Buying real estate at auction becomes a complex process with several aspects to take into account, but advantageous due to the greater attractiveness of the price at which the item is available.
At the time of acquisition or search for a property, there are several factors that can influence the choice of the same. These factors are of great importance, whether in a private purchase or an auction purchase.
We speak, for example, of the condition and characteristics of the item – even if the properties are available at auction (through institutions such as Social Security, Tax Authority, among others) – it is of great importance to verify if it is in the appropriate state or if it has characteristics that justify the base value presented.
The location becomes, also, an important factor, since it may be a way to understand if the value requested is related to the place where it is located, or if it presents irregularities and price disparities.
It can then be referred that, in general, one should consider the same factors and conditions of the property that are considered in private purchases, however, one should realize that in the case of auctions, in addition to these aspects, one should also understand the rules of the auction – which may vary depending on the institution that organizes it -, the pre-emption rights – which may be related to the fact that there is a lease on the property, in which the tenants have priority in case of interest in acquiring it – or the possible existence of tax debts that have been the origin of the seizure of the property and that may constitute an additional expense.
An auction may mean a better opportunity to buy a property, however, it is important to consider the physical aspects of the property, as well as the financial issues that may influence the acquisition costs.