Transcript:
Tax Sale Expenses
Hey there, it’s Casey Denman from TaxSaleAcademy.com and welcome to our weekly question segment. This week’s question comes to us from Corey.
Alright, Nate’s question . . .
How do you judge buyer demand? I know you buy and sell a lot of vacant lots, but I’m afraid I can’t get buyers for them.
Great question nate and one I get from time to time.
So obviously, it’s a factor of supply and demand just like everything else in life. More on this in a second, but what I’ll essentially do is review the listings in the area to see what’s actively on the market and what’s selling. Hopefully I’ll have quite a bit of activity in the area I’m investing, with numerous properties having been recently sold and others coming on the market. This gives me a solid idea that there is buyer demand in the area. So that would be step one, especially if you’re selling to a consumer.
If you’re selling to an investor, if you can’t find comparable sold properties or if you have concerns you can often drive up demand for your property by driving down the price. If a property is worth $5,000 but you’re selling it for $3,000 then the demand is going to be much greater for your property than many others, right? And this is what I often do when I sell to investors – I buy cheap, sell cheap and move on while collecting the profits in the meantime. Nothing wrong with NOT getting top dollar for every transaction.
So, in short you need to review the area, do some research, look for trends, especially things like volume and price increases or decreases and then determine if there is room for you to be able to buy and sell a property there. If it’s questionable, then determine at what price you think you can sell something for while driving up the demand due to the price, while still making money. It’s all about research though – eventually you’ll be extremely comfortable judging your buyer demands as you gain the knowledge and experience in that area.
Nate, I hope this answers your question. If you have a follow-up or if anyone watching this video has a question, please feel free to leave it below this video or any of our other videos right here on YouTube.
Thanks so much for watching. And as always, check out TaxSaleAcademy.com to grab a copy of your free book or if you’d like to take advantage of the most detailed and step by step training we offer through The Tax Sale academy. See ya next time!
Can I use Zillow for quick estimates?