Best practices for participating in bank auction

You probably already know that participating in bank auctions is simple and time-saving. FindAuction.in collates almost all available properties up for auction in real-time on the site. We have made browsing and searching for properties of your choice super convenient and efficient for you. However, there a few basic but important things that you should keep in mind before participating in bank auctions

• It is advised that you maintain the 10% Earnest Money Deposit (EMD) amount + the 15% of the bid amount. You never know, your bid might just be the winner and you don’t want to start running pillar to post for arranging this amount. Not having this amount will also mean losing the initial 10% paid upfront for participating in the auction

• For the remaining 75% you have the choice obtaining a loan from a bank. To be better prepared, you could take a pre-approved so that you are comfortably placed after winning the bid

• Always compare property prices in sq. ft. against the market prices for a given location

• Ask if the auctioning bank has a symbolic position or a physical position

• Always inspect the property thoroughly. Account for any renovation or repair costs that the property might require for making it habitable

• Try and investigate if the property has any outstanding dues attached to it which were unpaid by the previous owner. Typically, auction properties have been identified to have unpaid electricity or water bills. In many cases, the amounts are nominal but you never know and it’s always better to be safe than sorry. Since the banks won't pay these dues, it will be your responsibility to clear it for continued supply of the aforementioned utilities

• Do a valuation of the property after adding repair cost + dues (if any) and compare it with market price. Make an informed decision

• If it is your first attempt at bidding in an auction, you should ask for a bidding demo from an authorized entity

• If you have any questions or doubts regarding the property, you have the right to contact the authorized entity

Well, that’s about it. Keep these rules of thumb in mind before you decide to participate in a bank auction and you will be on your way to making a smooth transaction, if you land up winning the bid

It is possible that we may have missed out on some points here which may be specific and relevant to a particular case.

Yet, if you have any queries or need support in taking that first step towards investing in an auction property, then we’re here for us. Drop us a mail about your concern or any questions that you may have at hello@findauciton.in and we’ll get back to you at the earliest.