Tax Sale Guide Home
First Time Bidding
Chapter: BIDDING
EDSABIA
I am new to this site and to placing bids...there is a tender coming at the end of this month and I will be placing a bid.
It is a house that has been closed for the past 10 years. Owners died and the city took over as there were no family around.
The minimun tender is 35000 and I don't know if there is a way to find out how many bids are for the house or any related information. I have no idea how high the bids go on tenders. The house might be for demolition as it has been closed for 10 years now...we can't see anything inside.
I would really appreciate if anyone can give some feedback
Netpred
You have asked some really good questions and raised some excellent points. Your post really hits the nail on the head regarding the risks associated with tax sales. You are always taking a chance. Do as much homework as you can and make sure that your bid reflects the risk. There is usually a reason when properties, especially houses, go to tax sale - they are often not much better than tear downs. You cannot see inside the house unless you trespass or break in (criminal offence). So don't bid stupid. You will never lose if you do not win a tender but you can sure take a bath if you overbid. Case in point is Quinte West. I did a drive by and decided to bid. I was trying to figure out how high to go and my range was 30 - 55k. I read here that it was a piece of crap so I took a second and closer look which resulted in me not bidding at all - the place was not worth the minimum given the clean up and rebuild that would be required. I would have taken a bath at 55k and still have been to high at 30k. I would have lost in the long run had I won that tender. So, there is no one answer, just do your homework, use common sense, bid conservatively and never ever speak to the neighbours.
Good luck on yours and let us know what happens.
EDSABIA
thanks for your advice. Actually I was going to go and talk to the neighbors about the old owners.
I was thinking on bidding a bit high so I can make sure I am the highest bidder...it seems I need to rethink what I will do.
I was thinking on a bid of at least 150K. ... what do you think?? or anyone else. As i mentioned the lowest bid is 35k which cover the taxes of the house for the past 10 years.
I really don't know where to start...I am nervous about it.
pjdd
My guess it will probably get reedemed, so I would not think to much about it. One of the hardest things about this is that you set your eyes on something you get excited, you do the research and at the last minute it gets canceled. It is a hard game to play but hopefully everyone learns and is successful. Good Luck
Asindero
First to think about if there's an existing building is evironmental cleaning cost. (ie: oil spill)
Don't go too much from minimum bid. If it's for you, you win.
Asking neighbors is not a bad thing to do. I did it in Coe Hill. Land sizes were too small against by-law. Nothing can be built. There was also a 99 acre in the list. I tried to find it two times. First with a car then I returned with a 4x4 and I was sure only a helicopter can get in. The bid price was $5k and the lone bidder paid $68k. She must be pulling her hair.
After few weeks, I won 2 properties near Chandos Lake. They are much bigger and wooded with private road.
Merlin777
My opinion is to get market appraisal done for the street (any RE agent will do it and may email it to you). I think the median price for the area is between $280 hardly $300. Did you look at the houses for sale on the street? I think they are "sitting" for over 30 days and they are in move-in condition and less money?! Why would you have the hassle & the work if you can get it cheaper?! I agree with the other posts, if its to be yours, you'll get it with $50K... then spent the extra $100 - $150 and you'll have it for $200K that's A good deal!? but don't go over board on the first one...its just not worth it and you may get stuck with it.