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Auction of flats or buy from banks? We compare advantages and disadvantages

The auctions of flats can be an option to find a property for a price lower than the real market value, but also the purchase of flats of banks is.

So, to analyze both options, we will choose to list the advantages and disadvantages that we will obtain with each option.

It will be necessary a good knowledge of the real estate market and a firm and constant attitude with the search, since the good options fly and, either in an auction or in a negotiation with the bank for the purchase of a flat, we will have to be attentive to not lose our chance.
The auctions of flats: An option beyond the reach of many, and that involves some risks

The excess of auctioned floors and prices, which tend to exceed those of the current market, have discouraged bidders, even professionals. It is very difficult to find an auction that is worthwhile.

At auctions it is advisable to go hand in hand with an intermediation company, a lawyer or an auctioneer in the area to act as a guide.

To find out about the auctioned houses there are several options. There are portals that collect and expose for free the house auctions that will be held in our country. Although it is convenient to go directly to the courts, although the publication of the auctions in the official bulletins is not mandatory.

To participate in a bid you must have a solvent bank account. To start, you have to pay 20% of the money – it is returned that same day if you do not win. And if the house is awarded, the rest must be paid in less than 20 days. But before getting excited about the possibility of buying, you have to visit the house.

After the auction, it is necessary to go to the Property Registry where we will have to check if the property has previous charges, since in case of having; the winner of the auction must take charge of them.
The purchase of bank flats: A more viable option to find the house of your dreams in better conditions

On the other hand with the purchase of flats of banks the buyer saves the procedures of registration of the title and eviction of the owner and can visit the house before. You could say that with this option it is more feasible to find a bargain. At least it seems much less risky.

In addition, unlike what usually happens with houses that auction at times, the floors of banks are usually not all old houses, in poor condition or anything like that. For starters, you have a very large range of flats that you can buy from banks; in fact some banks have more houses than some real estate, which allows many families not only to get a home, but also to find a home made to measure.

With the purchase of flats from banks you can obtain greater financing facilities that in many cases reach 100%, while in the usual transactions of flats does not usually exceed 80%.

You will find more opportunities to get houses with discounts, since many floors of banks have been acquired after an auction, and by law they are obliged to offer them at a price at least equal to the bargain they have obtained.

In addition, banks nowadays have many houses in their stock and they have to give it out soon, with what you have more chances of finding a bank that is also interested in selling, and will have more facilities on your part.

As we can see, buying homes from banks from bank repossessions or deserted auctions seems a bit safer than floor auctions. This option includes higher requirements and may be more risky.

Australian Times

For, by and about Aussies in the UK.

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