Today, unlike years past, the market for home furnishings, overstuffed furniture, appliances, kitchenware, etc. and those items out of the ‘70s, 80’s and ‘90’s are of little or no value.

With the majority of items now made and imported from China and sold through Walmart at “everyday low prices” coupled with the ability to shop for new home furnishings with no down payment and no interest for 2 years, it is no wonder that the buying public opts to purchase their new furniture from the big furniture stores and have it delivered!

I realize that our sellers often have a sentimental attachment to that favorite chair or dining table that Grandma or Mother especially liked, but our buyers do not share that same memory. It is simply an older dated piece of furniture that they would have to purchase, load and haul home.

Added to this problem is the high cost of gas. It is no wonder that we are experiencing a change in the buying practices of our auction attendees. On the other hand, buyers don’t hesitate to purchase that unique figurine or small decorative item that they do have room for at home.

Where will all this end or will the market ever return? In my opinion, not in the near future.

Unlike years past when we experienced a surge in investment buyers, a majority of our buyers are now farmer/operators. With historically high commodity prices, attractive interest rates, and some available cash for purchasing, land prices are at historical highs. Remember though, an election year, high fuel (imput) costs, the near certain change in capital gains taxes, and adjustments in 1031’s all play into the market and longevity of this strong market.

In my opinion there is no better way to market land than the auction process. In today’s market it is difficult to calculate what a potential buyer is willing and able to pay for a particular piece of property. The auction process will establish the “fair market value” when all interested parties are in attendance and competitively bidding against one another in a public auction setting.

With all the gloom and doom in the media with regards to the housing market, there is still a demand for investment property, acreages and homes in the medium price range. We have had good success in marketing these types of homes at auction. The market becomes challenging in the area of new construction and higher end homes. Financing becoming more difficult to obtain, coupled with the downturn in the market with regards to new construction. The auction process requires motivated sellers willing to accept “Fair market value” a sluggish market with limited buyers and a lot of property to choose from. It is truly a buyer’s market today.