What does the dollar amount listed on RealtyTrac mean?
The amount listed on RealtyTrac is usually based on the defaulted lien amount or the transfer value. Called the Balance or Opening Bid on RealtyTrac, the defaulted lien amount is what the foreclosing lender needs to break even. If our data sources don’t provide that amount, then we use the Trans Value, which is the amount paid for the property when it was purchased by the owner in default. This is not the asking price for the property; it’s a starting place for you to begin your negotiations with the seller. The goal is to get a good bargain, but you shouldn’t necessarily expect to buy the property for just the defaulted lien amount. Either the defaulted lien amount or the transfer value gives a good estimate of what is needed to satisfy the lender. If you subtract this amount — and any other liens against the property — from the estimated market value of the property, you will have a good idea of the potential bargain that could be realized with the property. This will also give you
