Ontario Tax Sale Property Forum
Sheriff Sales / Foreclosures => General Discussion => Topic started by: bobs on July 21, 2010, 07:13:07 PM
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First 35500-
Second 16712-
Third 16665-
As I am the second place bidder I find myself thinking of the practice of selling my bid. What are peoples thoughts on the morality of this? Firstly I would need to contact the 1st place bidder so if you are him maybe you could send me a message and we could discuss.
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You will find different opinions. I tend to agree with PFM that this is not an acceptable practice. However, if you do sell your bid, sell it big so that the high bidder still feels the pain of over-bidding. Personally, however, I would take more pleasure in knowing that the high bidder will be extremely upset by overpaying by more than 16k and will always remember his/her lesson.
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If you sell your bid..you are rewarding this guys overbidding..essentially he is beating you with a bid he know he wont have to pay as the second place "loser" will sell out. If you sell out to this guy this bid..get used to being second to him as it will happen again and again. Make him overpay and learn his lesson.. He isnt your friend..he just kicked your a** in a tender and there is no prize for second.
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there is no friends in this game, business through and through
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First 35500-
Second 16712-
Third 16665-
As I am the second place bidder I find myself thinking of the practice of selling my bid. What are peoples thoughts on the morality of this? Firstly I would need to contact the 1st place bidder so if you are him maybe you could send me a message and we could discuss.
You could always offer to sell him your bid for $16,712 X 2 = $33,412.
You could point out that he would save over $2,000 by accepting your offer. You of course would have an annual rate of return of (52/2) / .20 (because you only have to contribute the deposit) = 13,000 % for your troubles which as an honoured member of this board I think you deserve every penny. I mean with that percentage rate of return I might even change my scruples. ;D
(Belated question is my rate of return too low???? Note not used to calculating such big numbers only little ones.)
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I think people here are being mordant for some reason. There's nothing to gloat about, guys. Yes he/she could have bid less and still won. But does it necessarily mean he/she overpaid? of course not. It may only mean everybody else way underbid. I won a property where I bid over 2nd by large amount. Do I feel bad about it? Yes I do. But I still think the property worth it. After spending a little more to fix it up, I am still getting a nice piece of property way under market value.
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I appreciate that some of you tax sale junkies double bid your tenders. Submitting a second tender at about 70% of your higher tender is mathematically sound but fraught with unanticipated consequences. Properties can, and do get redeemed after the sale - right up to the moment of registration. Purchasing by way of the second high tender adds a couple of weeks to the high risk time period. I once overheard Dave2 at a tender opening mentioning that he would pay extra to expedite the registration process. Purchase by way of a second high tender impacts all of you since many municipalities wait until they have the money for all successful tenders, including the second high bid laggards. Just think how excited you would be if you bought someone's second high tender for a premium and then the owner redeemed before the deed was registered. Hmmm!
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I think people here are being mordant for some reason. There's nothing to gloat about, guys. Yes he/she could have bid less and still won. But does it necessarily mean he/she overpaid? of course not. It may only mean everybody else way underbid. I won a property where I bid over 2nd by large amount. Do I feel bad about it? Yes I do. But I still think the property worth it. After spending a little more to fix it up, I am still getting a nice piece of property way under market value.
Jayz:
My comments were not directed at the value and validity of the bid but a tongue in cheek comment on the issue of buying the second place bid. As commented in the post following yours there are risks to buying the second place bid.
In one case where it was worth my while (I also have bid well above the second place bid) but it was worth it and as you mentioned the key is to get control of the property even if the winning bid was higher than necessary in hindsight.
Its like playing poker. A lot easier if you can see all the hands and the next cards from the deck. I am still looking for the township where I can look at the other bids before I submit mine, haven't found it yet. It would also help if I knew who was going to bid in advance.
Some of the SOB's who have cleaned my clock more often then I would like to admit including from this board are smart in a realistic way unlike poeple who overpay, so getting too greedy with a low price is risky.
I just hope your building turns out as good as mine did. I am finally going to be able to give some attention to those far north acreages and might even take a photo of the Moonbeam flying saucer if I have time for Franke. Maybe he can take a picture of his corvette that he got when he traded swampland for it so we can be jealous how well he mangages his wife.
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"If you sell your bid..you are rewarding this guys overbidding..essentially he is beating you with a bid he know he wont have to pay as the second place "loser" will sell out. If you sell out to this guy this bid..get used to being second to him as it will happen again and again. Make him overpay and learn his lesson.. He isnt your friend..he just kicked your a** in a tender and there is no prize for second."
Exactly, see two years ago Napanee. I wonder how did he do with those two lots, especially after the downtime from last year.