10/18/2026
THE HIDDEN RISKS BEHIND A BEAUTIFUL PROPERTY — PART 5
THE NUMBERS THAT CAN DESTROY YOUR PROFIT
A property may look like a profitable investment on paper. But have you calculated how much you could realistically earn after selling it?
HIDDEN TIP #5: KNOW YOUR NUMBERS BEFORE YOU BID.
1️⃣ Estimate the Realistic Resale Value
Research recent sales of comparable properties in the same area. Consider the property's condition, location, and current market conditions. Don't base your investment on an overly optimistic resale price.
2️⃣ Account for Holding and Selling Costs
Owning a property can involve ongoing expenses, such as maintenance, utilities, financing interest, and insurance where applicable. Selling may also involve agent commissions, closing fees, and other transaction costs.
3️⃣ Calculate Your Maximum Bid
Start with a realistic expected resale price. Subtract your estimated investment costs and the profit you want to achieve. The remaining amount can help you determine your maximum purchase bid.
SMART INVESTOR TIP
Potential Profit = Expected Resale Price − Total Estimated Investment Costs
Include all applicable expenses and allow for unexpected changes. If the numbers don't support your investment goals, be prepared to walk away.
Remember: Winning a property at auction isn't the same as winning a profitable investment. Smart investors know their numbers before they bid.
💬 YOUR TURN
Would you walk away from a property auction if the numbers no longer made financial sense, even if you really wanted the property?
Share your thoughts in the comments!
📌 Follow Tiffany Tyuse, The Tax Sale Expert, for Part 6 of The Hidden Risks Behind a Beautiful Property.