PROS & CONS OF AUCTIONING PROPERTY

1. PROS & CONS OF AUCTIONING PROPERTY IN MALAYSIA If you're searching for an inexpensive, below-market-value home, bidding on it at a property auction house may be a viable option for you. On the other hand, purchasing an auctioned property may be a hazardous business if you are not well-versed in the process and the dangers involved with doing so. What are the advantages and disadvantages of auctioned houses? But, before you get into a bidding battle, take a deep breath. The process of buying a home at auction on a Lelong website is different from purchasing a house from a known seller, and there are many advantages and disadvantages to consider before deciding on your next course of action. Pros:: 1. Lower home prices as a result of deregulation The first and most apparent incentive to purchase a home at auction is the lower price tag, which is often much lower than the market rate. Because you are not restricted by size or

2. location, you may be able to discover a perfect home that is normally out of reach of your budget. Paying less for a property also allows you to be more flexible with your budget, allowing you to devote more funds to other things such as remodeling and decorating your home. 2. Agents will get lower commission fees. According to the Malaysian Institute of Estate Agents (MIEA), the commission fees charged by estate agents for the sale and/or purchase of land or buildings in Malaysia are limited to a maximum of 3 percent of the property's selling price - a substantial sum. The advantage of purchasing an auctioned property, on the other hand, is that the commission cost for either an agent or an attorney, depending on your preference, maybe cheaper. Disadvantages: 1. Inability to inspect the property One of the major drawbacks of bidding on an auctioned property from a property auction house is that you will not have the opportunity to see the inside of the house before placing your bid. As a result, bidders will not know the state of the home at the time of placing their offer, which may result in a potentially hazardous investment for them. Not many people know that after purchasing an auctioned condominium in Mont Kiara, a corpse was discovered placed inside the unit's refrigerator, which had been cut into 11 pieces by the previous owner. Investigate the property as thoroughly as possible; even if you do not have access to the inside, there are other aspects to consider, such as the outside of the home. It is important to visit the auctioned property to obtain a better perspective; for example, you do not want it to be situated near a busy T-junction or a sewage facility, which would be detrimental to your purchase. A bonus is that you will get a thorough understanding of the overall housing market. Find more about the legal aspects of the property, inspection language, the kind of lease that the home is under, and more about the bank that owns the property in general. 2. It may lead to further problems.

3. The number of difficulties associated with an auctioned property from a Lelong website is greater than normal. Understanding that a caveat has been put on the property by a third party is a common stumbling block for home buyers. A caveat, which is derived from the Latin phrase that means "let him or her beware," is a temporary remedy used to safeguard the landowner's rights. A private caveat is intended to preserve a person's rights under a sale and purchase agreement for a limited period in anticipation of legal actions being brought against the individual in the private caveat. Having a private caveat in place may be a barrier since it will prohibit any transactions from registering to changing ownership from taking place while the private caveat is in effect.