Hello, Ronald here! In my maiden post, I am going to share with you some of the tips that I found useful when buying KLCC properties at auctions.
Safety Tips When Buying KLCC Homes at Auctions
These days, if you’re looking to buy a KLCC apartment at a reasonable and affordable price, the auction is the best way to go. It suits those who are looking to close transactions quite quickly as well! The home auctions are becoming the easiest, quickest not to mention the cheapest alternative there is to making buying KLCC properties – including exotics such as the Troika, for example. 🙂
But just as quick and easy as they may seem, buying homes at auctions can be quite daunting and risky, especially for the newbies. So, don’t get into that unarmed and not ready for what lies ahead. Become an informed buyer and follow these safety tips when buying homes at auctions:
- Get a good solicitor. You cannot do without a solicitor so always find one whose personality and working ethics will suit you. This is a huge transaction and no matter how cheaply the house was sold for, you’d still pay 5 or 6 digits in amount for it. Your solicitor will make sure that you’re getting your money’s worth.
- Research on the credibility of the auction house. They will handle the whole process. In traditional real estate transactions, the auction house is just practically the brokerage firm or the seller’s agent. They have something of their own in every bid; just as the agents have their commissions, the auction houses also get their own share – a percentage of the final bidding price. It would be such a shame to find a sham auction house.
- Read the brochures carefully. The prices, the mechanics, everything about an auction sound fun and easy. But you have to remember that this is business, it involves money, and it is sealed in a legally binding contract. Unless you want to be trapped in a legal battle, make sure you read every single detail on the brochure – especially those little footnotes that seem unimportant. And don’t forget to send a copy of the brochure (and all the other papers involved) to your solicitor for advice and consulting. They know the trade better! Some developers do a bang up job on their brochures – look at those by RuMa if you want inspiration.
- Hire a good home inspector and do an inspection before the auction date. You may have to arrange for it but trust me, it is going to be well worth every minute of your time. This will help you determine how much the house is likely worth, and thus help you decide on your bidding amount.
- Make sure you have money before going to the auction. At least have the amount that you are willing to pay for your home at the auction. Remember that you have to pay 10% of the final bid on the day of the auction. Also, you’d have to close the deal and finish payment within the next 28 days so at least get approved of the mortgage beforehand or secure the mortgage as quickly as possible.
- Keep the bid within your limit. You cannot let your emotions decide on how much you are willing to bid – stick to what’s fair and don’t let the bidding process get the best of you. It is sometimes tempting to bid with gusto but that won’t get you a great bargain at all!
Good luck and follow these safety guidelines! Any questions? Email me at email@example.com or call 012-3478331.
PS: I will blog more about KLCC properties like Binjai On The Park, Marc Residence and One KL in my next post. Keep your eyes peeled! 🙂