Buying a house at auction: is that possible?

An enforcement auction takes place when a house is forced to sell, because the owner could no longer pay the mortgage. The sales price is a great service: the sounds so much to buy. In practice, it is mainly real estate traders that issue auctions, but you can also bid as a private individual. If you want them to buy a property, you have to prepare yourself well. Buying a house at auction: what do you have to take into account?

The foreclosure auction consists of two parts: first of all there is an auction by auction and then there is an auction at exit. The first auction is meant to determine the amount of the purchase. At the second auction the auctioneer starts with a higher starting amount than this sum and counts from this amount, maximum someone “mine” calls. This is also called demise. The one who calls “mine” becomes the buyer of the house.

It may be a good idea to take someone who is familiar with the auction process, as a broker of a notary. It is all very fast about such a foreclosure auction: before you go, the house passes by your nose. It’s better for you to join in online home auctions.

Arrange funding in advance

It is very important to have the financing solved in advance. When you buy a house at an auction is the hire purchase. There are no resolutive conditions. If you are the highest bidder, then you are obliged to take the house. For some executable documents, proof of sufficient financial resources must be shown as a bank guarantee.

Furthermore you are up for the auction and notary fees. It is important to know if herds have been laid on the house. These are for the account of the new owner. The notary is obliged to mention the multiples costs, prior or during the auction. Always ask for the costs.

View property?

It seems very useful to have the house on your eye. Especially when the sale is final, you obviously want to know exactly how the house has become. But strangely enough seeing the house is not possible at all in most cases. The owner of the house that is sold usually does not want to participate in a viewing.

The new law on the sale of residences for homes must be made available to private individuals to bid for auction houses. For some homes it is also possible to make an offer via the internet. The new law has been put together to realize a price between real estate traders, that the costs of auctioned houses are kept artificially low.

What else to think about

After the highest bid, the house is also given to the bidder. If the bank finds the bid too low, the purchase will not take place.

If you’re really interested

Only buy a house at the auction if you are really interested in a particular home and you are sure that you can pay for it. Be sure to bring an expert to the auction that can assist you during bidding. Sometimes you can make a private bid at the notary until a few weeks before the auction.