• Chances of getting the property at a very reasonable and low price.
• Auction properties are cheaper and the prices are 15 to 25% lower than the market value. The auctioning bank has an interest in recovering the loaned amount, so the price of such property is kept at a discount.
• It is very safe and secure
• The property is verified by banks for the legal aspects, documents, valuation and location of actual property, so there are minimal chances of fraud or any legal problem.
• It is quite safe to rely on the credibility of the seller (Banks and Financial Institution).
• The possession of Auctioned property is provided in less than three months time. The ownership is assigned within one month of completing the financial requirements.
• The whole process of auction is very transparent and reliable, it is free from hidden terms and conditions

How to participate and purchase Auction Property

Step A - Read the paper notification for an Auction. Gather information required like Property address, size, Reserve price, Earnest Money Deposit (EMD), Date of inspection (DOI), Auction date, place and time, a collection point for tender form.
Step B - Collect the Tender form from the place mentioned in Auction notification
Step C - Prepare an EMD DD.
Step D- Deposit the DD along with complete tender document at designated places along with ID/Address proof (PAN, Voter ID, Bank Pass Book copy etc.).
Step E - The bidding process will commence
Step F - Participate with desired monetary bid if seems required
Step G - In case of winning bid; deposit 25% of the bid amount (including EMD) at the bank on the same day or else wait for the EMD DD to be returned.
Step H - After depositing 25% of bid money, arrange the balance amount in demand period and deposit it within time. Some bank offers loans facility for buying property at auction.
Step I - Auction Winner can now register the property in own name.

Conclusion

The idea of participating in an auction for buying a home may seem weird for many investors, but it is true that one can gain more in auction than the traditional way of buying the property. There are lots of auction consultants available in the market which helps the buyer to participate in the bidding process at nominal charges. It can further promote the buyer's interest in the auction property in the future.

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