Dreaming of owning a home is something very common, not only among couples, but also among the youngest, who want to become independent, be the kings and queens of their home and do whatever they want. But we are not going to fool ourselves, that supposes an economic outlay that not everyone has. Therefore, home bids can be a solution to get a house at a "bargain price", that is, below what the market stipulates.
But What are home bids? What advantages do they have? How should they be carried out? Are there drawbacks? This and more is what we are going to talk about next.
What are housing bids
Home bids, better known as home auctions, are a procedure by which, due to a judicial procedure, a home is put up for sale in order to pay off the debts that are owed, hence these are usually due to which they have been mortgaged (and not paid) or have been repossessed. In other words, we are talking about homes that will "pay" the debts that have been contracted by the debtor.
Currently, any property can be auctioned as long as it is repossessed or mortgaged, in addition to being linked to the debt being claimed. That is, you can find flats, commercial premises, chalets, garages ...
The good thing is that these usually come out at a much lower price than the market, although you should be careful since we are talking about home bids; You can give a figure of what you would pay, but other people can bid higher and usually the highest bidder is the one who takes the "jackpot."
The Advantages of Home Bidding
After what has been said above, there is no doubt that the main advantage of home bidding is undoubtedly the fact that it is going to buy at a price that may be lower than the market price. In fact, in some cases it can be taken out for very, very little, getting by selling it, not only recovering the investment, but much more.
Another advantage is the power access neighborhoods or areas whose homes are much more expensive, or there is no availability of homes for sale, which is an opportunity to live in a privileged place or get a house in those places. And who says a house says a place, garage ...
The not so great thing about real estate auctions
As not everything is 100% good, in the case of home bids there are also negative aspects that you have to take into account in order to make the decision to participate in one or not.
One of the biggest drawbacks you have is the fact that you will not have information about the property. In other words, you are going to buy blind. You cannot see the interior before bidding, nor will you know if someone is occupying the property, if they have debts with the neighborhood community. You won't even know the market price (unless you do your own research). The problem is that many home bids come out on short notice, which makes research more difficult.
Another drawback of home auctions is having to pay the entire amount we have set in a "short" period of time, With what, if you do not have it, it can be difficult to obtain the financing you require, thus losing the bid. That is why, when participating, it is important to have all the procedures done in case you really want that home.
What you should know about real estate auctions
If you are interested in participating in home bids, you should first know how this type of market works, because you will not be alone; there will be many more who will bid for those homes, and they may have more experience (and financial solvency) than you. Therefore, the key points to take into account are the following:
- Homes or real estate in general they will always come from banks, which have seized them, either for not paying the mortgage, or for a loan not satisfied.
- To be able to bid you need to make a participation deposit and this can be quite high.
- That ticket only gives you access to the bid, but then you will have to get financing so that they "trust" that if you buy something you will be able to pay for it.
- If you don't pay your bid within 20 days, not only will you lose that bid, but you will also lose your deposit and the initial investment you made.
The requirements to access the home bids
In order to participate in the housing bids it is important that, first of all, you are registered in the public portal of the State Agency of the Official State Gazette. If you are not, it will be very difficult, if not impossible, to access them.
On this page you can also find all the properties that are going to be auctioned.
Another requirement that you must meet is make the deposit that will be requested for each property in which you want to participate. And, depending on the property, a deposit is established that you must leave to be able to bid for it.
In general, once you are registered, and it is something that any natural or legal person can do, you only have to choose the properties in which you are interested and meet the requirements to bid, both the financing for it and also the deposit.
If you are the highest bidder, you will have a deadline to pay the amount in court that remains (since the deposit will be considered "first entry").
Where to reportte on home auctions
If, after what we have told you, you want to move on, you should know that home bids can currently be found online.
In fact, many are held online because it is easier to access and offers a larger audience (and potential buyers). There are many web pages that can inform you of the auctions that are going to be held, even in advance, to be able to decide whether to participate or not.
If what you are looking for are face-to-face auctions, you should know that these are no longer held because it stopped many from participating. Thus, currently all those that are carried out are through the Internet.