the auction takes place. The auction just lets everyone know by how much. The house in question for the article is going to be offered for $460,000. If RDG (the auction buyer) can get more —ie “within the values of the community” I’m sure they will raise the price. But I suspect “the values of the community” are delusional.