Consider purchasing a home at a bank auction as an alternative to buying a house with a mortgage. Explore the advantages and methods of acquiring a bank auction property below.
Sumber: Photo by Joss Woodhead on Unsplash
Owning a house is a common dream for many people. Much information is available about buying and owning a home, as well as attractive offers from housing agents and financial institutions, which can help many people achieve their dream of owning a home more quickly.
One option not widely used to own a home is buying a bank auction house. A bank auction house can be an alternative for those who want to own a private residence but don't have a lot of funds.
The bank confiscated a bank auction house and resold it at a lower price than the general market price. Many well-informed investors often participate in hunting for auction houses for long-term investment.
So, how can you find information about house auctions, how to participate, and how to acquire the house you want? Here are some tips that can help:
One option not widely used to own a home is buying a bank auction house. A bank auction house can be an alternative for those who want to own a private residence but don't have a lot of funds.
The bank confiscated a bank auction house and resold it at a lower price than the general market price. Many well-informed investors often participate in hunting for auction houses for long-term investment.
So, how can you find information about house auctions, how to participate, and how to acquire the house you want? Here are some tips that can help:
1. How to Find Information
Sumber: Photo by Andrew Neel on Unsplash
Many websites provide information about auction houses, such as lelang.go.id, which belongs to the Directorate General of State Assets (DJKN), Balai Lelang Star, and Info Lelang BRI. Sometimes, information about auction houses is also available in print media. The more you compare information about auction houses, the better your chances of finding a home that fits your budget.
2. Get to know the procedures for house auctions
Sumber: Photo by Harper van Mourik on Unsplash
Recognize the characteristics of auction houses that usually have a sign or label "Under Bank Supervision." Then, make sure to check directly with the relevant bank. Collect information regarding the auction schedule, auction code, bid price, amount of security deposit, contact person, and required documents.
3. Check Physical Condition & Investigate Ownership History
Check the location of the auction house to find out the market price in that area. When visiting the auction house, ensure previous residents no longer occupy the house. Usually, you shouldn't inspect the auction house until you enter it, so make sure the house is available. After that, also check the ownership background of the auction house in case the previous owner takes legal action.
4. Prepare funds for the auction house
Sumber: Photo by Nolan Issac on Unsplash
Note that the auction house must be paid for in cash. Interested persons must prepare a deposit of 20% to 50% of the auction price.
If you lose the auction, the deposit will be returned. If successful and the price is accepted, you must pay for the auction house purchase within five working days. Further costs must be prepared, including Land and Building Rights Acquisition Fees (BPHTB), income tax, name change, and notary fees.
If you lose the auction, the deposit will be returned. If successful and the price is accepted, you must pay for the auction house purchase within five working days. Further costs must be prepared, including Land and Building Rights Acquisition Fees (BPHTB), income tax, name change, and notary fees.
5. Important Letters & Documents
Sumber: Photo by BuyandRent Homes on Unsplash
After successfully securing the auction house, the buyer will receive auction minutes from the State Property and Auction Service Office (KPKNL). The minutes will be exchanged for the original house certificate, a letter of intent from the bank, a participation certificate, and other documents. These documents must be taken to the National Land Agency (BPN) to change the homeowner's name.
After understanding the various procedures for acquiring a house through auction, you can start preparing funds and diligently looking for as much information as possible. It is important to remember that purchasing a home through auction also entails risks, such as the possibility that the bank will not allow an inspection of a property with auction status. After considering these potential risks, prepare yourself mentally for the competitive auction process. Are you interested in purchasing a bank auction house?
After understanding the various procedures for acquiring a house through auction, you can start preparing funds and diligently looking for as much information as possible. It is important to remember that purchasing a home through auction also entails risks, such as the possibility that the bank will not allow an inspection of a property with auction status. After considering these potential risks, prepare yourself mentally for the competitive auction process. Are you interested in purchasing a bank auction house?
