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If you are considering buying a property in auction, this is the article for you.<\/p>\n\n\n\n
From ready-to-occupy properties to open plots, you get a wide variety of housing units to choose from. But buying a property from an auction is a two-edged sword. While a property auction might be a boon to potential homeowners in some ways, it also has its set of cons. Let\u2019s have a look.<\/p>\n\n\n\n
Auction houses <\/strong>are a win-win for both banks and homebuyers. Here, you can find a sweet deal on a let-out property in a well-connected location for a relatively lucrative price. These properties are priced almost 15-20% cheaper than their original market price.<\/p>\n\n\n\n Next in the benefits of an auctioned property is zero construction project delays. Most properties sold in auctions are usually ready-to-move-in properties. Free of delay and fraud risks, the property is free to use once the deal is closed.<\/p>\n\n\n\n However, before making a purchase, check for outstanding municipal tax and society dues as well. Plan the funding since you\u2019ll pay the balance amount on short notice.<\/p>\n\n\n\n There is always a chance that the properties being auctioned can be located in prime and posh areas. These properties might not be an option for you due to high market rates or unavailability of the land but now fit well within your budget.<\/p>\n\n\n\n Since this is an auction, you can\u2019t anticipate what the highest bid might be. Hence, there\u2019s no assurance that you\u2019ll buy the house for the desired price.<\/p>\n\n\n\n Auctioned properties are sold on an \u201cas-is-where-is\u201d basis. Before you buy, it is essential to check the physical condition of the property and study the bidding documents well. If there are any repairs and leaks, that might add extra expenses to the deal. This will take away the added cost advantage when you buy the property at lower than market value.<\/p>\n\n\n\n Before the bidding starts, bidders are supposed to shell out 10% of the property value as deposits. If you lose the auction, you\u2019ll be reimbursed for the money you deposited. But if you win, you must pay a significant percentage of the property value to the financial institution on short notice.<\/p>\n\n\n\n Buying an auctioned property can be a smart investment decision, considering you understand the pros and cons beforehand. Go through the bidding documents and physically assess the property before making the purchase.<\/p>\n\n\n\n If you need immediate funds to buy your dream abode, turn to Tata Capital. We extend home loan<\/a> at competitive interest rates, starting at 6.70% over flexible tenures.<\/p>\n\n\n\n Moreover, you only need to submit minimal paperwork to quickly access low-cost housing loans worth Rs. 5 crores. Enjoy seamless online application facility and quick disbursals.<\/p>\n\n\n\n Check out our home loan interest rates<\/a> <\/strong>and charges and apply now!<\/p>\n\n\n\n#2 Great convenience<\/strong><\/h3>\n\n\n\n
#3 Prime location<\/strong><\/h3>\n\n\n\n
Cons of buying an auctioned property<\/strong><\/h2>\n\n\n\n
#1 Bidding<\/strong><\/h3>\n\n\n\n
#2 Physical assessment<\/strong><\/h3>\n\n\n\n
#3 Mandatory pre-bidding deposits<\/strong><\/h3>\n\n\n\n
To sum up<\/strong><\/h3>\n\n\n\n