Now That The Auction Is Over... Help Me Evaluate...
I went to a foreclosure auction today. There were only 5 people there, including myself. The other 4 were older (late 40's early 50's) gentlemen who all seemed to know each other really well. I was surprised by the lack of formality.
Anyway - property 1 was a nice brick rancher with 5 bedrooms, a kitchen, a dining room, a living room, a den, 3 bath, 1 half bath, and a garage. 2353 sq feet, plus a 1515 sq feet sub level, and a 930 sq feet garage. Grand total of 5000 sq feet. 
Hardwood floors, central heat/air, all kitchen appliances, and a fenced in in-ground pool.
Seller wanted 145,000. Last tax appraisal was 118,600, in 1995.
Only 1 mortgage - $14,853 to Citifinancial.
I was not going to buy at this auction since it was my first time, and nobody else seemed interested in buying. I actually visited the home and it looks really really nice.
Anyway - it went to a loan company for $106,165.
I get the sneaking suspicion that this was a fantastic deal that I missed out on. :(
What do you pros think?
Former appraisals mean very l ittle. THe most important thing is what is current market value? IF you did you due dilligence then you would compare the prices that all the other similar houses in the same neighborhood sold for and that would give you your current real market value. Then you would subtract the cost of the house and you would know whether is was a good deal or not..
There is always the possibility that the other gentlemen had been talking with the owners in preforeclosure and had been in the house. It may be trashed or have structural defects. Or maybe not...I'd get in the house and see with your own very eyes.
The seller must have been very stubborn on what he/she wanted, with a mortgage balance like that, a nice deal could have been made if the property was in decent shape.
Bryan
The place had already been vacated when I went by there last week. There were no blinds in the window so you could just see in. They hadn't destroyed the place like some folk do.
tax appraisals are notoriusly over-valued. I wouldn't worry about it.
Mark
Quote:
On 2004-04-01 10:16, commercialking wrote:
tax appraisals are notoriusly over-valued. I wouldn't worry about it.
Mark
What? Overvalued, not true mine are under about 5%-10%. You really have to know the area and search out the comps per sq ft and do a valuation of the structures components. I can't believe an idiot would default on 15k for a 120k+ house, what fools just sell the damn thing. Oh well I guess it keeps people in biz.
If you still want it then run, don't walk, to the bank and make a deal before they list it with a Realtor. Banker might say "we sell all our proporties via Realtors." If you have the means, reply "What if..." and say whatever you think might get their attention (e.g., "What if I offered you $5000 more than the auction price"
. If you don't have the means, see if they'll lend you $$ on it. Make sure you get to have a good look at it, though. If there's a redemption period, you have to factor that in though.
This is the start of your learning process. Let this one go. I've found out that "chance of a life time deals" come just about once a month-maybe sooner.
These other people in attendance who may (or may not ) be seasoned pirates didn't offer a bid. What's wrong with that pictures??? They knew something you don't know. Attend, watch, listen, and learn before you leap.