Mortgagee Auctions May Not Provide a Bargain
With mortgagee in possession property you should look before you leap with professional research to negotiate the purchase of an Australian real estate mortgagee sale
A mortgagee auction attracts a lot more attention than if it was sold by an individual real estate agent who negotiates an offer to purchase between the mortgagee (seller) and a buyer. It is important to remember that mortgagee auctions have a legal obligation to make an effort to get the best price for the property – that’s why they are auctioned. As a buyer of at a mortgagee auction, unless you are holding a sworn bank valuation in your hands, you will possibly pay too much for the property.
Date: March 27 at 3:30 PM
Published by: Mortgagee Property Limited
Category: Australia Real Estate
It is important to remember that mortgagee auctions have a legal obligation to make an effort to get the best price for the property – that’s why they are auctioned.
As a buyer of at a mortgagee auction, unless you are holding a sworn bank valuation in your hands, you will possibly pay too much for the property.
As interest rates rise, mortgage repossessions will start to increase as well. But while there may be many choices in the market and in some instances, these may provide savings of 10 to 20%, the fact is that the fundamentals of real estate investing remains the same – the design of the property, its location and bank valuation are important.
Real estate investors should look at mortgagee auctions as nothing more than a ‘potential’ bargain. Without proper due diligence and a sworn bank valuation you may acquire a great piece of property without any potential to appreciate for many years.
Basically, the only distinction of mortgagee auctions is that you are dealing with a very committed seller who wants to get rid of the property as quickly and at the highest price possible.