Real Estate Auctions – Not All They’re Cracked Up to Be

One of the many ways by way of which an individual can sell his property is by making use of 부동산경매. The process is similar to any other auction wherein bidders bid for your property and the highest bidder has the right to buy the property. As a seller, you set something known as the reserve price of the property. This represents the lowest amount that the seller is willing to accept for the sale of his property. Apart from physical auctions which have been in existence for a long time, online auctions have been rising in popularity over the last few months.

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There are several reasons as to why properties are available for sale through the auction process and do not go under go the normal sale procedure. Most often foreclosure properties are sold via this mechanism. There are times when an auction is ordered by a court, forced on account of divorce or on account of a broken partnership. The sellers perceive this to be the fastest way of concluding a sale. The buyers usually flock to an auction since the properties sold by an auction process are available at a discount to the prevailing market price. The response to the real estate auctions is usually encouraging because of the perception that it is a chance to get a property cheaper than the market price. The big question however is whether real estate auctions provide good deals for the buyer. The buyers need to understand the process of real estate auctions and be aware of drawbacks associated to real estate auctions

The prospective bidders have to bid for the property without being fully aware of the exact condition of the property and the various shortcomings that come with it. This is so because some defects may not be apparent to the naked eye and because of the limited inspection that is allowed for the auction properties. The auctions are usually held on “As Is Where Is” basis which means that you have to take the possession of the property once you have merged as the highest bidder and it becomes binding for you to pay up and take possession of the property. There is little flexibility as far as the financing option goes for these properties. You have to usually go with the financing arrangement that the seller is providing and hence have to go with the specific lender that the seller has finalized prior to the commencement of the auction process.