How to buy property at an auction
specified period, they would lose the sum paid earlier. Some banks do offer loans for buying auctioned properties; however, as there are stringent time limits, one needs to ensure that they have the necessary funds available before participating in a property auction.
Points to Consider: Though beneficial in terms of property value, buying a property in an auction is not feasible for everyone.
In case of aggressive bidding, the price could go much higher, eliminating the cost advantage. Therefore, a careful assessment of the property is critical along with wise bidding.
Check the property documents thoroughly through a lawyer, if necessary.
A bank auctions a property ‘as-is-where-is’ which makes the buyer liable for any renovation cost or unpaid taxes on the property. Hence, a proper inspection is critical to assess the property’s true value.
Buying a property at an auction is a relatively new concept in India and while it might seem to be a lucrative option, it requires the buyer to have really deep pockets to acquire one. Moreover, there are certain safeguards one needs to practice to enjoy the advantages that an auctioned property offers.
— The author is CEO, BankBazaar.com
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