Buying a house on auction ...

S

sdd

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We have seen a number of houses advertised on auction but have never do so before.

Any pointers about buying on auction?

There is one that caught our eye and it is almost brand new (less than 1 year old)

I will be speaking to our advisor this weekend but wanted to get some info as well.
 
Where do you see them advertised?

I wouldn't mind a peak!
 
Wow
Just saw some listings, Think I need to take a few days leave and borrow a bakkie!!:eek:
 
One or two things to consider when buying a house on auction:

Remember that it's likely the reason the house is being sold on auction is because the owner needs to get out of it in a hurry (normally due to financial reasons). If they can't afford the house, how did they afford maintenance? Even a one year old place needs some work along the way so best you check it out thoroughly before auction day

Always make sure of what is outstanding with regards rates & taxes, electricity bills etc as the new owner is liable for any of these (I was caught out on my first auction purchase to the tune of just over 10K... and that was 10 years ago - bank repo that had been on their books for about 6 months)

Don't get caught out in the hype of the sale. No matter how much auctioneers claim to not be running the price with ficticious bidders, trust me they do. Do your homework, decide on a max price you'll pay for the unit and don't bid over that amount... even if it's only a few 100 rhondt. I've seen many a punter get fskd over in the excitement of proving who has the biggest dck

Also look out for buyers commission auctions (seen a few of these lately) and make sure of any VAT implications there may be.
 
Sites? Or do I need to phone the bank for a list?
 
"No matter how much auctioneers claim to not be running the price with ficticious bidders"

really? damn.

but ive seen some ppl get great deals before!!

(family accross us broke appart, and the guy couldn't afford it, and auctioned it. R350 000 for a fairly large, nice house, with a pool and patio! ) that was about 4-5 years ago...
 
Keeper said:
"No matter how much auctioneers claim to not be running the price with ficticious bidders"

really? damn.

but ive seen some ppl get great deals before!!

(family accross us broke appart, and the guy couldn't afford it, and auctioned it. R350 000 for a fairly large, nice house, with a pool and patio! ) that was about 4-5 years ago...
Click to expand...

For sure there are bargains to be had, just make sure you know what you are buying and what a fair price is for it.

Much the same could be said of a trip to the Oriental Plaza in Fordsburg ;)
 
Remember: all auction goods - whether property, cars, consumer goods, etc - are sold "as is"

With the new credit act, if you are going to buy a property bonded, then you must have a pre-approved homeloan.

Make sure of the additional costs. Things like levies and VAT are added onto the hammer price. Also, remember transfer duties may be applicable.
 
The lists that banks send out (PIP lists) are normally for properties that they have already bought at public auction by the Sheriff.

You won't get a big bargain buying directly from a bank but you usually don't have to put up with the hassle of a big outstanding water and lights and rates bill.

Two kinds of auctions nowadays:

-- "auctioneer" type where someone who is in trouble, or just someone who wants their house sold quickly, goes the auction route - auction alliance or some such.
-- "sheriff" type where the relevant sheriff for the area is asked to sell the property by public auction to recover oustanding money (usually bond, rates and taxes)

Sheriff type is where you are more likely to get bargains -- but you do have to pay upfront 10% deposit and buyer's commission (another 3% and upwards). Also all the rates and taxes or levies outstanding need to be paid by you and it's not always possible to find out beforehand how much that will be. The property may also be occupied by the defaulters and the creditor (bank, local authority) won't guarantee you'll be able to get free and undisturbed possession of the property. So you could pay for something you can't live in until you go through the long process of evicting somebody.

That isn't to say it can't be worthwhile -- it's just not as easy to find a real bargain as it seems on the surface.
 
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