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Buying Land / House from Auction
josimar
#1 Posted : Thursday, February 13, 2014 2:08:59 PM
Rank: Member


Joined: 7/6/2010
Posts: 242
Each week there are always adverts of land and houses being auctioned and I hear one can make a purchase at good price. After one has purchase how peaceful is transfer of property to new owner? Any one here who has been in this before and made a purchase from the auction ?
MaichBlack
#2 Posted : Thursday, February 13, 2014 6:29:15 PM
Rank: Elder


Joined: 7/22/2009
Posts: 7,452
josimar wrote:
Each week there are always adverts of land and houses being auctioned and I hear one can make a purchase at good price. After one has purchase how peaceful is transfer of property to new owner? Any one here who has been in this before and made a purchase from the auction ?

Imagine you have saved for years and bought a plot. Then saved for many other years and built yourself a house. Then you spent your time and money for the next couple of years putting "final touches" to the house. Then you take out a loan and you actually paid back most of it [or all of it as far as you are concerned]. But from the banks calculations you owe so much plus fines and other funny costs!!! But your house is worth FAR much more than that in any case. Probably at one point you even offered to pay off the amount but the auctioneer either could not hear any of it, or started adding some other funny cost or took you in circles etc.! Then a fellow - who for all you know might in bed with the bank - is sold your house at a throw away price!!!

How peaceful would be the rest of the process.

Personally I don't buy auction stuff. It's a moral issue [which some might challenge - but I stand by it]. I never want to benefit from someone else's misfortune. Some might say some people take loans and waste the money and then refuse to pay back even though they can afford to. But there are others who are being screwed over!!! I don't have the resources to investigate the history so I give everyone the benefit of doubt and stay away from their property. I know someone else will always buy, but it will never be me!!!
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
Gordon Gekko
#3 Posted : Thursday, February 13, 2014 7:51:18 PM
Rank: Elder


Joined: 5/27/2008
Posts: 3,760
c&p

According to the Land Act (2012), clients who owe financial lenders outstanding loans have a sigh of relief before their property is sold off.
According to the new law, commercial banks, mortgage firms and other financial institutions will no longer auction property without involving the defaulters directly.
For starters, the new law compels the lenders to sell property of a defaulter at the highest market value.
Gathige
#4 Posted : Friday, February 14, 2014 6:39:45 AM
Rank: Elder


Joined: 3/29/2011
Posts: 2,242
@MaichBlack, i Concur. Watching a family being kicked out by goons hired by auctioneers to pave way for the "new owner" can be haunting for the rest of the life. I remember watching one sickly Paul Ngei being kicked our of his house and the image has forever refused to leave my mind.
"Things that matter most must never be at the mercy of things that matter least." Goethe
willin2learn
#5 Posted : Monday, February 17, 2014 11:48:16 AM
Rank: Veteran


Joined: 2/12/2008
Posts: 1,178
MaichBlack wrote:
josimar wrote:
Each week there are always adverts of land and houses being auctioned and I hear one can make a purchase at good price. After one has purchase how peaceful is transfer of property to new owner? Any one here who has been in this before and made a purchase from the auction ?

Imagine you have saved for years and bought a plot. Then saved for many other years and built yourself a house. Then you spent your time and money for the next couple of years putting "final touches" to the house. Then you take out a loan and you actually paid back most of it [or all of it as far as you are concerned]. But from the banks calculations you owe so much plus fines and other funny costs!!! But your house is worth FAR much more than that in any case. Probably at one point you even offered to pay off the amount but the auctioneer either could not hear any of it, or started adding some other funny cost or took you in circles etc.! Then a fellow - who for all you know might in bed with the bank - is sold your house at a throw away price!!!

How peaceful would be the rest of the process.

Personally I don't buy auction stuff. It's a moral issue [which some might challenge - but I stand by it]. I never want to benefit from someone else's misfortune. Some might say some people take loans and waste the money and then refuse to pay back even though they can afford to. But there are others who are being screwed over!!! I don't have the resources to investigate the history so I give everyone the benefit of doubt and stay away from their property. I know someone else will always buy, but it will never be me!!!


From previous experience, i learned that by the time the property is auctioned, the owner would ordinarily have proved incapable of repaying the outstanding debt and also unwilling to sell off the property him/herself and pay off the outstanding debt. Auction process has very high costs to the lender and most of the institutions would rather not go that route.

JkMwatha
#6 Posted : Monday, February 17, 2014 2:47:06 PM
Rank: Veteran


Joined: 9/11/2007
Posts: 816
josimar wrote:
Each week there are always adverts of land and houses being auctioned and I hear one can make a purchase at good price. After one has purchase how peaceful is transfer of property to new owner? Any one here who has been in this before and made a purchase from the auction ?



@josimar, There are some cracking deals to be found with property auctions. It is a matter of choice. its not exactly for the faint hearted.
A 'friend' acquired a property around Kyuna/Loresho for 55 million or there about. It was valued at over 80 million.
It was a peaceful transfer, but having concerns about any repercussions, he passed it on to an agent to manage and rent it out for a while.
The property is currently still managed by the agent, but he has the intention of eventually living there.
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