If you like to invest in foreclosures, we’ve got some great news!
We are now revealing the estimated credit bid early on select properties. The estimated credit bid is the minimum amount bidders must exceed to win the property. If bidding at the sale doesn’t reach the credit bid, the lender takes ownership of the property.
The estimated credit bid is usually revealed one day before the foreclosure auction, often leaving very little time for investors to complete their due diligence. But thanks to strong relationships with our lenders, we’re now able to reveal the estimated credit bid much earlier.
Benefits of Knowing the Credit Bid
So, what does this mean for you? Having the estimated credit bid weeks in advance can benefit investors in many ways.
Selecting Budget-Friendly Properties
Auction.com offers thousands of foreclosure properties nationwide. With so many options, it’s important to know which properties fall within your budget. Because the estimated credit bid is the amount you’ll have to bid above to win the property, knowing this crucial information will help you narrow down the properties within your budget.
Calculating for Profit
You can use the estimated credit bid to help calculate your potential return on investment (ROI) from flipping a property. Simply subtract the estimated credit bid from the estimated resale value and you can see roughly how much you can make before repairs. Then add in your estimated repairs and you should be able to determine if the property fits your budget.
More Time to Research Liens & Property Condition
Having an estimated credit bid in advance also gives you more time to do research. Time to review due diligence documents on the property page, research comparable sales and resale values and run a title search to see if there are any liens on the property.
In addition to the legal work, getting the estimated credit bid weeks ahead of time gives you time to drive by the property and around the neighborhood. Foreclosures are usually occupied by tenants or homeowners so you’re not allowed to trespass on the property. But you can check the exterior to see if it needs to be painted or if any repairs are necessary, such as replacing cracked windows.
Expand Your Investment Portfolio
Properties with early estimated credit bids are good options for first-time investors and seasoned pros.
For buyers looking to purchase foreclosures for the first time, knowing the estimated credit bid early gives them more time to research and figure out which properties fit their budget.
These are also great properties for savvy investors looking to diversify their portfolios because these properties offer more pricing data insights to support their robust investment strategies.
How to Get the Credit Bid Early
Be sure to create an account so you can save interested properties to your dashboard. We will notify you if the estimated credit bid is revealed or if there are any changes to the amount.
You may also want to download the Auction.com app to save properties and check which properties are postponed, canceled or cleared for sale.
Get an edge by knowing the bid to beat. Find properties with estimated credit bids and prepare to win.
