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General / Winning Bids
« on: November 22, 2008, 04:50:01 PM »
I subscribe to ontariotaxsales.ca and receive winning bid information for their 'featured' properties. Why are people bidding more than assessment value on tax sale properties during a downturn in the realestate market?
I'm very cautious, you know, once bitten, twice shy sort of thing, though I've made mistakes, lost $50,000 in mutual funds before putting everything in bonds and won't buy again till the market show some sort of improvement (this was money toward my retirement so there is still time to recover, hopefully in a year or two).
For example, the property 'close to' Lake Bernard (walking distance to lake but not on lake) was assessed at $7,100 and the winning bid was $7,200. Property in Greater Napanee, vacant lot, near a lake and zoned as shoreline but not on lake, assessed at $9,800 and highest bid $15563.13. The other properties that there were bids on in July, August and September went for less than half of assessed value, which is what I expect. Are these people crazy? They see a small vacant property near but not on a lake and (greater Napanee??) and overbid?
I remember a few years ago (when market was good) seeing properties that were going for 20 to 30% of assessed value, except for those very close to Toronto or large urban centre or in excellent shape. Now there are crazy people bidding, or they know something that we don't know.
I'm very cautious, you know, once bitten, twice shy sort of thing, though I've made mistakes, lost $50,000 in mutual funds before putting everything in bonds and won't buy again till the market show some sort of improvement (this was money toward my retirement so there is still time to recover, hopefully in a year or two).
For example, the property 'close to' Lake Bernard (walking distance to lake but not on lake) was assessed at $7,100 and the winning bid was $7,200. Property in Greater Napanee, vacant lot, near a lake and zoned as shoreline but not on lake, assessed at $9,800 and highest bid $15563.13. The other properties that there were bids on in July, August and September went for less than half of assessed value, which is what I expect. Are these people crazy? They see a small vacant property near but not on a lake and (greater Napanee??) and overbid?
I remember a few years ago (when market was good) seeing properties that were going for 20 to 30% of assessed value, except for those very close to Toronto or large urban centre or in excellent shape. Now there are crazy people bidding, or they know something that we don't know.