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Property auctions in Penrose condo are not just known for selling distressed properties.
They are also significant marketplaces for property buyers to find real estates at a discounted rate and strike a bargain.
Consider yourself a property investor or an opportunist? Then property auctions might provide the platform to find your “Star Buy”.
But before I get your hopes up high, please know that given the nature of Singapore’s real estate industry, you won’t be making astronomical gains just by shopping around in the auction market.
Although the gains are marginal (in a sense), it’s still worth a shot for those who don’t mind modest gains.
Let’s dive into the details of property auctions in Singapore so that you can manoeuvre your way through and potentially make some gains from it.
What Is A Property Auction?
Property auction, like every other form of sell-offs, is the public sale of properties which are sold to the highest bidder.
These auctioned properties may be residential, commercial or industrial.
Such auctions are commonly referred to as distressed sales because the owners are not able to pay off the mortgage loan and are forced to sell them.
However, in the Singapore context, it is not that common.
That said, it doesn’t mean that you can’t find any good deals from time to time.
If you’re looking to find the best property deals available, property auctions can be an excellent place to look out for sweet bargains as there’s a possibility of acquiring properties at a discounted rate – which is hardly found in our inflated economy nowadays.
Why Are Properties Put Up for Auction?
Properties are put up for auction for various reasons and are classified under distinct categories based on the profile of the seller.
The five most common types of properties made available for bidders are namely:
Sale of estate
1. Sale of Estate
Purchasing an estate from such transaction is not for the faint-hearted, and especially not for those who want a peace of mind.
This type of auction is equivalent to selling and buying a “dead man’s house” as the owner of the estate is a deceased person.
This sale is put up for auction by the representative of the deceased owner.
In the case where the deceased owner has left a will, an executor will be representing the sale of the estate.
However, if the deceased owner does not have a will, an administrator will be the representative instead.
*The difference between an executor and administrator is that an executor is nominated within the will of the deceased, while an administrator is appointed by a court to manage the estate.
2. Owner Auction
As the name suggests, such auctions are initiated by the owner.
If you’re looking to maximise your monetary gains as a property seller, this is not the path that you should take unless you know for sure that your unit is guaranteed to fetch a higher price in the auction market.
The owner puts his property up for auction for two main reasons:
1) He has been ordered by the court to give up his assets on the grounds of divorce
2) He wants to sell his property urgently, and auctioning his property is the fastest way
3. Mortgagee Sale
The mortgagee sale is initiated by the bank and the properties put up for the auction belong to a person who had previously mortgaged his estate to the bank in exchange for a loan and failed to repay the debt.
Selling off these properties to the highest bidder is the bank’s way of recovering from the bad debt that it had lent out.
4. Sheriff’s sale
A sheriff’s sale refers to the auction of properties that have been seized by the court to pay off the owner’s creditors.
In many situations, the debtors might not be able to return the money to the creditors.
Hence, the creditor requests for the seized property to be sold via auction to recover the debt.
5. Public trustee
Lastly, the Public Trustee auction is the rarest kind of property sale initiated by the Public Trustee’s Office.
They administer the estates of deceased persons where wills are not made, and beneficiaries are not appointed