Our loan on a SFR in Spokane is going to auction next week on 8/16 and we are wrestling with a starting bid that will attract buyers. As I understand it, the market in Spokane is pretty active. The borrow's total debt on the home with all arrearages is around $192,000 which of course is beyond the value of the home. The address is 3917 East Frederick, and AVM shows it at $170K in good condition. It will need repairs so we are thinking of opening bids at $110K. Any recommendations are appreciated.
Hi @Bob Malecki , my experience of our market here over the last 5+ years is that auction deals increasingly tend to go for over what is "wise" from an experienced investors' point of view.
• Do you want the house back?
• What amount would you be happy with getting back, regardless of arrearages?
I bet your answer lies somewhere in between.
If ARV is $170,000, and plenty of notice is given for investors to research, the auction should easily send it higher than $110,000. If you let the market "speak" via the auction, you'll get the most you can out of it. Advertise it as best you can in advance.
@David Clinton III thanks for the perspective, so you think the $110 starting bid would generate counterbids? we do not want the house back
I believe it would. A safer bet may be starting closer to $99k. If you really don't want the house back, let the market come to you!