Buying properties has always been a crucial task. Involving a huge risk. With anything you purchase, comes along are the pros and cons of everything you buy. There are alternative ways to buy properties rather than opting for traditional options or channels which includes involving a mediator, searching for properties through site visits, etc. As we’ve pushed ourselves to raise the bar and move digital, properties can be conveniently purchased through Online Auctions.
Why consider purchasing properties at Auction?
Purchasing at auction can bring you an array of doubts,
here’s why you can always consider auction as a choice-
·
It's Quick and Convenient
While traditional methods to
purchase properties involve a lot of work and your valuable time, purchasing
through auctions is faster and convenient. You can quickly complete the entire
process from auction to completing just in a few weeks. by paying 10% of the
total amount (purchase amount of property) you can make your bid. The amount
acts as a deposit for submitting your bid. In general, the bid amount is
returned or refunded if you haven’t been selected as the winning party. In case
if you got the property in the auction, the amount is adjusted with the total
balance amount. Commercial real estate
auctions are quite popular amongst the audience today as they have a higher
rate of returns in the later phase.
·
Transparency
Unlike traditional approaches
where the broker/dealer can actually sometimes fool you by not telling the
right price, auctions have clear visibility of prices and the information on
the other bidders who’re willing to purchase the same property. While in an
auction, you can get hold of the exact prices, fluctuation, and the bidders who
are participating, this creates complete transparency and convenience to bid
and analyze others' bids too!
·
Varied Choices
There may be a variety of auctions
near you, not just the CRE
Auctions for commercials but residential auction too, you can have a
diverse choice. don’t believe if anyone says auction properties are only the
NPAs and the ones having disputes around or even the mismanaged construction
ones! Make sure you get a copy of the auction house’s catalog so that you can
take your time to research and find the best property for yourself. In this way,
you can even have your research work completed earliest possible or before the
auction in order to bid on the right suited property as per your taste and
budget.
Holdbacks of purchasing properties at Auction
Everything which has a positive side involves a few negative
aspects too! Here’s why you should always consider the pitfalls of choosing
auction as your option to purchase.
·
Money
It is obvious that purchasing
requires money but, you must have at least 10% of the payable amount of the
property you’re purchasing ready on the day of the auction. In case you’re the
highest bidder and the would-be owner, you have to deposit 10% of the total
balance amount (apart from the bid amount already paid if any). It might seem
tough to carry a sum of money, which might affect the decision of choosing
auction as the medium to purchase properties.
·
Budget Issues
In any other case, you can have a
fixed budget and buy your property in the same, when it comes to auctions, bids
can go higher and you must have a space to increase the budget if it's
required. People keep bidding and the cost of the property rises all along! If
you’re passionate then stick to the rising prices, if not, the auction is not
worth your time!
·
Involves Deep Research
As it is said “All the glitters is
not gold”, what you’re watching might have a history, some legal restrictions,
or even disputes. You might have no idea what you’re putting yourself in!
Always have deep research included so that you get to the deepest and check if
everything is alright! Thus, impulse buys, if you’re initiating isn’t really a
good idea. Search, explore, and finalize if everything is falling in place.
There is an equal balance between the advantages and the
drawbacks of purchasing properties through auction. Consider the one more
suited for you!
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