In Malaysia, there are two main types of auctions for foreclosed properties: delivery of vacant possession (DVP) auctions and non-LACA auctions. DVP auctions are held by banks to dispose off residential properties that are no longer able to be sold on their own. Non-LACA auctions are conducted by the High Court. The price at which the properties are sold at the auction depends on the consumer market.
If you’re looking to buy a property at auction, it’s important to pay attention to all the details of the property’s condition. This can give you a true picture of its price and value. This can reduce the risks associated with buying auctioned properties and help you make an informed investment decision.
While many people are attracted to the idea of buying a property at an auction, it is important to be prepared for the potential pitfalls. Even if you find an incredible bargain, buying at an auction can be risky. To avoid the pitfalls, make sure you know what you’re looking for and what steps you have to take to make a purchase.
In Malaysia, property auctions are big business. Most often, they result from defaulted home loans. Usually, the bank appoints a valuer to determine the market value of the property. This figure is then used to set the selling price of the property. There is also a reserve price, which is 10% of the market value. If no one bids on the property, the reserve price is reduced by a further 10%. This process is repeated until the property is sold.