Updated about 7 years ago on . Most recent reply
Setting Auction Bid Price: Be greedy or take the easy win?
Wondering how people treat this scenario:
- Good looking asset and well maintained exterior
- Appreciating area (+$3k-$5k per month in zillow value)
- Currently owner-occupied, owner has been 100% unresponsive through FC
Potential Profits:
Scenario 1: Interior in good condition for area, but still needs some minor work: $25k profit
Scenario 2: Interior updated and no real work needed (have been told by a realtor who was in the property in 2012 that it was updated and 'very nice' (granite, etc.): $45k profit
Scenario 3: Interior needs a lot of work / other issues come up: $10k profit
Where would you tie your auction profits? I am struggleing accepting a $10k profit at auction, when, I think there is a ~50% of scenario #2.
I think that in this business, when you find a quality asset, you should get everything you can (because there will be many you really hope sell at auction).
Most Popular Reply
I agree with Chad Urbshott
I want out as fast as possible. I just had a property that the lender had interior pics from a year ago that the house was in good condition and a realtor BPO of $80k. Well the homeowner decided not to fix a clogged drain and ended up with a swimming pool In his basement. Value now $30k. Insurance doesn’t cover stupidity unfortunately
Thankfully I got the note on the cheap and didn’t lose my shirt but it’s like hitting on 14 in blackjack - sometimes you win and sometimes you lose
Why not hire someone to deliver a pizza to the house and take a quick peek at the inside for you ?
- Chris Seveney
