How to buy a home during auction

House for auction
House for auction

In a real estate market in crisis it is becoming increasingly common to buy homes through auction proceedings. Until a few years ago auctions were unknown to the general public and reserved for groups of local speculators. With the crisis and the failure of many companies but also with the insolvency of many private houses, court auctions have become one of the few means in the hands of creditors to recover their money. Therefore it was determined a marked increase in the number of parallel rods to drop the auction. If in 2007 before the crisis the discount on a house on auction might amount to 15%, in 2012 it was an average of 45% even if the discount is greater in the South than in the North and in areas of the province it is higher than in the metropolis. However it is always an affair for the buyer.

House Auction

House Auction

How does the auction system work? It starts from the home’s value determined by independent valuers. During the race you can make the first bid. As often happens however, the race goes deserted. The judge then has to lower the value of the base bid price and you switch to a second phase of raises. The system is simple and transparent and again provides great opportunities. However, it is advisable to avoid the do-it-yourself and get help from an expert such as a surveyor or one of the largest real estate companies. For individuals who often do even free of charge while always taking commissions from banks who buy at auction to get back from the receivables.

House for auction

House for auction

Assistance is also important to find deals. In fact the list of homes auctioned appears in newspapers and on the website of the court but the developers also have the database in which the customer can look exactly the type of home they want. The auction house can be visited before launching the offer. In fact, on the site of the court are indicated the address and telephone number of the custodian to make an appointment. Real estate companies also assist the private client in the search for a mortgage. A final advantage of buying a property at auction is that it definitely will not be mortgaged because all legal matters at this stage have already been resolved. Keep in mind though that if the housing unit is occupied and the lease is regular, the tenant may remain even after the sale and do so under the terms of the contract with the previous owner.

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