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Property Auctions - Making a Killing.
Rank: Member Joined: 11/15/2006 Posts: 44
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The deals are awesome but I hear the problem is everything is already sold by the time of auction. The newspaper publishing advertising an auction is for legal purposes. The auctioneers have already lined up buyers and sold to their pals (one imagines at a higher rate than the bank/gov will officially ever hear about). I am sure it is still a deal. I heard this was how guys would buy cars not paid tax on for throw away prices (range rovers for 1 M was the price I heard with the story). the bottom line is you have to know someone.
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Rank: Member Joined: 11/11/2006 Posts: 60
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I would not touch an auctioned property,but,I'll seek out the owner and make a deal instead.
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Rank: Member Joined: 11/15/2006 Posts: 44
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there have been many cases where guys had to go to court for the right to sell 'their' property. this is so as to get a decent price for their sweat. at that point in time ownership has already gone to the bank who sell the debt to a collection agency. the former owner usually has no say in the matter
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Rank: Member Joined: 1/26/2009 Posts: 45
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Be very careful with these auctions. many auctioneers do not follow the law to the letter,say by not serving notices as requied by law. this obviously leaves the property owner with grounds to challenge the legallity of the sale. If he/she is not able te serve the auctioneer with an injuction before auction date,you,the buyer,will go through hell to transfer the property. It is also true that newspaper adverts are usually just a formality. wanunuzi are known well before the auction. Safest way,strike deal with owner,auctioneer and if possible,bank too.
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Rank: Veteran Joined: 9/5/2007 Posts: 627
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Amazing the amount of misinformation is out there regarding this issue.
It is a legal requirement to advertise in a local daily the date, time and location of the auction. It is not a formality!
An auctioneer can set a reserve price but he must inform all attendants of the auction of the reserve price before the commencement of the auction.
@pops: What you're saying may be true, but like Kaigangio has asked, what do you do when someone else bids a higher figure than what was agreed?
Also, if you are a shrewd and careful business man, you sure would do your own background before buying a property! Check whether all requirements have been satisfied, check that the property has a clean title, check that the auctioneer has possession of all title documents (logbooks and title deeds), and be careful where the auctioneer says that the 'seller has the right to bid'!Immorality: The morality of those who are having a better time!
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Rank: Chief Joined: 1/3/2007 Posts: 18,371 Location: Nairobi
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Have a fixed upper limit and do not breach it. So if the seller bids higher than the limit,let the seller buy it! Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Member Joined: 3/23/2007 Posts: 127
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would not call it mis-info… we are talking substance over form… its ok to follow the legal form…ad in the paper etc… but the substance of an auction is that there is rampant corruption… I attended several back in the day… mostly furniture and household stuff… those things are rigged from top to bottom… in addition to what others have said… a guy on the inside scans the crowd for newbies… when you bid he also bids… in the heat of the moment… you end up paying a ridiculous price… or the sale is rejected on some flimsy grounds… ati did not meet reserve price... haven't you noticed how thugish those auctioneers look
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Rank: Member Joined: 3/19/2009 Posts: 29
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That's why I love this website. Bright people I can exchange ideas with. About this auctions,I think another prerequisite to buying a house (even if it's for resale) would be to make sure u only buy one that the former owner has been kicked out already. It's okay if it's rented to a tenant,but If the house is vacant,that's even better...and makes for easier fighting if u have to go to court. Regarding conciense,it doesn't bother me at all. 'Business is business' - as Jimmy Kanja (late tycoon owner of JayKays) said.
Pops,it sounds like a good idea to see the auctioneer for some back dealing - and Kaigangio,obviously one wouldn't give the auctioneer cash before actually buying the property. You have to be awarded the legal buyer status,before forking over $$$ to the auctioneer.
3rdly, I would only buy for purposes of reselling at a profit. Reason is,I want to sleep well at night,not worrying about the former owner hiring sungusungu on poor me.
'All they see is my glory...they don't know my pain. Nothing good comes easy in life.' - Multibillionaire Nelson Muguku Njoroge
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Rank: Member Joined: 11/11/2006 Posts: 60
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Formalities in auctions are mere facades,ANY auctioneer can get you any property at agreed price,if you want to go out there and bid blindly shauri yako ... at times auctioneers/banks want to unload everything to the buyer including legal fights with the former owner,at times,what may look like a deal may turn out to be a nightmare ...
I will ONLY make a deal with BANK,AUCTIONEER and the OWNER.
Also,when ones property is reposessed,things can get very vindictive,and you do NOT want to conduct your dealings that way nor do you want to live that kind of live looking over your shoulders for the wrath of those that lost the property ... you want to dispense a bit of justice and give the previou owner something for his sweat ... if you follow this model,you're bound to meet lots of success,do not grossly take advantage,its wrong regardless of it being legal.
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Rank: Member Joined: 9/7/2007 Posts: 168 Location: Nairobi
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Let me put it philosophically.
Auction,differently viewed is simply an act of bargaining. Only this time the vendor quotes not,but buyers determine the price.
Each buyer silently negotiates based on the power of his pocket and the mentally perceived acceptable value derivable from the object of auction as well as his/her willingness to acquire it.
Devoid of the context within which an auction is procured,it is simply a willing buyer willing seller engagement; period.
Put in the context; and you begin to have conscience problems with the purity of engaging oneself.
To him/her that it is right,it is,and to him that it is not,so it shall remain. It is all in the mind; you can choose to compartmentalize that part of you that says,“See no evil,say no evil,hear no evil,touch no evil”.
Otherwise,see no evil,say no evil,hear no evil,touch no evil.
say it as it is
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