Buy a House at an auction – It is possible that you may have heard or read about stories of people purchasing their dream house at an auction. It is even possible that these stories are so enticing because the houses have all been perfect with almost no visible flaw. Now, you’re seriously having some deep thoughts and considering the possibility of purchasing your choice home probably from your savings, investment, loan or inheritance.
If this surely sounds like you, then permit me to give you an honest and fair introduction and analysis of buying a house at an auction.
Firstly, buying a house at an auction is interesting, it is also possible that you may eventually get your dream house at half the price. A home can end up in the auction via foreclosure and this occurs when a homeowner who is a mortgagor defaults in the repayment of the loan. The home is foreclosed by the lender which is usually a bank and the homeowner is forced out for the home to be sold at auction.
Now that you have an idea of how houses appear in the Nigerian auction, it is important to know that real estate auctions are usually found on various real estate listing websites or local government’s websites. The usual practice is that a refundable deposit of about 10% of the selling price of the house will have to be deposited with the auctioneers to register interest in the bidding process. If the bid is lost, the 10% is refunded but where it is won, the remaining amount of the final bid amount will have to be paid with the exclusion of the earlier 10% made.
One of the benefits of buying a house at the auction is the possibility of winning it an incredible low price as the buyers determine the purchase price. It saves time which ordinarily would not have been possible in the traditional system of purchasing real estate. This may be due to the fact that the level of inspection and accessibility provided in the traditional setting is missing in a home auction. It is also due to the elimination of long negotiation periods. The opening and closing time for finalizing the house purchase is known. Another advantage is the equal level of competition as the buyers know that there is no unfairness or injustice on any of the buyers. The buyer’s knowledge and firm assurance that the seller is committed to sell is also a good thing for the buyer.
For Auction related issues or how to buy a house at an auction, you can contact us at Lansar Aghaji & Co.