Have you ever wondered how the Estimated Percent Gain of a property is calculated in Monsoon? Once a property is in foreclosure and the opening bid has been set for the auction, the field for Estimated Percent Gain changes from being empty to being highlighted in green. In the example below, that value is 132.12%. But percent of what?
Estimated Percent Gain is the potential profit secured at auction if an individual were to win the auction for $1 more than the Opening Bid, as calculated by this formula:
((Estimated Value – Opening Bid)/Opening Bid)*100
For our example, if someone were to win the auction for $37,051 (that is, $1 more than the Opening Bid), that individual would stand to gain 132.12% of the amount paid ($37,051) were they to sell the property for the Estimated Value ($86,000).”
Remember, the accuracy of values such as Estimated Percent Gain is determined by much more than the simple math outlined here. An essential factor to consider is the condition of the property, since Estimated Percent Gain does not include repair costs.
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