How to buy an apartment from an auction?
Did you know that in the modern real estate market it is possible to buy an apartment below market value? This can be done by participating in auctions. Read about where such auctions are held and how to buy an apartment from the auction below.
I'll start with a pleasant one. Auctions open up the opportunity to purchase living space at a price that will be 10-50% lower than the market price. Buying a home at half price - isn't it a dream? There are, of course, some disadvantages here, but I will talk about them later.
What kind of property is being auctioned?
As a rule, this is the property of individuals or legal entities, which was confiscated or arrested for various reasons. For example, for long-term default on debt obligations.
Where are the auctions held?
Information about upcoming auctions can be found on the online platforms:
- Russian Auction House website
- Implementation center
- Sberbank AST
- Fabrikant.ru
How to bid?
Citizens of the Russian Federation who have SNILS, TIN and Russian passport are allowed to bid. The participant must be sure to have a digital signature and a certain amount of money to make a deposit.
To participate, you must register on the online platform, which is responsible for the auction, submit a full package of necessary documents and be accredited. You will be included in the list of participants only after submitting an application and paying the full amount of the deposit. After the end of the auction, the money will be returned to all losers. If you win, the deposit will be taken into account towards paying off the cost of the apartment.
How is the auction going?
Trades are conducted online. The time and place (online platform) for the auction is assigned, the participants are sent access. At the beginning of the auction, the initial value of the property and the rate by which the price can be increased are indicated. The participant who offers the highest price wins. If no one is willing to raise the bid, the bidding ends.
The winner needs to deposit the remaining amount of money within 5 days and draw up a contract for the sale of real estate. The winner of the auction receives all the documents for the apartment and becomes its owner.
If the winner does not appear for signing the contract within 5 days, the right to win is transferred to the participant who offered the previous price. The deposit will not be returned to the winner.
Bidding is a great opportunity to buy an apartment for cheap. But now I will tell you a little about the cons and "pitfalls".
- The disadvantage of bargaining is that usually participants cannot see the apartment. After the purchase, it may turn out that the apartment does not meet the declared characteristics.
- After purchasing the apartment, the winner will have to meet with its former owner to collect the keys. The owner may refuse to hand over the keys and leave the apartment. In this case, you will have to spend time, effort and nerves to evict him with the help of the intervention of authorized bodies.
- If underage children are registered in the auction apartment, it will be difficult, because the legislation does not approve the eviction and discharge of children.