Foreclosure/Auction Valuations

While foreclosure/auction rehab valuations can feel a bit different because you’re working with less information, higher risk, and stricter terms, you may want to approach the analysis in much the same way as any other deal — with a few adjustments. Some users choose to build in contingencies, use more conservative ARVs, and include extra costs (taxes, liens, fees, etc.) in their numbers.

A couple of tips inside the software:

• For closing costs, you can itemize by selecting Detailed Input under #2 Closing Costs. This allows you to enter specific expenses often tied to foreclosure/auction rehabs — such as back taxes, liens and legal fees, or auction fees. (See the screenshot below for a visual reference. All line items can be customized to fit your project.)

• For line #5 "Rehab Budget", you can include a contingency line to cover unknowns, especially when you have limited or no interior access to the property beforehand.

• If you’re making an all-cash offer, you can account for this by selecting “All Cash” for line #7.