Key Facts About Property Auction

Benefits of buying property in an auction

  • - Public auctions reveal the true market value of the property because they are conducted in an open forum where all bids are known. Therefore, it provides the venue for potential buyers a chance to own a property of their choice at the price that they want. You bid for what you are prepare to pay for.
  • - Smart investments are made as properties are usually purchased at fair market value through competition.
  • - The buyer knows that the seller is committed to sell.
  • - Auction also reduces the time to purchase property.
  • - Buyers receive comprehensive information on property via due diligence package.

Benefits of selling property in an auction

  • - A sale by public auction would be able to generate a higher level of interest amongst would be purchasers due to its wider publicity and greater degree of transparency through an open bidding process.
  • - As it is done through in an open forum, potential buyers can comfortably put in their bids without worrying about any manipulation or underhand tactics.
  • - A sale by public auction would ensure a quick sale, as it would avoid a long drawn negotiation process, which could occur in a sale by private treaty.
  • - Buyers come prepared to buy. A sale by private auction exposes the property to a large number of pre-qualified prospects.
  • - Quick disposal reduces long-term carrying costs, including taxes and maintenance.

Salient features of an auction

  • - Potential buyers/ bidders are reminded bring along their credit card (Master or Visa Card) or a banker's cheque / cashiers order with a sum equivalent to 5% of the publish reserve price. Personal /company cheque are not accepted.
  • - Bidders are required to register their bids. Remember to bring your identification cards or an authorization letter if you are bidding on someone behalf.
  • - A bidder is given a paddle with a number to identify them.
  • - Explanation on auction proceeding by the auctioneer and entertaining question.
  • - Auctioneer will starts soliciting bids, which is made orally, with the raising of the paddle.
  • - The bidder with the highest bid will be announced as the successful buyers.
  • - The successful buyers must immediately complete a sale contract and pay RM30 as stamp duty.