FIRST TIME BIDDER

[EDSABIA]

Hi to Everyone,
I am new to this site and to placing bids...there is a tender coming at the end of this month and I will be placing a bid.
It is a house that has been closed for the past 10 years.  Owners died and the city took over as there were no family around.  
The minimun tender is 35000 and I don't know if there is a way to find out how many bids are for the house or any related information.  I have no idea how high the bids go on tenders.  The house might be for demolition as it has been closed for 10 years now...we can't see anything inside.
I would really appreciate if anyone can give some feedback.....

thanks for your help.

[netpred]

Hello and welcome.

You have asked some really good questions and raised some excellent points. Your post really hits the nail on the head regarding the risks associated with tax sales. You are always taking a chance. Do as much homework as you can and make sure that your bid reflects the risk. There is usually a reason when properties, especially houses, go to tax sale - they are often not much better than tear downs. You cannot see inside the house unless you trespass or break in (criminal offence). So don't bid stupid. You will never lose if you do not win a tender but you can sure take a bath if you overbid.
Good luck on yours and let us know what happens.

[EDSABIA]

thanks for your advice. Actually I was going to go and talk to the neighbors about the old owners. 
I was thinking on bidding a bit high so I can make sure I am the highest bidder...it seems I need to rethink what I will do.
I was thinking on a bid of at least 150K.  ...  what do you think?? or anyone else.  As i mentioned the lowest bid is 35k which cover the taxes of the house for the past 10 years.

I really don't know where to start...I am nervous about it.

[Jayz]

My guess it's the one in M city. Well, it's in GTA, sort of. So it doesn't matter how shity the house is, there'll be lots of bidders, and your $150k likely won't be good enough. But who knows, that's only my opinion. Detached house in that general area is $300k plus. If there's no major foundation issue, estimate $100k for all fix-ups, $150k to win is still a good win. Talking to neighbors will draw more people bidding against you - not necessarily those neighbors but also their friends, relatives, acquaintances etc..

[pjdd]

My guess it will probably get reedemed, so I would not think to much about it. One of the hardest things about this is that you set your eyes on something you get excited, you do the research and at the last minute it gets canceled. It is a hard game to play but hopefully everyone learns and is successful.  Good Luck

[EDSABIA]

yes it will be a good deal if I get the house for 150 y spend 150k fixing it...but my real concern is if the house goes for demolition....

I asked a few people that are in the business and they say to expect always the worst...and because it has been 10yrs. locked nobody knows how the inside is now......

if that is the case....I don't know if 150k is a low bid......anyone with recommendations?  should I go higher on the bid.....

thanks

[PG]

I suspect the house you are looking at is the one that is boarded up and completely overgroan with vegetation.

I walked around it and my concern was that it looked like there was smoke soot at the top of the broken front window. I know that the house had been broken in and vandalized, but my biggest fear was that the slight smoke damage on the outside could be very extensive inside and require that the place be either demolished or completely gutted.

I guess it is always a gamble to buy such a place and one would expect the purchase price to reflect that.

[EDSABIA]

yes, that would be the house...
I had a few experts look into the property and the outside....they both think is too risky to offer much for it.  It seems they believe the house will be ready for demolition and building a new one...will be really expensive.

I am not sure what to do now....I still have a few days to think about it..but I am doubting to go ahead with an offer.
What do you think about it?  are you interested in bidding?  I asked the city and it seems there are quite a number of people interested more than 15 people had picked up the packages.....

[Asindero]

First to think about if there's an existing building is evironmental cleaning cost. (ie: oil spill)
Don't go too much from minimum bid. If it's for you, you win.

Asking neighbors is not a bad thing to do. I did it in Coe Hill. Land sizes were too small against by-law. Nothing can be built. There was also a 99 acre in the list. I tried to find it two times. First with a car then I returned with a 4x4 and I was sure only a helicopter can get in. The bid price was $5k and the lone bidder paid $68k. She must be pulling her hair.

After few weeks, I won 2 properties near Chandos Lake. They are much bigger and wooded with private road.

[Dave2]

1.  There are several different situations but in general along with the risks are
     also the rewards:

a) Occupied which means some interesting legal issues and do you have the mean streak to kick out little old grannies  (I don't)

b) Empty urban which you also have the mold and other issues mentioned.

c) Empty vacation which because most are designed to be left vacant for long
    periods you maybe okay as long as it has not been exposed to the weather.

d) Finally there are the mystery buildings that you find out after the purchase
   you didn't know you had; that you picked up with the land you wanted to
   purchase.  (The following is a true storey and resulted from a discussion
   with rural town staff over correct GST values.)
   (Friendly town official (they do exist):  The valuation       probably results from     the existing cottage.  
(Surprised Wining bidder;) What Cottage?

    I am in the final stretches of rebuilding it  now and both the
    gamble and the investment may work out.    If it does maybe sweet
   except for the arguments with my wife.  

    She thinks final value is much higher then our then I do.  Of course that does    not      include the cost of the beers for Frank   which I understand may get expensive.
      

[Pfm1011]

The wife will always think property is worth more then it is  and old cars are worth less then they really are.. Never let your wife buy property alone or sell your cars or your toys alone.

[Dave2]

Never let your wife buy property alone or sell your cars or your toys alone.

PFM1011:

You mean your significant other tried to sell your boat.   Must be all those (No doubt shapely) accessories she is worried about.   

On a more serious note the buying and rebuilding of existing tax sale structures is an art not a science in which I wish I was more skilled like you and Frank. The other problem is that it takes a lot of time and is very hard to budget until you open it up.

The best evidence I have of the time it takes is how quiet the board has been because I know that some members were successful last year and this year they are tied up in implementation, especially as if you wish to avoid HST you needed to get the work done before a week from now. 

That is why unfortunately people like Brady may have to drive up to Minden (nice drive however ). 

My significant other does have a point though.  We are really arguing over the value of a 1,200 sq. ft. rebuilt cottage.   Not fancy but functional.  I know what a new one would cost, (Your posts on Napanee last summer provide a good background of the numbers for newbies.) and this one maybe a fraction of the regular cost.

But  the style is dated. It will serve well as a guest cottage and the space for the new one is already identified.  That is the advantage of a lot of land. 
 

[merlin777]

Never let your wife buy property alone or sell your cars or your toys alone.

PFM1011:

You mean your significant other tried to sell your boat.   Must be all those (No doubt shapely) accessories she is worried about.   

On a more serious note the buying and rebuilding of existing tax sale structures is an art not a science in which I wish I was more skilled like you and Frank. The other problem is that it takes a lot of time and is very hard to budget until you open it up.

The best evidence I have of the time it takes is how quiet the board has been because I know that some members were successful last year and this year they are tied up in implementation, especially as if you wish to avoid HST you needed to get the work done before a week from now. 

That is why unfortunately people like Brady may have to drive up to Minden (nice drive however ). 

My significant other does have a point though.  We are really arguing over the value of a 1,200 sq. ft. rebuilt cottage.   Not fancy but functional.  I know what a new one would cost, (Your posts on Napanee last summer provide a good background of the numbers for newbies.) and this one maybe a fraction of the regular cost.

But  the style is dated. It will serve well as a guest cottage and the space for the new one is already identified.  That is the advantage of a lot of land. 
 

[/quote]

My opinion is to get market appraisal done for the street (any RE agent will do it and may email it to you). I think the median price for the area is  between $280 hardly $300. Did you look at the houses for sale on the street? I think they are "sitting" for over 30 days and they are in move-in condition and less money?! Why would you have the hassle & the work if you can get it cheaper?! I agree with the other posts, if its to be yours, you'll get it with $50K... then spent the extra $100 - $150 and you'll have it for $200K that's A good deal!? but don't go over board on the first one...its just not worth it and you may get stuck with it.