In recent years, more and more people are choosing to buy through auction as they can acquire the desired property at prices lower than those of the market in the desired area.
Advantages of Buying Real Estate by Auction
- If you know how the process works, you can get the property you want at a price 10-20% lower than the purchase price
- The process is usually completed faster than the typical property acquisition process.
- The costs of the lawyer-responsible person who undertakes the procedure (mediator-broker) are usually less than the standard procedure.
- Additionally the engineer is not involved at all which further speeds up the completion of the process.
- Total transparency – process impartiality since you conduct online through an algorithm and the highest bidder will always be the one who gives the highest bid at the last second.
Disadvantages of Buying Property at Auction
- If you don’t know how the process works, you can get away from the offer price and give more money when you could give less.
- If you are addicted to competitions – gambling may not be the right way to acquire the desired property as you may escape the process without wanting to.
- The main disadvantage of the process is that you cannot see the auctioned properties from the inside, only from the outside of the building. In addition to the offer price, you know the exact address, floor, square footage, rooms that the apartment has.
- For your participation to be successful, you must pay 30% of the bid price at least three days before the competition. In case you are not the winner of the competition, the money is immediately returned back to your account.
To be sure that it is worth participating in an auction and that you will not get away with excessive bids that are not needed, we recommend choosing us for the right guidance throughout the process.
Tip 1: Before participating in the competition, we recommend that you visit the property to see it up close from the outside.
Tip 2: We suggest that you do a market survey or consult an expert who knows the market prices to determine if the offer price is worth buying. Usually, however, the prices are below the market prices of the desired area.
Tip 3: As you do not have the possibility to see the interior of the apartment – real estate, calculate that you will almost certainly need an extra amount to allocate for the renovation of the auction property – apartment.
Tip 4: Before participating in the competition, we suggest that you set a limit, in other words, what will be the maximum amount you are willing to give for the auction property – apartment and not to exceed it! See all properties on auction by clicking here