For the folks who regularly buy at courthouse auction - how have prices changed in last 6-12 months in your market?
Attended a sale today in which a property that I was sure would have sold for less than $75k ended up going for $88k. I haven't been to a ton of these...so I'm not sure if this was an outlier or the norm.
Just curious what others are seeing in their markets right now!
Reminds me of the old Yogi Berra quote "Nobody goes there anymore. It's too crowded."
People bid up junk on the low end and institution blind bid on much of everything else worth considering under $200K. We packed up our toys and left the sandbox a while ago. Waiting for the rains to come and drive off the people.
I would agree.
In Chicago the auctions are going for prices to similar to what's already on the MLS
But at the auction you only get the note.
When your cabbie is flipping homes time to take a step back.
Good quote from Chris regarding Yogi Berra. It's been a crowded trade so a lot of the regular folks have left the steps. People have been making more money buying and flipping short sales than buying at the steps in my market. To put things in perspective, properties were trading for a 20% premium between Jan and April 2012. That was how fast our market was moving. In a rising tide, people were able to buy high and sell higher. The margin has been getting compressed in the recent years that it was no longer worth the risk. For this reason, some have moved onto doing addition and new construction.
The beauty about being at the steps on a regular basis is that you can see what's coming down the pipe. Thus, you can go back and grab all the pending short sales where prices have been lagging for months. By the time you close, you already have a ton of equity. Being able to buy at a discount gives all kinds of option. Either cash-out refinance to get all of your down payment out of the deal and more in some cases, and keep the property as a rental, or flip for a significant profit. You just have to figure out a strategy that works best for your situation and implement it.
Best of luck.
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