Why buy a property at real estate auctions?

Real estate auctions, whether notarial or judicial, allow anyone to acquire a real estate available on the market (sold voluntarily by the owner or by force after a court decision). Auctions have important advantages for French companies. What are the Different Ways to Buy a Home at Auction? What are the standout benefits for participating companies? Explanation.

The different auctions

1) Notarial Auction

The notarial auction is a classic auction. When an owner is struggling to sell his property, he can ask a notary to organize an auction. This auction is following strict rules :

  • The person selling their property must sign a check for: 20% the counter-price to the notary;
  • Competitors wishing to bid higher on the bid closed during the auction have 10 legal days after the sale to propose a new bid (a minimum overbid of 10% of the sale price won). After this time and without bidding, the sale is official.
  • The 45 days delay to pay a maximum of the amount of the good sold at an auction.

2) State Auction

Estate auctions are organized by the French state. This is usually real estate without heirs. These accommodations, wrong of heirs to the estate, are acquired by the state, which can then sell them at unbeatable prices at auction. However, it should be noted that these properties are regularly updated in a state of disrepair (or at least in average condition) due to the absence of buyers.

Once the sale is closed, the buyer must:

  • Pay the amount of the offer within thirty days if it is worth 15,000 euros;
  • Pay for the property in two phases for auctions between 15,000 and 76,000 euros. A first payment (1/3 of the amount), the first thirty days and a second payment (2/3), two months later;
  • Current interest rates apply to the amount to be paid;
  • No notary fees have to be paid;
  • The title deed is drawn up free of charge.

3) Judicial Auction

The judicial auction is a sale called ” forced “. It follows attachment of a property due to unpaid debts or excessive debts. So, companies that want to invest in real estate that will be sold at auction must:

  • are represented by a lawyer the day of the sale at the Tribunal de Grande Instance (TGI);
  • Visits once (during one hour) the real estate for auction, under the supervision of a bailiff;
  • pay the good within 60 days.

The benefits of real estate auctions

The real estate auction has advantages for buyers and especially companies.

National auction sites: time saving

Companies wishing to buy real estate can visit the real estate auction site in Vench and consult all the offers offered on national territory.

These sites have the advantage of: to be able to very specifically characterize the object desired by the company : a commercial space, an office building, a warehouse, an apartment, a shop, etc.

It saves time for the company keeping abreast of the available market opportunities, the visiting days, the date of the planned sale in real time.

Real Estate Auctions: Invest at a Lower Cost

In general, the auction makes it possible to: benefit from a property that is 15 to 30% cheaper than the market value.
This price reduction is advantageous for companies that want to invest in business space, or have found an SCPI, for example! In particular, it makes it possible to meet the need of companies for larger offices, a storage space, without investing at great cost.

Judicial auctions seem most interesting because the distorted prices are set at 30% lower than the actual market price.

The real estate auction: strengthening your brand image

Auctions are often the way to discover rare or even impressive real estate. This is especially the case with estate auctions, when there is no heir to regret in the context of an estate. Thus, the company looking for a property to invest, to welcome its teams or to meet the needs of its activity (opening of a shop, public reception, opening of a restaurant, etc.), can benefit from an original place, which it could not have afforded through a traditional sale.

Appreciation for the brand, this opportunity must be seized! Homes in large cities can within the reach of professional investors, who then take advantage of the cultural influence of a municipality to establish themselves there.

Auctions, safe

Auctions are safe because: strictly controlled by lawyers and real estate professionals (lawyer, notary, etc.). For the company, it is a reliable and safe investment, allowing it to think about the development of its activity in the long term.

Real estate auctions therefore offer advantages for companies that want to invest in stone. Whether for specific needs related to the business’s activity or to monitor its development, auctions, regardless of their nature, are an option to consider.

For more information, find the following real estate auctions: https://www.vench.fr/prochaines-ventes-aux-encheres.html

(Photo credit: iStock)

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