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Kelsey, Other/Just Looking in Mount Juliet, TN

Can you bet on houses?

Asked by Kelsey, Mount Juliet, TN Wed Dec 29, 2010

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I'm sure you could, if both parties were agreed on the bet and signed a contract, I don't see why not! However, sounds like a foolish bet!!
0 votes Thank Flag Link Thu Mar 28, 2013
I don't think so, is this this a misspelling?
0 votes Thank Flag Link Fri Feb 11, 2011
So, Kelsey,,, just what do you mean by "bet"? You've got some interesting answers going,,,which one actually answered your question?
Tina Evans, Broker
Crye-Leike Realtors/Cookeville, TN
0 votes Thank Flag Link Wed Dec 29, 2010
Hi Kelsey, You can make an offer, bid on a house if it's a sheriff's sale, or bid in an auction type sale, you can counter offer or in some cases where a home has multiple offers you can come in with your highest and best offer.
Betting as We know can be done in the stock market, however we think those guys are losing currently.

All the Best
Dave & Lisa
Web Reference: http://www.urhomerealty.net
0 votes Thank Flag Link Wed Dec 29, 2010
If you mean bid on a home, than everytime you offer less than the asking price, you are bidding on that home. Some foreclosures offer a bidding time before the home actually goes to auction, but once again the seller gets to decide what is the price they will accept.

If you are looking for a home and have any more questions, please do not hesitate contacting me and I will try to find out as much as possible to help you with your decision.
0 votes Thank Flag Link Wed Dec 29, 2010
Interesting how all the answers interpreted your question differently. And I had a different take on it myself.

Phil's interpretation--can you have confidence in them (presumably holding their value)--is interesting, but I disagree. Yes, over the long term, real estate in general will go up. But as we've seen over the past few years, short term they can definitely lose value. And it's not just the past few years. Same thing happened in 1990-1991. And sometimes communities change, and property values drop.

Scott's interpretation--that you can bid on them--is absolutely correct. As is Lynn's.

I had a different take on your question: If you expect the value of a property to rise OR FALL, can you make an investment that will result in a profit? And the answer is yes--though I wouldn't use the word "bet" since that implies a gamble. You can certainly profit from a rise with no risk. And you can minimize your risks during price declines. Suppose you think a property will rise in value. You can buy it. With 20% down, you have 5-1 leverage. Example: A $100,000 house. You put $20,000 down. The house goes up in value by 10%--to $110,000. You've just made $10,000--or 50%--on your $20,000 "bet." You can improve your odds by going with FHA financing at 3.5% down. In our example, you'd put $3,500 down and receive a $10,000 payoff. That's a 286% return.

Boost your return even more. Don't buy the property. Just option it. Either a pure option or a lease-option. An option also limits your downside risk. If you bought the house with 20% down and it falls in value to $90,000, you've just lost $10,000. Option it, instead for--say--$2,000. Then your maximum exposure is $2,000.

Actually making money on declining values is more difficult. You can play around in Wall Street. There's a great book called The Big Short that explains how some of the big boys did it . . . and how many failed at it . . . and how that helped lead to the real estate collapse. See http://www.amazon.com/Big-Short-Inside-Doomsday-Machine/dp/0… Another way is to go for cash flow and forget the value of the property itself. I know investors who are perfectly happy to buy properties they never expect to go up in value. They don't even mind if values drop. The properties are cash flowing nicely, and will likely remain profitable regardless of what happens to real estate values.

Hope that helps.
0 votes Thank Flag Link Wed Dec 29, 2010
Don Tepper, Real Estate Pro in Burke, VA
If by "bet" you mean "count on" or "have confidence in" I would say that in most cases it's a safe bet.
Web Reference: http://www.321property.com
0 votes Thank Flag Link Wed Dec 29, 2010
You can not bet on them but sure can bid on them. if you want to come back on and add some more information, we would be glad to try and help.

If you are interested in bank owne dhomes, please see my blog filled with tips and advice on how to buy bank owned homes.
0 votes Thank Flag Link Wed Dec 29, 2010
Did you mean bid on homes? Yes you can at an auction if you show proof of funding.

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
0 votes Thank Flag Link Wed Dec 29, 2010
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