Bracebridge Results

[mozzy]

Just curious for any comments on the Bracebridge results, the wood lake waterfront lot looks like a steal at $62,857 vs the swamp in Kawartha's for $122,200, would also like to know if the 70 acres of vacant land that went for $80,000 was worth that on a tax sale.

[dd143]

I checked on the property and also spoke to someone at the sale.   The river is spectacular but it would seem that 80,000 is pretty much market value.  The forest is protected and so not much could be done (except enjoying it), the lot by the river would be expensive to get a road up and in.   Apparently there are lots for sale just down the road for 100,000 already with entrance already in place.  80,000 was over my budget.

[Dave2]

Just curious for any comments on the Bracebridge results, the wood lake waterfront lot looks like a steal at $62,857 vs the swamp in Kawartha's for $122,200, would also like to know if the 70 acres of vacant land that went for $80,000 was worth that on a tax sale.

Guys and Ladies:

I think we are way over reacting to a single bid on a single property in Kawarthas.  The next bid was a quarter of the price.

What we are seeing now is just a continuation of trends since the beginning of the year.   Lack of property offered for sale in the general real estate market and as a result people are buying tax sale property TOO aggressively.  

If you are buying for your own account sometimes these prices can be justified but rarely given the VERY REAL risks.  Maybe the market is going up to these prices but I doubt it for the long term.  

As a smarter person then me once advised about tax sales "If something goes up for tax sale, you have to remember there is a problem either with the property or the owner."  

Even if you win one that may not be the end of your challenges.   My big achievement last week was finally getting the deed for a property I won a year ago.  ONE YEAR TO GET THE DEED.  

It also cost me a lot of legal costs.  About 3 TIMES THE NORMAL LEGAL COST TO CLOSE A REAL ESTATE SALE with a very knowledgeable lawyer (45 years experience in real estate) who treats me fairly in price.  If I let the town lawyer do it I wasn't going to get it the way I wanted it.  

These are the issues that you never hear about in this business and obviously not talked about by the people selling tax sales.  

I will do okay in the end because I built in enough margin to cover extra costs.    With hindsight we could all do well in tax sales but it will not happen.   Its like poker," You have to know when to hold them and when to fold them".   Even then we get surprises and you have to remember to watch your back.  (See photo) How you handle things next will determine if you will or will not be successful in this business.

Remember this when your boss who pays the bills asks the all important question," Are we making any money?"

[mountainman]

I am Mountainman

While the losers all weep

from the winner there isn't a peep,

do you know why?

because it was a good buy,

so while others may find the price steep

a nice reward the winner should reap.

For I am Mountainman

[dd143]

Hey mountainman,
I love the poetry but would also like to know why who are so content with results.   I  think it is tremendously beautiful down Sherwood Forest Lane but someone more experienced than I thought the price to be close to market.