Why are these properties sold at an auction? In most cases, auction property is sold because the homeowner is unable to settle the loan repayment. The homeowner’s bank loaner sells the property at a minimum bid in an auction. When buying these types of properties at an auction, the bidder is unable to view the property hence research must be conducted.
Guide When Bidding On a Property in an Auction
Firstly, it is important to check whether the property is a good investment and always check the reserve price of the property at the auction. Moreover, reserve price allows a bidder to set a budget and also compare prices with other properties in the auction.
When it comes to buying an auction property, one must also check the neighbourhood and its surroundings. Similar to buying cheaper properties with Elelong such as close to public transport, supermarkets, retail shops, hawker centre and many more.
For auction property, do take note checking the neighbourhood priorities is whether the place been destroyed by mother nature such as earthquake, landslide, or chemical erosion. Moreover, if the neighbourhood has many abandoned building it is best to avoid from buying the property.
Consider Buying Below Market Value Property
The reason why some homeowner is willing to let go of property below the market value is the need for fast cash or the property had been put for sale for years without any buyer. Therefore, the reason to buy below market value property is able to get a good deal. This is very beneficial for a first-time homebuyer or investment purposes. That being said when one is able to buy this type of property, it is a great return of investment.
However, the flaws of below market value property are the property needs an extensive amount of repairs which could be very costly such as changing internal piping or wiring. Some of the property could look new on the outside but the internal could be damaged. Therefore, checking on the walls, testing the pipes, checking on the floor are really important when one purchase this kind of property.
The good thing is that one is able to enjoy a buy cheap, sell expensive when buying the property hence the flip price gives a good return on investment. Moreover, it requires a lesser loan agreement hence it is very affordable which may do the better renovation.
How to Buy Lelong Property in Malaysia
Lelong property is basically properties that are sold in an auction. The tips for buying such property are to do a substantial amount of research. Researching on the property developer is very important because the build of the house is reliable and has a better investment. Some developers might go bankrupt hence it could lead to a messy investment which many shall avoid buying or bidding the Malaysia lelong property site.
When bidding, a bidder shall register with the auctioneer upon arrival. The things that are needed is the identification card, bank draft, and money to top up in case to pay the difference of reserve price. When targeted on a property, it is important to set a limit and do not go further where it could lead to stress. When a bidder, has already won the bid at lelong property he or she will sign a contract and pay the deposit within 120 days.