For most of the home buyers, especially first-time home buyers, sticking to the budget plan are very crucial. But, home buyers usually forget that the asking price of their dream house comes with additional costs such as mortgage payments, property taxes, maintenance costs and even optional projects such as renovations and landscaping.
Due to these factors, first-time home buyers need to do a comprehensive research before buying their dream property. They also need to consider a variety of home acquisition methods to see which one best fits their budget and goals.
One method that can be considered by the first-time home buyer is through auction listing as the properties sold by this way are usually below the market price. This can be a good platform for the first-time home buyer to stick to their budget plan.
In a conventional sale, the house price usually depends on several factors such as what other properties in the community recently sold for, the current supply and demand in that community and what appraisers deem to be the advantages and disadvantages of such property. Not to forget the seller’s real estate agent that becomes the one pulling the strings which may increase the house price. However, in an auction, the buyer will have the power to decide what is the fair price of the property is.
Besides that, in an auction, if you are really interested to buy a property, you better bring your check book along. This is because, unlike traditional listings, which can sit on the market for months (even years), homes at auction are sold expeditiously. At the end of the auction, you will immediately become the house owner after the deposit and all financing has been settled.
Just don’t easily fall to the appealing price of the auction house before you conduct a brief overview of the outstanding taxes or any bills on the property. If you neglect to do this, you could find yourself saddled with tens of thousands of ringgits of the previous owner’s debt.
Another thing that you need to inspect is the condition of the auction property. However, usually in an auction, thorough inspections are not allowed. Often, the person or organization responsible for the auction only gives potential buyers a few minutes to look at the property. Without the ability to conduct a proper inspection and property assessment, rash buyers can easily blow their budget renovating a home they thought was in good condition.
Thus, you should be very prepared and responsible for your dealings in a property auction. Try not to do panic buying to avoid additional or hidden cost charged on your side. If first-time buyers want to become players in the auction game, they need to become their own real estate agent, learning about the housing market, neighborhood demand and legal issues surrounding auctions. You should consider other costs in property acquisition such as property taxes, maintenance costs, utilities and even the lawnmower. This is because, in an auction sale, however, there’s no going back on a property you’ve won, even after you’ve found RM100,000 worth of repairs and RM50,000 in outstanding taxes from the previous owner.
In Wonderlist Property platform, we have many auction listing available! Check it out!