An enforcement auction takes place when a house is forced to sell, for example because the owner could no longer pay the mortgage. The sale price at auction is usually well below the appraisal value of the property: it is therefore advantageous to buy a house in this way. In practice, it is mainly real estate traders who come to foreclosure auctions, but you can also bid as a private individual. If you want to buy a house in this way, then you have to prepare yourself well. Buying a house at auction: what do you have to take into account?
Buying a house at auction: how does it work?
The foreclosure auction consists of two parts: first of all there is an auction by auction and then there is an auction at exit. The first auction is intended to determine the amount of the bet. At the second auction the auctioneer starts with a higher starting amount than this amount and counts down from this amount until someone calls "my". This is also called demise. The one who calls "my" becomes the buyer of the house. It may be a good idea to take someone who is familiar with the auction process, for example a broker or a notary such as Hudson and Marshall. It all goes very fast during such an auction: before you know it the house passes by.
Arrange funding in advance
It is very important to have the financing in order in advance. When you buy a house at auction, the sale is final. There are no resolutive conditions. Buying a house subject to financing is not possible. With some executions, you have to show proof of sufficient financial means before the start, for example a bank guarantee.
Purchase additional costs house at auction
Buying a house always involves extra costs. When you buy a house at auction, you buy an existing home for which you have to pay transfer tax. In addition, you have to take into account extra costs for refurbishing the building. Furthermore, as a buyer you turn up for auction and notary fees. It is important to know if herds have been laid on the house. These are for the account of the new owner. The notary is obliged to mention the additional costs, either before or during the auction. Always ask for the exact costs.