Interested to find Singapore properties going for auctions? There are 4 big licensed real estate auctioneers in Singapore and not in order of merit, they are:
How does property auction work?
Property auctions usually happen once a month and sometimes, twice. You will be able to find the schedule of auctions in the respective websites of the auctioneers. The announcement of each auction is usually made 2 weeks in advance.
The seller of the property will set a reserve price that is only known between the auctioneer and seller. Initially, the auctioneer will open the bid with a slightly lower price than the reserve. The unit of each bid is between $10,000 to $20,000. Bidding will close if no higher bids are made. The highest bid in this case will be compared to the reserve price. If the former is higher than the latter, the transaction will go through. However, if the reverse is true, such that the winning bid is lower than the reserve price, the seller has the right to reject the bid and the property will not be sold.
The winning bidder will make a 10% deposit of the bid price. The sale will complete in 10 to 12 weeks from the auction date, and the remaining 90% will have to be paid.
4 kinds of seller
- Owner’s Sale – Owner of the property, simple.
- Mortgagee’s Sale – Usually this is a repossessed property when the borrower defaulted the loan. The mortgagee is either a bank or financial institution.
- Trustee’s Sale – According to the will of the decease, the trustee handles the sale of the property and distribute the money to the beneficiaries.
- Liquidator’s Sale – Company defaults a loan and a liquidator is appointed by court to sell the company’s property to repay its debts.
Things to do before the auction
Inspect the property
Nothing beats a visit to the property to be auctioned. Arrange to view the place with the auctioneer before the auction. You will be able to see the condition of the house and also get a feel of the neighborhood.
Check terms and conditions
Take note of the clauses and the strings attached. Are furnishings part of the sale? Is there a tenant? Find out the details so as not to have any surprises when you win the bid.
Once you are happy with everything and eager to own the house, be sure you get the money ready. As mentioned, you would need to make a 10% deposit. Thus, make sure you have the money ready. Next, consult your bank to work out a loan to cover the shortfall. You do not want a case whereby you won the bid but not able to get a loan approved. If you void the contract because you are unable to pay the remaining 90%, your deposit will be forfeited. Worse, you may even have to pay for the shortfall when the property is re-sold for a lower price.
NOTICE: WE NO LONGER PROVIDE AUCTION LISTS VIA EMAIL. PLEASE SIGN UP DIRECTLY WITH THE AUCTION HOUSES.