Silvana Saldisuri
08/30/2021 6:01 AM
Clarín.com
Services
Updated 08/30/2021 6:01 AM
There are different ways to buy a property, even at auction.
In recent years, the offer of
properties at auction has increased
, whose main characteristic is the possibility of obtaining a much
cheaper
real estate
.
The origin of these properties are due to vacant inheritances or unpaid debts.
They come from banks or seizure processes for owners who have not complied with their mortgage or loans, so the bank
keeps the property
and puts it up for sale at
auction
.
Although at first glance it seems an interesting option to consider, it is necessary to review the
preconditions
to be
able to access the auction
.
Historically, auctions were always an unusual channel for private buyers, they were intended for investors and / or people related to the auction market.
In the last two years, hand in hand with the introduction of greater comforts and security measures in the areas of
judicial auctions
in the Federal Capital,
the interest of non-habitual buyers has grown
.
Housing in Agronomy that was offered in a recent auction.
Photo: Archive
"Undoubtedly, these types of
operations
are
highly recommended
, especially because they are specified in
pesos
. Which is very useful for those who, because of the exchange rate, cannot acquire dollars to buy a property," said
Marta Liotto
, vice president of the Unique College of Real Estate Brokers of the City of Buenos Aires,
Clarín
.
What should be taken into account before offering a property at auction?
"Anyone who wishes to participate by buying a property in judicial auction is essential to have
the file reviewed by a lawyer
in order to clear up any doubts in relation to property rights. When the property is in effective possession, charges, taxes and commissions will be sent. that will be in charge of the buyer, "said the director of Real Estate Report,
José Rozados
, to
Clarín
.
In addition, before offering a property it is important to:
.
Visit the property
in order to recognize the state conditions since a large number of the homes that come to this instance are not in very good condition.
This will serve to evaluate the additional investment that must be made to repair the property.
.
Consult
and obtain advice on the
base price and market value of
the property, and based on this, set a maximum value that will be reached in the auction.
. Be rational when bidding on prices.
Do not enter the maelstrom that can be unleashed under pressure from other bidders.
In the last two years, the interest of non-habitual buyers in the auctions has grown.
Photo: Archive
How to access a property auction?
.
To participate in the auction, those interested must be accredited with a
valid ID
.
.
An
initial deposit
must be made on certain properties,
which can generally range between
5% and 10% of the value
at which the auction starts or what the auctioneer determines.
In the case of public auctions, the percentage is lower, or null.
This seeks to prevent the price from skyrocketing and the interested party to comply with the payment.
This money is returned if the property is not acquired
.
. In case of winning the auction,
generally
30%
of the value of the final price of the property
must be transferred
.
The
auctioneer's
3% commission
must also be paid
(+ VAT if applicable, according to the auctioneer's tax registration).
.
Once the clerk intervenes,
the deed takes between 30 and 45 days
, then the
remaining 70%
of the value of the home
will have to be transferred
and immediately possession of it is taken.
An advantage of buying a property at auction is legal certainty when transferring the property.
Photo: Shutterstock.
What are the advantages and disadvantages of buying properties at auction?
"The advantages of buying through the auction are centered on the
opportunity cost
that the channel offers, mostly the setting of the base value (Beginning of the auction), which is around
30 or 40% less than the market values
" , highlighted the president of the auction site Narvaez Bid,
Fabián Narvaez
.
Meanwhile, he added that another of the advantages is
legal security
at the time of transferring the asset.
At first glance, the economic benefits are considerable given the high cost that a property can have.
However, this does not mean that there are no
extra payments
.
Just as buying a property involves operational expenses that must be paid, acquiring a property at auction also involves other associated expenses.
In that sense, it is necessary to know that
between 10% and 12%
It will be used to pay taxes and certificates, to the real estate commission and to the notary's fees.
Among the
disadvantages
is losing the possibility of acquiring a property due to the presence of many interested people, since the more audience there is, the higher the cost of the house will be, and vice versa.
In this sense, it is recommended that, if you have a good capital, it is better to go for auctions where properties are auctioned at higher prices, since a raised floor allows fewer people to participate.
Another current disadvantage is related to the virtual world.
With the pandemic, today you can opt for
100% online auctions
to give more health security to those interested.
Although this instance allows you to acquire a property from the
comfort of your home
, in many cases you do not have the opportunity to make a prior visit to the homes in person.
The advantages of buying houses at auction are in the opportunity costs of the property.
Photo: Reuters.
Should you ask for a mortgage loan to pay for a property that is up for auction?
Keep in mind that many of the houses for sale are owned by people who,
unable to pay the debt
, ended up with millions in losses.
So if you do not have the minimum floor of 20% of the value of the property, it can be a great risk for the pocket.
On the other hand, as detailed by Marta Liotto, most
properties must be paid within a period of 30 to 45 days
depending on the property and, in general
,
mortgage loans
, which are currently scarce and with very high rates,
take longer
than this, so it would not be a good alternative.
Housing in Palermo that was offered in a recent auction.
Photo: Archive.
Property auction in the City of Buenos Aires
For those looking to access a home at a convenient price, the
Banco Ciudad real estate auctions
may be an opportunity.
Once a month, approximately, the entity offers several properties in the Federal Capital that were left without an owner and, therefore, passed into the orbit
of the City Government
.
The last one took place on August 25.
It is currently carried out through the online modality that offers a simple and dynamic mechanism that extends the scope of
participation to the entire National territory
.
The auctions of properties with vacant inheritances are held monthly throughout the year at
Banco Ciudad
and interested parties can consult the
auction calendar
on the digital platform
(https://subastas.bancociudad.com.ar/)
, which It is presented by item, with the description, images and base price of each lot.
. Requirements for prior registration:
those interested in making offers must register, up to 48 business hours before the start of the auction.
Participation requires a guarantee deposit of 3% of the base value of the property to be purchased (amount that will be returned in full in the event of no bid or that the bid is not winning within 7 business days of the auction closing ).
In addition, an
address
in the Autonomous City of Buenos Aires and an
must be provided, which will be valid for all legal purposes derived from this auction.
. Development of the electronic bid through the online auction portal:
on the date and time indicated, a bid application will begin through the portal (https://subastas.bancociudad.com.ar/).
Bids must be made only through the auction site.
Each bidder may make the number of offers it deems necessary until it is awarded or is exceeded, during the duration of the public auction.
Adjudication of the property:
then, within 48 business hours after the auction (immediately upon completion, the winner receives an email with the notification of the award of the lot), the payment of 10% of the price must be made of sale as a down payment and 3% corresponding to the commission plus VAT.
Once it is received, the funds secured as collateral are returned.
The total integration of the balance will be carried out in the terms that the deed times take, which will be led by the Procuratorate.
The home auctions carried out by Banco Ciudad can be accessed 100% online.
Photo: Archive.
Step by step, how to participate:
1.
Those interested must have an electronic device: tablet, notebook, PC, smartphone or similar with WIFI connection.
2.
Register as a user through Self-Management at https://subastas.bancociudad.com.ar/.
3.
Enter the auction of interest at https://subastas.bancociudad.com.ar/ 4. Read conditions of sale.
5.
Make the transfer of the amount of surety that enables to participate.
6.
Receipt of the authorization email.
7.
The participant can now bid.
LN
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