When it comes to buying a property, you can either get it fresh off the market or acquire it at an auction. The latter might involve a few risks, but it is a popular way of acquiring properties for buyers.
Sellers auction their properties by setting a minimum price, which is the starting point for bidding. Buyers bid in competition with each other to buy a property which goes to the highest bidder at the end of the bidding session. As a seller, if you want Top dollar for your property, the auction could be a great idea.
Coming back to the main topic, we have some things to share about buying an auctioned property. If you are planning to engage in a bidding war soon, you might find this information helpful.
- Check the Legal Status
Once you find a property you like, make sure to check the legal documents. This is especially important because banks don’t handle legal issues for auctioned properties. Therefore, it’s best to hire a lawyer to review the papers so, you can avoid future legal problems.
- Arrange Your Finances
Before participating in a property auction, make sure that have enough money ready to purchase the property. You are required to deposit at least 25% of the bid amount within a day after the auction. In case, you don’t have enough cash, you can consider applying for a home loan.
- Check the Property
Since you are spending so much money on a property, checking it in person is a must. You should schedule a visit to inspect the property in person. Make sure there are no bank notices on the doors related to the property. You must check everything else about the property before making a purchase.
- Get the Sale Certificate
After paying the full amount, you must secure the sale certificate from the bank. This document proves that you have cleared the payment to the seller. After that, you can get the property registered at the registrar’s office to make it legally yours.
Buying a property at an auction is a unique experience. Before you join such an event, make sure you are prepared, both financially and mentally.