newbie

[kg1213]

After browsing the paper today I found an upcoming tax sale auction.  Noticing a property that was close by I drove by and checked it out and looked around being the place was deserted.  Pretty nice property probably could go for 150k - 180k...  Tax amount owed was about 4500...  Would like to pay a considerably low amount but could pay up to 50-80k.  Do many people go and bid on these or do a lot go unsold? Do they go pretty quick?  Any help and advice would be most appreciated.

Thanks

[Rob]

Do they go quickly? 

No all properties have a set date to submit a bid (generally 30-60 days) so as long as your bid is submitted before that date the bid will be considered.

It really depends on the area.  When I updated this site yesterday, there were a lot of properties in the London (South West Ontario) area.  I expect all of them to have a min. 20 bids per property and for each one to sell for over 100,000.  But some of the other properties in the north will receive no bids and can be achieved for the min. bid + taxes owed.  I'd suggest a good rule of thumb is properties in southern ontario will go for 30% less then the assessed value + taxes owed.  Anything cheaper you have won a good bid anything over and the value of the purchase begins to reduce to a point where a good agent could get you the same deal.

[Frank]

Rob
Your rule of thumb doesn't hold water.  There is no rule of thumb when it comes to tax sales.

By the way, I would stay away from those London properties, unless you are interested in owning potentially contaminated land in an industrial park.

The last bid I attended in northern Ontario I saw a property go for 25% MORE  than its market value (go figure).