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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Depends on your definition of "normal"! Posted by Jim V on February 04, 2002 at 5:36 PM In Reply to: Tell me this isn't normal! posted by Dave(CA) on February 04, 2002 at 2:09 PM : I just attended a trustee sale here in Los Angeles and it was quite interesting. I didn't bid, just watched to see what it was all about. I'm thinking of switching from the preforeclosure arena to trustee sales. : There were five bidders and the bidding was lively. The opening bid was $188k and when the dust settled the winning bid was $214k. After the sale I comped the property and figure it is worth $240k (I'm pretty confident in my ability to figure FMV as I've bought and sold before), by my calculations the winner paid 89% of value. Assuming the house is in good condition, the people don't resist moving out, holding costs and selling costs are small and they can find a buyer that will pay full value quickly, I guess the guy could make $10k-$15k. : Is this normal? : - Dave If a property is in good condition, is vacant and there isn't a lot listed for sale in the area, bids will be somewhat higher. If your estimated value is accurate, that bid would certainly seem to be a bit on the high side. 85% is the maximum that might be considered rational, or at least, can be rationalized by the winning bidder. Follow Ups: You're making my decision very easy... Dave(CA) 8:27 PM, 02/04/02 (1) Re: No argument here. Jim V 11:35 AM, 02/05/02 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : I just attended a trustee sale here in Los Angeles and it was quite interesting. I didn't bid, just watched to see what it was all about. I'm thinking of switching from the preforeclosure arena to trustee sales. : : There were five bidders and the bidding was lively. The opening bid was $188k and when the dust settled the winning bid was $214k. After the sale I comped the property and figure it is worth $240k (I'm pretty confident in my ability to figure FMV as I've bought and sold before), by my calculations the winner paid 89% of value. Assuming the house is in good condition, the people don't resist moving out, holding costs and selling costs are small and they can find a buyer that will pay full value quickly, I guess the guy could make $10k-$15k. : : Is this normal? : : - Dave : : If a property is in good condition, is vacant and there isn't a lot listed for sale in the area, bids will be somewhat higher. If your estimated value is accurate, that bid would certainly seem to be a bit on the high side. 85% is the maximum that might be considered rational, or at least, can be rationalized by the winning bidder. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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