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Steamboat Springs — Ask Realtors in Steamboat Springs, and they are apt to tell you the relative few buyers in the market right now feel no sense of urgency.

Neither the impending end of the $8,000 federal tax credit for first-time homebuyers, nor the cautionary note that the market may have already hit bottom and is headed back up, seem to build a fire under buyers.

The market has reflected some signs of a revival this fall, but not even the potential to lock in 5 percent interest rates for 30 years has caused buyers to jump in large numbers.

Jim Woods and Jon Peddie, partners in Dry Creek Village residential subdivision in Hayden, are about to test the theory that an auction will create some urgency. On Oct. 18, they'll put 43 lots up for the highest bidder.

The two developers have seen 11 Dry Creek lots close since 2008. But none of those sales took place during the second and third quarters of 2009. Previous sales ranged from $76,900 for a 0.14-acre lot to $84,900 for a 0.21-acre lot, and $95,900 for a 0.28-acre lot.

"What we've seen this summer is a whole lot of nothing," Wood said. "When you look at the low transaction volume we've had, it's very tough to get to real value. An auction is a way to get to true value."

Woods said that in spite of the long recession and the slowdown in sales, his research this week revealed that the least expensive asking price for a single-family building lot in Steamboat is $300,000.

So how low will Woods and Peddie go on auction day? Woods wasn't about to tip his hand but said he and his partner calculate they have $70,000 invested in each of the 54 lots in Phase 1.

His calculation prorates the cost of infrastructure for all 150 lots approved by the town of Hayden for future phases onto the initial 54.

"Who knows if or when we'll get around to building the rest of the lots?" Woods asked. "We're in a position to probably see pretty steep discounts. Maybe I shouldn't say that, but I don't care if everybody knows because that's the position we are in."

Auctioneer Cookie Lockhart said minimum bids have not been set and that she will not determine exactly how she will run the auction until very close to the event. She may even adapt as the auction proceeds, based on the response.

"The fact is we don't know at this point how it will work," Lockhart said. "There are so many variables to an auction, and I never know what is going to happen until it happens. It is like getting ready for a play. I put all the parts together, then without a rehearsal, I hope I can think on my feet quick enough to stay up with the crowd."

Looking for locals

The position the two partners are in, Woods said, does not include running up against a bank note come due.

"We just refinanced with First National Bank of the Rockies, and we are performing," he said. "We know it's tough to sell lots in winter, and we asked ourselves, 'Do we want to sit on this until April?' If we sell 10 lots at auction, that will be fine. If we sell 20, that will be better. If we have to pay this note for 18 months, that's what we'll do."

Woods emphasized that the town of Hayden has accepted the infrastructure at Dry Creek Village. He added that the recent refinance with FNBR resulted in strong appraisals on the lots.

Woods envisions the most likely buyer will be a couple with two children that currently is renting and eager for an opportunity to move into a permanent situation with affordable interest rates and room to grow.

"We're really hoping that locals show up, get a good deal and build some houses," Wood said.

One more thing, Woods said: the Broncos do not play Sunday, Oct. 18. That's the week of the Monday night game at San Diego.