Commercial Real Estate Auctions: Tips & Strategies to Acquire a Good Property

 

One of the easiest ways to find and acquire authentic commercial real estate properties for investment or business use is to participate in bank auctions. The banks conduct such auctions to recover capital from the market by selling non-performing assets (NPAs).

Source: Statista Research Department

“The market size of the real estate industry in India was valued at around 120 billion U.S. dollars in 2017 and is estimated to reach one trillion dollars by 2030. In 2022, over 2.5 billion U.S. dollars’ worth of investments were expected in this sector across the country.”



These assets are kept as mortgages to get loans from banks and financial institutions. When borrowers cannot pay back the loan amount, they are considered defaulters, and the lender becomes the owner of the mortgage assets as per the SARFAESI Act, 2002. The bank then conducts a property or land auction to attract potential buyers.

Tips for buying auction properties

Buying commercial properties has its risk. A buyer will have to perform his due diligence and check whether a promising property is not attached to any liabilities or not. A property or land auction conducted by banks can be the best bet.

Here is a list of tips an interested buyer should follow to acquire a commercial property.

1.                 Check online auction portals

The first step is to go online and check the digital auction portals for promising auctions by banks and financial institutions. These portals cater to a consolidated platform where the information regarding auctions conducted by the leading public sector banks and financial institutions is displayed.

You will get a clear idea of the commercial bank E-auction property available in particular locations. These portals are the best gateway to finding such authentic properties at once. It is optional to indulge in visiting banks' official websites to seek such information.

2.                 Be ready with the earnest money deposit (EMD)

Remember, you must register in an e-auction portal to participate in such events. Such events are catered nationwide, and interested buyers register on such portals. After checking the reserve price of properties, an EMD has to be deposited to get recognized as an eligible bidder. Once the bid opens, you can place your cost and make necessary changes accordingly.

3.                 Deposit after winning the bid

If you win a bid, you will have to deposit an amount of as much as 25% of the reserve price of a commercial auction property. It needs to be done within the stipulated time fixed by the auctioneer.

4.                 Seek professional assistance

Many bidders need to be aware that E-auction service providers offer professional assistance to them in exchange for a nominal service charge. Seeking such services make registering in the portal, arranging EMD, booking deposit, and bidding much more effortless. Get a competitive edge by availing of such professional services.

5.                 Property authentication

Even though a bank E-auction property gets authenticated by an auctioneer and the e-auction portal service provider, perform your due diligence and then make a move.

Verdict

Remember these tips and tricks to successfully own a commercial auction property from a bank or a financial institution. This way, you can acquire and invest in commercial properties at a reasonable price and make significant progress in real estate investments.

To bid on the latest commercial properties, click here, https://www.auctionbazaar.com/auction-properties?start_from=asset-type&asset_type=commercial. 

 

Comments

Post a Comment

Popular posts from this blog

Simple Guide to Buying an Auction Property

Image
Banks and financial institutions construct financial tools to help people with monetary resources. Such financial tools often come with mortgage plans to secure the money disbursed to a borrower by a lender. In certain circumstances, it seldom happens that a borrower fails to pay back the loan amount and is considered a defaulter. The banks use mortgaged properties as capital recovery tools. They are auctioned in the market to attract interested buyers. If you are interested in buying authentic and profitable bank auction properties for sale , follow the simple guidelines described below. Guide to bank auction property buying The digitization of the auctions of non-performing assets (NPAs) has made it easier for interested buyers like you. Previously, one has to enter and scout the websites of the asset reconstruction companies (ARCs) and check for promising properties to be auctioned. Now is the time when you can only focus on the digital portals that cater to delivering t...
Read more

E - Auctions Are a Growing Trend for buying residential, commercial, and Industrial properties

Image
Imagine looking for a residential property in a preferred location in a city. You get to know that a bank is selling its non-performing assets (NPAs) or mortgaged assets at a price lower than the market. The bank already authenticates the property. How excellent can this way of investing in real estate be? Source: (technavio.com) “ The online auction market share is expected to increase by USD 1.90 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 9.7%. ” Previously, banks and financial institutions often conducted auctions physically, and the information with all the details used to come in the newspaper. These days, an E-auction portal spreads the news to interested buyers throughout the country. Hence, seeking information related to property auctions has become much more manageable. Why are E-auctions a growing trend? An e-auction is a process conducted in a digital portal where the auctioneers enlist the assets for online b...
Read more

Everything you need to know about SARFAESI Act 2002

Image
India's banking and financial sector is the prime pillar of our economy. It is taking unprecedented steps to make India a strong economy and establish it on the world map. The banks and financial companies are strengthening our country by providing financial support to the people. In some cases, borrowers who seek financial assistance from the banks fail to pay back the loan amount, causing a massive gap in the capital gained and lost in the market. The recovery of defaulting loans became an enormous issue for financial institutions and banks. To overcome this situation and to recover loans, the SARFAESI Act got constituted.   Let us understand this Act in detail. The main goal of this Act is to make a rapid recovery for NPAs. It also lets banks or financial organizations auction the borrowers' acquisitions if they fail in loan repayment. What is SARFAESI Act 2002? The Andhyarujina Committee and Narasimhan Committee I and II were the ones to construct this act. The ...
Read more