Guidelines for property auctions
All kinds of properties are listed and sold in property auctions but what attracts maximum bidders are house property and real estate. The kinds of house/real estate properties that are predominantly reclaimed properties. Auctions are held at periodical intervals throughout the year, and the auctioneers provide extensive advertising and publicity to bring attract as many potential buyers as possible. The striking feature of property auctions is the properties that are listed can be bought at below market value and for this reason there is a lot of clamor for buying at the property auction. Apart from the facility of buying at cheap rates, the auction procedure is far less time-consuming than the traditional methods of buying as there are no protracted negotiations.
There is an open bidding and once you are the highest bidder and the gavel falls, you immediately make a deposit of around 10 percent of the bid amount, sign the contract and seal the transaction. You are given a further period of 28 days to make full payment and complete the purchase formality. As bulk of the properties sold at a property auctions are reclaimed properties, the bank or the lending agency are also happy and relieved when the properties are speedily disposed off and cash realized. After all, the lending institutions are not in the business of buying/selling real estate and their sole objective is to collect the loan arrears.
If you are selling property at an auction, it is your prerogative to set a minimum figure as the reserve price for your property in consultation with the auctioneer. As a seller, you can thus have the peace of mind of fully aware that you can simply withdraw your property if the bidding amount does not reach the amount set by you. Of course, the reserve price is not announced or disclosed to the intending bidders and as such you can always expect a much better price than you had set The auctioneers usually arrange viewings/inspection of the properties that are listed, and they may also provide prospective bidders a quality color catalogue, giving details of your property and highlighting its key features. If you are a buyer of property at an auction, then you will be welladvised to inspect the property before bidding as in many cases, the property may be in need of renovation. Page 4
In fact, you should bear in mind the cost of repairs while bidding as otherwise you will end up paying a much higher price. There is no denying that the activity of bidding on auction floor can be a daunting task and if you are nervous or emotional, it is better you ask an experienced bidder to accompany you. It is even suggested that you should attend a few property auctions as an observer and familiarize yourself with the auction procedures before attempting to bid in property auctions. In general, auction has so many dealings and official procedures both for the seller as well as for the buyers and it is essential to know all law of the state and federal government with regard to property auction. Furthermore, for both buyers and sellers, it will be worthwhile to enlist the services of a legal representative. As a buyer, you have to be forewarned of any problems regarding the property such as land charges, planning restrictions, future developments etc.
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