Every time I share with people that I am a Licensed Auctioneer, their first question goes something like this. “Any good deals or not?’ My answer? ‘Tell me what are you looking for and I will find for you.” Their answer is usually something unclear or they then say auction properties quite dangerous. The reason? We may buy a property where there are still people staying in it and removing them will be tough. Or… they tell me about that murder case which the buyer found out only after opening the fridge which happened a very long time ago but the topic is very much alive today. Briefly, there are definitely lots of good auction properties nowadays because of the slow market. This is the same as the primary market where the developers are offering so many freebies or the secondary market where owners are now willing to consider lower offers instead of hanging up the phone as soon as you ask for price reduction just 5 years ago. An update on Malaysia’s auction market.
Article in thestar.com.my Article quoted a valuer as saying in May that number of properties entering the auction market due to payment defaults will increase in H2 2019. A bank source then confirmed this assessment and said that it is now proceeding with the foreclosure process if borrowers default for three consecutive months versus six months previously. Auctionguru.com’s executive director Gary Chia says that for the first four months of 2019 until April 30, AuctionGuru.com recorded up to 11,203 units (RM5.85bil) being auctioned. Chia added, “The number of units entering auctions is rising every quarter. This means housing loan defaults are rising.” Leong Auctioneer’s Leong Wye Hoong shares that when a borrower defaults on his mortgage, it sometimes took two to three years for the property to come under the hammer. It is a lot faster today. He also shared that it takes longer to sell these days. Before this, a property could be sold after the second or third round. It takes three to four rounds to sell today and every round meant an extra 10% drop in price. Do read the full article here . Article in thestar.com.my
That very last sentence is extremely important yeah. ‘It takes longer to sell. Now, the property is sold only during the 3rd or the 4th round.” In other words, if we are looking for super good discounts for properties we like which happened to be in an auction, this is the best time to bid and win. If you really still want to ask me on auction properties, feel free to call my business development manager, Hadwin Wong. (012 257 9431) Please share very clearly the type and price of properties which you like to bid for. He will help to find and then register you. Oh yeah, even if you are not buying, there’s no harm in dropping by some of these auctions and feel the environment yeah. It’s great for buyers looking for good deals. It’s bad for the defaulters. Happy looking at auction properties.
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Article written and edited by Charles. News article summarised by Dina Batrisyia.
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