Property Investment Sales

Many people prefer to buy a house on auction here in SA, bank repossessed property often gets auctioned at low prices and those bargains can be picked up. Purchasing properties in this manner is very different to buying through an estate agent and the purchaser will be required to have usually between five and ten percent of the purchase price available as a deposit. This money gets held in a trust account to ensure legal compliance. The property catalogue at an auction will usually display an auctioneers commission payable on the sale and will vary between auctions.

The main difference between buying a house on auction instead of through an agent is that the purchaser is responsible for all costs in the transaction. Even the commission has to be paid by the buyer instead of a seller who would normally pay the estate agents fees. Many auction houses can offer facilities to arrange a bond or finance for a potential buyer through their affiliated bond originators.

It is wise to decide on an amount of money you feel you can afford to pay for a property before even attending an event. Decide exactly what amount you are comfortable with and the auctioneer should be able to give you an idea as to the estimated value of any property up for sale. You will get a more realistic idea of the value of any given home by researching the prices of other houses for sale in the same area beforehand if possible. There are a surprising amount of repossessed properties available these days so check your local newspapers and be on the lookout if you are in the market to buy a house on auction in South Africa.

No related posts.