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How to buy real estate at auction? What is the step by step that must be followed to be able to buy a house, apartment or just land in an event such as an auction? What are the participation requirements? Do you need to be of legal age or can a minor finish off such an event? What is the average property price?
Buying a property is the dream of many people. We are talking about own house dream, or the apartment itself, or simply land that is in the name of the person, so that he can call it “his”. However, it was easier to buy a property in the past than it is today, mainly because of real estate overvaluation.
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Today, a simple piece of land about 10 minutes away from a quiet town with 10,000 inhabitants already costs between 200 and 300 thousand reais, a real absurdity. When you already have a house on top, that value almost doubles. In this way, it is essential to look for ways to buy real estate more cheaply, and one of them is the auction.
In today's content, we are going to explain to you about how to buy real estate at auction. So, if you're looking to buy a property at a cheaper price, you've come to the right place. So, if you want to know more about it, follow us to the end of the content for more details. Come on, read with us!
What is a real estate auction?
But what is a auction of real estate? Before knowing how to buy real estate at auction, you need to know what the subject is about. Basically, in a real estate auction, land, apartments and houses are negotiated that no longer belong to the previous owners, but to financial institutions or the State itself.
In this way, in most cases it is possible to buy land close to the city center, with the house already built on top (or under construction) for less than 100 thousand reais. Wouldn't that be a dream? Unlike car auctions, the condition of these properties is close to 100%.
This is because the processes of attachment and seizure of unpaid properties in their financing occur very quickly. Thus, about 4 months after the lack of payment of one (or more) installment, the property is now available at auction. Keep reading with us to learn how to buy property at auction.
How much does a property cost in such an auction?
But, how much does a property cost from an auction? Well, that depends a lot. It depends a lot on the type of property we are dealing with, that is, on its real market value. Thus, there is no way to state a fixed value for all properties that are sold at auction.
However, as in a car or motorcycle auction, it is possible to take into account the 40% rule. But what do you mean by the 40% rule? It is not a rule, strictly speaking, but the vast majority of the most affordable auctions are sold between 40% and 60% of the market value of the product at stake.
Thus, a car whose FIPE is worth R$20,000.00 is usually sold for between R$8,000.00 and R$12,000.00. Of course, there are exceptions that this “rule” is broken, that's why we said it's not a rule per se. The same goes for the property, worth R$200,000.00, usually sold for between R$80,000.00 and R$120,000.00.
How to buy real estate at auction?
But after all, how to buy real estate at auction? So we come to the main topic of our content, where we are going to explain to our readers what needs to be done to buy land, apartment or furnished house at an event like this. Read below:
- Go to the official page of financial institutions such as Santander, Bradesco or even Caixa (Caixa's real estate auction is one of the most famous and sought after);
- Search for a guide with news, look for an open auction announcement with the date, time and place of the auction, or a videoconference link if it is online;
- Participate, bid and buy your property;
- Regularize at the competent real estate notary.
This was our guide on how to buy property at auction. To the next!
