Why buy a property at real estate auctions?

Property auctions, notarial or judicial, allow anyone who wants to acquire a property that is available on the market (sold voluntarily by the owner or by force following a court decision). For French companies, auctions have significant advantages. What are the different ways to buy a property at auction? What are the notable benefits for participating companies? Explanations.

The various auctions

1) Notary auction

The notary auction is a classic auction. When an owner is struggling to sell his property, he can ask a notary public to arrange an auction. This auction follows strict rules:

  • The person selling their property must sign a check for 20% the disturbed price to the notary;
  • Competitors wishing to outbid the offer made during the auction have 10 legal days after the sale to propose a new offer (a minimum outbid of 10% of the winning sale price). After this time and without bids, the sale is official.
  • That 45 days delay maximum to pay the amount for the property sold at auction.

2) State auction

Property auctions are organized by the French state. This is real estate with no heirs, most of the time. These homes, guilt of heirs to the estate, is taken over by the State, which can then sell them at auction at unbeatable prices. However, it should be noted that these properties are regular in a state of disrepair (or at least in average condition) due to absence of buyers.

When the sale is completed, the buyer must:

  • Pay the bid amount within thirty days if it is worth 15,000 euros;
  • Pay the property in two stages for auctions between 15,000 and 76,000 euros. A first payment (1/3 of the amount), the first thirty days and a second payment (2/3), two months later;
  • Current interest rates apply to the amount due;
  • No notary fee is payable;
  • The title deed is drawn up free of charge.

3) Legal auction

The judicial auction is a sale called ” forced “. It follows seizure of a property due to unpaid debt or excessive debt. Companies wishing to invest in real estate sold at auction must:

  • be represented by a lawyer the day of the sale at the Tribunal de Grande Instance (TGI);
  • To visit once (for one hour) the property before the auction, under the supervision of a bailiff;
  • pay the good within 60 days.

The benefits of real estate auctions

The property auction has advantages for buyers and especially companies.

National auction sites: save time

Companies looking to buy real estate can go to Vench’s real estate auction page and consult all the offers offered in the national territory.

These sites have the advantage of could very specifically characterize the property desired by the company : a business premises, an office building, a storage unit, an apartment, a shop, etc.

It saves time for the company, which keeps itself informed in real time about the opportunities that are on the market, the days of visits, the date of the planned sale.

Property auctions: investment at a lower price

In general, the auction makes it possible to benefit from a property 15 to 30% cheaper than the market value.
For companies that want to invest in business premises, or e.g. have found an SCPI, this price reduction is beneficial! In particular, it makes it possible to meet the needs of companies to have larger offices, a storage area, without investing with large costs.

Legal auctions seem to be the most interesting because the disturbed prices are set at 30% less than the actual market price.

The real estate auction: Improving your brand image

Auctions are often the way to go discover rare or even impressive real estate. This is especially the case at estate auctions, where no heir has to complain in an estate context. Thus, the company that is looking for a property to invest, welcome its teams or meet the needs of its activity (opening a shop, public reception, opening a restaurant, etc.) can benefit from an original place that could not afford through a traditional sale.

Appreciate the brand, this opportunity must be seized! Properties located in large cities can be within reach of professional investors who then benefit from a municipality’s cultural influence to establish their business there.

Auctions, sure

Auctions are secure because permanently supervised by legal and real estate agents (lawyer, notary, etc.). For the company, it is a reliable, safe investment, which therefore allows it to consider the development of its activity in the long term.

Property auctions therefore offer advantages for companies that want to invest in stone. Whether to meet specific needs related to the company’s activity or follow its development, auctions, regardless of their nature, are an option to consider.

For more information, find the next property auctions: https://www.vench.fr/prochaines-ventes-aux-encheres.html

(Photo credit: iStock)

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