The Deals are at the Auctions! ... You have to be there, or have our bidder be there for you...
Just last week a 3BD/2BA home on Estara Ave near Occidental College in Los Angeles sold for well below market value. The House is worth anywhere from $720,000 to $800,000. The lender was owed over $530,000. So it would be reasonable to assume that he house would have sold for $550,000 or more.
But that is not what happened. We always coach our clients to name a price at auction, because you never do know where the lender will set the opening bid. You want to catch the deal, don't you?
So name your maximum bid price based on what you are willing to spend. Throw out the other numbers. This is YOUR DEAL!
In this case the lender took an already good deal and made it better. They dropped the opening bid to a low $462,052.90 There was bidding because obviously this was going to be a deal no matter what and people were prepared. But the bidding only went to $521,000 before a winner was called. Imagine if you had saved $200k on a house near a college. How easy will that flip or rental be?
Be where you need to be, or let someone else you trust hold your checks. You can still make offers and go after the deals on the front end. But cover your bases, and improve your numbers.