EAGLESTAR.NET LAND AND PROPERTY REVIEW
http://www.eaglestar.net
Issue #41
November 3, 2008

IN THIS ISSUE:
Properties of the Week: CA, CO, FL, KY, TN
Real Estate Roundup: Auction FAQ's
- Part 2, Auction Theory
Sponsor's Corner: MT River Land
Buyers List Update
Top 10 Searches
Auction News: KS, MO, OK, TX, VA
LandTerms.com Term of the Week: Subdivision

"Hoc erat in votis: modus agri non ita magnus,
Hortus ubi et tecto vicinus iugis aquae fons
Et paulum silvae super his foret."

This was one of my prayers: for a parcel of land not so very large,
Which should have a garden and a spring of ever-flowing water near the house,
And a bit of woodland as well as these.
-from Liber Secundis, Satire VI (c. 29 B.C.)

-Horace (Quintus Horatius Flaccus) [Roman poet, b. 65 B.C. - d. 8 B.C.]


PROPERTIES OF THE WEEK
4,500 Acres of Timber Ready to Harvest
Humboldt County, California
10 million board-feet of Douglas-fir ready for harvest. Two management areas:
Devils Canyon = 3,480+/- acres, approximately 15.5 million board-feet standing
Douglas-fir. Approximately 3.5 million board-feet ready to harvest. Mosquito
Creek = 1,032+/- acres, approximately 6.5 million board-feet standing
Douglas-fir. Approximately 1.8 million board-feet ready to harvest. Listing ID:
18053. More information is available at http://www.eaglestar.net/ekt8-.html.

93 Acres Sangre de Cristo Mountain Land
Westcliffe, Custer County, Colorado
This beautiful 93+/- acre parcel in the foothills of the Sangre de Cristo
Mountains has gorgeous views, two creeks, and numerous private building sites.
Enjoy abundant wildlife, stands of pine, aspen groves, and alpine meadows.
This property, which includes valuable water rights, is in Meadow Cliffe Filing
1, just a few short miles from the town of Westcliffe. Easy access via county
roads. Listing ID: 18698. View photos and additional information at
http://www.eaglestar.net/wsmn4-.html.

30 Acres with Home Overlooking Douglas Lake
Newport, Cocke County, Tennessee
Approximately 3000 square foot home with 30+/- acres overlooking Douglas Lake.
Within close proximity to 2 interstates, I-81 and I-40. Near major cities such
as Morristown, Newport and Knoxville. Asheville, NC is only 1 hour away. The 4
bedroom home has an oversized master bedroom with large master bath with lake
and mountain views. Land can be subdivided and developed. City water and sewer
is available. Listing ID: 20319. Find photos and more details at
http://www.eaglestar.net/fmr20-.html.

Lakefront Lot in Coastal Florida Golf Community
Palm Coast, Flagler County, Florida
One of only 340 home sites in The Conservatory at Hammock Beach, an exclusive
gated community featuring a recently completed Tom Watson-designed championship
golf course. The lot overlooks a lake, near to the golf course but screened
from it and away from the clubhouse. The rear of the property is a south-west
facing sun-trap and the depth of the lot leaves plenty of room for a pool.
Membership of The Conservatory includes playing privileges on the Jack
Nicklaus-designed Ocean Hammock course and the Fred Couples-designed The
Gardens course currently under construction. Listing ID: 18833. Photos, maps,
and more at http://www.eaglestar.net/gee.html.

95 Acres Subdividable Farm Land with Home
Columbia, Adair County, Kentucky
This 95+/- acres offers a private country setting, with portions of the
property fronting on two creeks and two branches, and other portions offering
elevated hilltop views. Improvements include a very neat and clean 3 bedroom,
1 bath home, an 18 ft. x 34 ft. concrete block milk parlor, and an 89 ft. x 60
ft. combination stock/tobacco barn and spring watering tank. The farm is
partially fenced and has previously been used for cattle and hay operations. It
is mostly cleared but does have some nice wooded areas. Listing ID: 20575.
Photos and contact information can be found at
http://www.eaglestar.net/whtm.html.


REAL ESTATE ROUNDUP: AUCTION FAQ's Part 2
Last issue we presented some of the more common questions about auctions
(http://www.eaglestar.net/newsletter/index.cgi?ID=40). Part 2 of our list of
Frequently Asked Questions about auctions is all about auction theory.

It used to be that there was one kind of auction - you showed up in person,
placed your bids in open competition with other bidders, and took the item or
property deed home with you if you won. This type of auction, called an open
outcry English auction, is still the most widely-used auction format. However,
other types of auctions are rapidly becoming quite common, especially on the
ever-expanding internet. For example, thousands of companies and government
agencies now use the reverse or clock auction processes to procure necessary
goods, services, and raw materials, and more are joining them every day. The
primary reason for this is the tremendous cost savings that can be realized by
utilizing auctions as opposed to traditional methods of supply.

The field of auction theory has grown in importance as auctions have become a
preferred method of marketing products. As the number and types of available
auctions proliferate, a working knowledge of auction theory has become
necessary for many businesses and industries, and for consumers as well. We
present this guide to the basics of auction theory in an effort to help our
readers sort through some of its often confusing concepts and gain a better
understanding of the nature of each auction type.

Q: What is auction theory?
A: Auction theory is an applied branch of game theory devoted to the study and
design of auctions, with particular emphasis on predicting the actions and
behavior of the auction participants. At its core, auction theory seeks to
explain the nature and properties of auction markets.

Q: How does the field of auction theory apply to the sale of real estate or
other commodities at an auction?
A: There are many different types of auctions. Auction designers use principles
of auction theory to tailor the way a particular auction works to the needs and
desires of the seller(s). Auction marketers combine demographic information
with elements of auction theory to decide what type of action and which set of
auction rules will best suit the needs of their clients. The most commonly
used auction type, which includes most public real estate auctions, is the open
outcry English auction.

Q: What is an open outcry English auction and how does it work?
A: An English auction is a dynamic, single-item auction sale with open and
competitive bidding that utilizes an iterative bidding process where the price
moves continually in a direction that is unfavorable to the bidders. The most
common type of English auction is the open outcry auction, where the auctioneer
places items on the auction block and bidders make verbal offers. Bids increase
in increments determined by the auctioneer. However, a reverse auction may also
be an English auction if it follows an iterative process where sellers' bids
decrease in set increments.

Q: What is meant by the term dynamic auction?
A: In auction theory, a dynamic auction is an auction sale that allows for
multiple bids by an individual bidder, either continuously or in separate,
distinct rounds of bidding. The bidding may be either continuous, as in a clock
auction, or it may occur in distinct rounds, as in a multiple-round auction or
iterative auction. Dynamic auctions are the most popular and widely-used
auction format in the world; the most common type of dynamic auction is the
English auction.

Q: What is an iterative bidding process or iterative auction?
A: 'Iterative bidding process' is a phrase used in the field of auction theory
which simply means that the price of an item moves incrementally up or down in
subsequent rounds of bidding, depending on the type of auction. An 'iterative
auction' is a term used in auction theory that refers to an auction sale that
allows for multiple bids by an individual bidder, in separate and distinct
rounds of bidding. Although both use an iterative bidding process, English
auctions and Dutch auctions are only considered iterative auctions if they are
conducted in discrete rounds.

Q: What is a Dutch auction?
A: A Dutch auction, which takes its name from the type of auction used to sell
tulips in the Netherlands, is an iterative auction format in which the
auctioneer starts the bidding at an artificially high price, with each
successive bid one increment lower than the last. The first bidder wins the
auction, paying the last announced price at the time of the bid. A Dutch
auction is also known as a descending clock auction or open descending price
auction.

'Dutch auction' also refers to an auction format for selling multiple identical
items, based on a 'clearing price'. The auctioneer or issuer of the securities
begins at a high initial price, lowering the price incrementally until bids are
received and the clearing price is established. Bidders may sometimes submit
demand curves rather than a single bid. In this case, each bidder wins the
quantity of the item demanded at the clearing price, and paying that amount for
each item won. This type of auction is commonly used in the trading of
securities, especially U.S. Treasury Department notes and inflation-indexed
securities. When used in this sense, Dutch auction is synonymous with uniform
price auction.

Q: What is a clearing price?
A: The price at which a bidder buys or sells an item. In Dutch auctions where
multiple identical items are offered for sale, a clearing price is established
based on the number of each item available and the bidder's demand curves. A
clearing price is also sometimes known as the auction price or auction value.

Q: What is a demand curve?
A: A demand curve is used by bidders at some types of Dutch auctions where
multiple identical items are being offered for sale. The demand curve is a
graphical depiction of the number of units of a particular item a bidder wishes
to purchase plotted against the per-unit price he or she is willing to pay for
a specific number of the items. Each bidder then pays the clearing price for
each item won in the auction according to his or her demand curve.

For example, Mary submits a demand curve that indicates she wishes to purchase
100 Treasury notes (T-notes) at a price of $95 per note, 50 notes at $97 each,
but only 10 T-notes if the eventual clearing price is $99 each. At a clearing
price of $95, Mary will purchase 100 notes for a total of $9,500. If the
clearing price is $97, Mary will pay $4,850 for 50 T-notes. At a clearing
price of $99, Mary will buy 10 notes for a total of $990. A downward sloping
curve connects the three prices, each of which corresponds to a particular
number of notes demanded. Say the clearing price is $96. Mary would then be
obligated to purchase between 50 and 100 T-notes. The actual number would be
determined by Mary's demand curve, which would be much more detailed than this
example allows and would indicate the number of T-notes demanded for every
possible clearing price between $95 and $97. Similarly, a clearing price of
$98 would mean that Mary would purchase between 10 and 50 T-notes.

Q: What is a clock auction?
A: A clock auction is any auction where the auctioneer calls prices and bidders
name the quantity they wish to purchase. Dutch auctions are therefore clock
auctions, while English auctions are not. In auction theory, a clock auction
is a dynamic auction in which multiple identical items are placed on the
auction block and the auctioneer calls prices at set increments. Bidders place
offers on the quantity of goods desired at a given price. This process
continues until no more items remain or there are no more bids (referred to as
"clearing the market"). Although rounds of bidding may be timed in a clock
auction as in any auction, the term clock auction is a misnomer, having really
nothing to do with clocks or time.

Q: What is a reverse auction?
A: A reverse auction is an auction format in which sellers compete, rather than
buyers. A buyer describes his or her needs, and sellers offer progressively
lower bids for those goods or services until a point is reached where no seller
is willing to place a lower bid. This is the auction price that the buyer
pays. Due mainly to the ease of communication and speed of transactions
offered by the internet, many companies and government agencies have started
using reverse auctions to procure necessary goods and services, especially for
bulk goods and raw materials. One example is the U.S. electric power industry,
which depends on reverse clock auctions to distribute power from suppliers to
utilities. In this sense, the reverse auction is also a clock auction because
the auctioneer names prices and the seller-bidders name the quantities offered
at each price.

Q: Are there other kinds of auctions in addition to those mentioned here?
A: Yes, there are many other types. We will address some of them in future
issues of the Land and Property Review.


SPONSOR'S CORNER
The Land and Property Review would like to thank this week's sponsor:

Smith River, Montana Fishing, Recreation, and Home Site
Eden, Cascade County, Montana
Multiple building sites on 40+/- acres with 500+/- feet of river frontage.
Power and phone to edge of property, paved road provides convenient access.
Fish for brown trout, brook trout, and whitefish. Hunt for deer, antelope,
pheasants, and waterfowl. Hike, enjoy rafting, and much more. Will build to
suit. Can be subdivided. Also available: 5+/- acres with 1,000 feet of Smith
River frontage and a non-buildable 6+/- acre, heavily treed hunting parcel with
1,000 feet of river frontage. Listing ID: 17906. Photos and additional
information at http://www.eaglestar.net/boh.html.


BUYERS LIST UPDATE
Find the properties you are looking for by placing unlimited free buyer's ads
on Eaglestar.net. This service is intended for serious inquiries only. It's
fast, easy, and best of all, free. Navigate to
http://www.eaglestar.net/pages/buyers.html to begin.

Wanted: Land in western Oregon within 2 hours of Portland. 3-15+ acres. Would
prefer water and sewer or septic. House or no house. Please email with
description, price and terms.
Please refer to Listing ID #21472.

Looking in: southeastern Michigan. Michigan vacant land that I can put a
double-wide mobile home on. Please refer to buyer #21353.

Looking in: Tennessee. Large home and 80-acre farm wanted. Please refer to
buyer #21347.

Wanted: 40 - 320 acres wooded Kansas land. Farm house and outbuildings
preferred. Fenced areas / corrals also preferred. Good hunting habitat. Please
refer to buyer #21259.

Looking in: Central VA: Appomattox VA, Farmville, VA, Lynchburg, VA, Amhest,
VA, Rice, VA, Halifax VA. Wanted: Land for sale in Central Virginia, all size
parcels, with ponds, lakes, creeks, pastureland, and timberland. Please refer
to buyer #21253.

Looking in: Upper NY State. 300 acres more or less land for ski resort 2.5 - 3
hours from NY Metro area. Will consider existing ski resort operating or non
operating. Please refer to buyer #21218.

Wanted: Three bedroom small home on acre of land in Ohio. Please refer to buyer
#21143.

Wanted: Large acreage in/near Riley or Pottawatomie counties in Kansas with or
without house. All mineral/water rights transferable. Send details with price
to e-mail listed. Please refer to buyer #21133.

Looking in: Owasso area, Oklahoma. Seeking 1+ acre in Owasso area. May
consider more land depending on price. Licensed Realtor in Oklahoma. Please
refer to buyer #21094.


LAST WEEK'S TOP 10
The top 10 search words and phrases on EagleStar.net for the week of 10/26 -
11/1.
1. Kentucky
2. New Mexico
3. Oregon
4. Historic
5. Michigan
6. Land
7. New York
8. Michigan
9. Tennessee
10. Alaska


AUCTION NEWS
Browse thumbnail photos and short property descriptions at
http://www.eaglestar.net/Land_Auction_Calendar/index.html.

34 Acres with Rustic Log Cabin
Thursday, November 13, 2008
Argyle, Denton County, Texas
34+/- acres with log cabin and detached 2-car garage with apartment in a
country setting within 30 miles of Ft. Worth and Dallas. Location is east of
Hwy 35W in Denton, TX in the desirable Argyle School District. Property has
wildlife and is partially wooded, with Brush Creek running through, two ponds,
pasture and native grasses. Rock landscaping including outdoor fireplace, well
house, patio, bathtub, sprinkler system, and rock/concrete pond. Listing ID:
21265. Photo and additional information at http://www.eaglestar.net/ww4.html.

Home and 28 Acres in 3 Parcels
Friday, November 14, 2008
Afton, Ottawa County, Oklahoma
Home and 28+/- acres in 3 parcels, 2 miles north of Sail Boat Bridge, Grove,
OK. Rural setting conveniently located near Grove, a town that maintains
small-town traditions and good solid values while being the largest city on
Grand Lake. Opportunity to purchase property with excellent Hwy 59 frontage
offering commercial possibilities. Parcels have native grasses, mature trees,
pasture and rolling terrain.
Parcel 1: 5+/- acres. Includes 3BR, 2BA, 2,174+/- square foot wood siding home
built in 1960. Home has wall furnace, window air conditioner, well, septic and
storm cellar.
Parcel 2: 14+/- acres.
Parcel 3: 9+/- acres.
Listing ID: 21264. More information and a photo can be found at
http://www.eaglestar.net./ww6.html.

Land Auction, 290 Acres in 10 Tracts
Friday, November 14, 2008
Springfield, Greene County, Missouri
These parcels are part of the former Underwood Farms and have been held by the
same family for generations. The 290+/- acres is being offered in 10 tracts,
which may be assembled by a purchaser of multiple parcels. Parcels have
excellent road frontage, including Parcel 10 with Hwy 60 frontage. Located
within Springfield growth corridor, but convenient to Rogersville. Property
features a mix of grasses, pastures, rolling terrain, woods and several ponds.
Parcels range in size from 10+/- acres to 50+/- acres. Listing ID: 21430.
Photos and details are available at http://www.eaglestar.net/ww7.html.

Land Auction, 76 Acres in 3 Tracts
Friday, November 14, 2008
Springfield, Greene County, Missouri
76+/- acres in a prime location east of Springfield, MO with excellent
potential for investment, development, ranchettes or residential estates.
Growing area with convenient access to both Springfield and Rogersville.
Parcels range in size from 10+/- acres to 40+/- acres and are located within
minutes of the conveniences of Springfield or Rogersville. All parcels have
access via county road. Listing ID: 21431. Photos and more information can be
found at http://www.eaglestar.net/ww1.html.

Commercial Property and Residence For Sale
Friday, November 14, 2008
Chetopa, Labette County, Kansas
Three commercial buildings (formerly Barr Lumber, Hardware and Antiques) and
residence for sale in Chetopa, KS near Oklahoma/Missouri state lines. Some
equipment and inventory will also be sold. This property is located on 8 city
lots along busy Highway 50/166. Commercial buildings are 1 metal and 2 frame
structure; residence is 3 bedroom, 1 bath, 1,370+/-0 square feet with a 2-car
garage. Three commercial buildings and residence on 8 city lots along busy Hwy
50/166. Listing ID: 21432. Photos and additional information are at
http://www.eaglestar.net/ww2.html.

63 Acres Investment, Development, or Residence
Friday, November 14, 2008
Rogersville, Webster County, Missouri
63+/- acres in Rogersville, MO, just west and south of Sawyer Creek
Subdivision. Opportunity to purchase land for personal residence, residential
development or investment. Excellent infill investment opportunity. Property is
located in City of Rogersville (approximately 10 miles east of Springfield).
Surrounded by established neighborhoods, property is mostly pasture with
rolling terrain, some trees and pond. Listing ID: 21437. Find photos and more
at http://www.eaglestar.net/ww5.html.

Allen Farm, 43 Acres in 4 Parcels
Tuesday, November 18, 2008
Keswick, Albermarle County, Virginia
A magnificent country estate set against the Blue Ridge and Shenandoah mountain
ranges, these 4 parcels totaling 43.3+/- acres feature world-class equestrian
facilities and four bedroom ranch-style homes with spectacular mountain views.
Parcels range in size from 5+/- acres to 20+/- acres. Listing ID: 21434.
Photos and additional information are available at

http://www.eaglestar.net/Detailed/21434.html.


LANDTERMS.COM TERM OF THE WEEK
http://landterms.com
Each issue we feature a real estate, forestry, natural sciences or other
land-related term from our partner site, LandTerms.com.

This week's term: Subdivision
1. The process of buying undeveloped land, dividing it into smaller, usable
lots, and selling the lots to potential users or investors.
2. Land that has been divided by the owner (subdivider) into individual parcels
or lots which have been grouped into blocks. These lots, together with streets,
alleys, parks, schools, planned commercial areas, and public utility easements,
are recorded on a plat. Subdivision is subject to local and state regulations,
and in most areas a lengthy application process and filing fee is required.


SUGGESTIONS
We welcome reader suggestions, comments, and questions.
Email: newsletter@eaglestar.net

ARCHIVES
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