Chapter 1428 Taking Down The First House (2/2)

In property auctions, the final transaction price was very predictable. The range that people would bid was determined by the estimated value of the house. Generally, if the value of the house was less than 100,000, the maximum bid would be 50,000. Bidding any higher would be too risky.

If the value of the house was less than 200,000, then the highest bid would be 60 percent of the estimated value. At 500,000, the highest bid would be at 70 percent. When it came to one million, the highest bid would be about 80 percent of the estimated value.

If the value of the house were any higher, there would not be any other applicable guidelines. People would only be able to make a quotation based on their own experience and luck. A house with a value of more than one million dollars could lead to a big loss for the buyer, and those who dared to bid for such a house were generally well-off.

At 50,000 dollars, the enthusiasm of the bidders started to dwindle.

Someone started to analyze, ”If it's 50,000 dollars… the annual rent is about 7,000 to 8,000. The rate of return would be 15 percent. But there would be property tax of 2,000 to be paid, the garden maintenance fee is at least 500, the housing insurance and maintenance costs will add up to another thousand… Okay, let's risk it, 51,000 dollars!”

”55,000 dollars!” Another house-picker bid.

The auctioneer pointed at him and said, ”55,000 dollars, gentlemen! Is there someone willing to bid higher, for example, 56,000 dollars?”

Li Du rubbed his chin. ”60,000 dollars!”

Hearing that, some of the house-pickers started to shake their heads.

”D*mn, that amount is a little risky!”

”A lousy house like this is worth at most 50,000 dollars, any higher and he would lose out!”

”Where did that man come from? Since when is there a Chinese among our crowd in Santa Monica?”

”He's a treasure hunter, he is from Arizona.”

”Ha, he's quite daring in bidding. So he's a newbie? Let him take it then.”

The market value of this house was 100,000, and at a listing of 90,000 dollars, the house could be sold off fast. However, the house-pickers were not willing to bid too high because they did not know if the water pipes, electrical circuit and wall paneling of the house were in good condition.

Li Du did not have that concern. He had used the little bug to take a look. The house had been quite well maintained and all the pipes and circuits were working. To buy the house at that price would guarantee him steady profits.

The auctioneer pointed at him and began to confirm the bid, ”60,000 dollars once, is there a higher bid? 60,000 dollars twice, if there's no one else – buddy, you won the bid at 60,000 dollars!”

Li Du grinned and nodded. He raised the number tag he was holding onto and showed it to the auction official. The rest of the procedure would be to transfer the property and there would be an intermediary to assist him.

The second house was now put up for auction. It was a bungalow in the urban area. The house was very new. It was only ten years old and belonged to the category of newly built houses. The price of such a house was relatively high. The market price of a house like that, though it was only 140 square meters, was about 300,000 dollars.

Li Du did not bid for the house. There were squatters who lived in it, and they had children. It would be very difficult to obtain an eviction order and get them out of the house.

Others were also aware of that information. They had inquired about the house in advance. The final price of the transaction was one 120,000 dollars. If the people living inside could be successfully evicted, there was a very high potential profit to be made. However, it would be tough.

Li Du looked at the house-picker who took the house. Li Du estimated that the house would be useless to the man. The man who lived there illegally was a lawyer, and he must have found a way to stay in the house. Find authorized novels in Webnovel，faster updates, better experience，Please click for visiting.