One’s loss is another’s gain.
Many Singapore investors like to find bargains at property auctions that is been held and organised by a number of property agents.
Well, If you are looking for such deals and are keen to know more, you can reach out to the auction department of Colliers, Knight Frank and Jones Lang LaSalle. Feel free to email them to add your name to their auction distribution list.
It is always good to do some homework first to see any of the property listed are of your interest. Delve deeper by calling the person-in-charge to ask for more details before attending the auction.
In case you can’t make it there, you can ask one of their staff to bid on behalf of you.
Though you may find great deals, but quite a number of property investors are not so keen in buying at auctions as
1) 10% of the purchase price has to be paid on the spot.
2) If you are the successful bidder, you have to proceed with the purchase under any circumstances.
3) Auction is auction – You may set up an invite to other bidders and end up paying a lot more than the base price.
Having said that, it seemed like its easy to find good deals in auctions now.
According to Straits Times article –
Number of houses put up for auction in 2015 doubled to 87 units from 47 in 2014. There were only nine properties under mortgagee sales in 2012, when the property market was growing.
What is the house under auction is not able to sell
If the property has undergone a few rounds of hammer and still unable to sell, the property will become a mortgage sale in the open market.
Since the objective of the bank is to recover the mortgage amount as much as possible, they will be more open to any offer from sincere buyers. That’s when buyers can expect a good bargain.
Usually, these bank sale units are marketed by a handful of property agents.
Questions to be asked when buying a property under mortgage sale
1) What is the last offer rejected by the bank? (to check where you should start with)
2) When did the bank receive the last offer? (to see how desperate the bank wants to sell)
3) How much does the mortgager owe the bank? (to estimate how low the price can go)
Have fun bidding under the hammer!