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March 27, 2020. More than 80% of Auction.
com buyers surveyed in April said their
interest in vacant properties had increased or
was the same as it was prior to the pandemic
declaration and the passage of the CARES Act.
Data from the online Auction.com
marketplace shows buyers are acting in
alignment with the sentiments provided in
the April survey. Vacant bank-owned (REO)
properties sold on the Auction.com online
marketplace between April and July had a sales
rate (percentage of those available for auction
that sold) that was 26% higher than the sales
rate for occupied REO properties. e April-
to-July sales rate for vacant REOs was also
16% higher than the sales rate for vacant REOs
in the January-to-March period and 26%
higher than the sales rate for vacant REOs in
the April-to-July period in 2019.
is data demonstrates that demand for
both vacant and occupied REOs is increasing
compared to a year ago, but demand is rising
even faster for vacant REOs than it is for
occupied REOs. All buyers of occupied
foreclosures and REOs on the Auction.com
platform must sign a Community Stabilization
Pledge agreeing to adhere to the national
eviction moratorium.
e stronger demand for vacant distressed
properties is translating into higher price
execution relative to seller reserve. Vacant
REOs sold in the April-to-July period in 2020
were purchased for a winning bid that was
101.8% of the seller reserve while occupied
REOs sold for 99.9% of seller reserve—nearly
2 percentage points lower. Vacant REO price
execution was 1 percentage point higher than
occupied REO price execution in the January-
to-March period but was 1 percentage point
lower in the April-to-July period in 2019.
Daren Blomquist is VP of
Market Economics for
Auction.com. In his role,
Blomquist analyzes and
forecasts complex macro- and
microeconomic data trends
within the marketplace and greater industry to
provide value to both buyers and sellers using the
Auction.com platform. Blomquist's reports and
analysis have been cited by thousands of media
outlets nationwide—including the Wall Street
Journal, the New York Times, USA TODAY,
and on many national network broadcasts,
including CBS, ABC, CNN, CNBC, FOX
Business, and Bloomberg.
More than
80% of
Auction.com
buyers
surveyed in
April said
their interest
in vacant
properties
had increased
or was the
same as it
was prior to
the pandemic
declaration
and the
passage of the
CARES Act.
Feature By: Daren Blomquist
