Before auction, the bank will always engage a registered valuer to value the property as at Open Market Value (OMV) and also Forced Sale Value. As a rule of thumb and a rough guide, a Forced Sale value is normally 10% to 15% lower than OMV.

The first auction will normally start using the OMV as the reserve price, in other words, the auctioneer will first attempt to sell the property using open market value, if unsold, then only the price will start going down. In the case of Laca cases (i.e. properties without individual titles ), the reserve price is going down almost every month by approximately 5% to 10% from previous auction.

Low pricing is normally the major attract for auction properties, however, other issues such as condition of the property, previous owings and vacant possession should also be taken into consideration whenever you want to bid at the auction. Please also refer to my previous articles on Property Auction.



P.S. I really want to know if anyone finds my articles useful, so feel free to leave your comment/questions at my blog HERE

===============================================================

ABOUT THE AUTHOR: Lim Boon Ping, Registered Estate Agent (E 1690), was elected as the Chairman of Malaysian Institute of Estate Agents Johor Branch since 2004 until now. He is currently employed as General Manager under Tiram Realty, an established real estate agency of over 20 years history in Johor. To get instant access to all his valuable tips and advice on Malaysia's real estate matters, visit: http://www.tiramrealty.com.my and http://www.blog.tiramrealty.com.my

年费价值RM147的房地产电子杂志现在完全免费! 名额有限,请立即行动 !
Get Real Estate Tips and Advice Newsletter Worth RM 147/year for FREE!
Click HERE for EASY Sign-UP!
=======================================================

This post has been edited by limboonsiang: Jun 7 2007, 12:38 PM

are you Lim Boon Ping's brother or son?

here again to sell service....

I think he's more of promoting his blog. At least he got contribute some info in this forum.

forced sell can go as low as 30% off market value..
the trick is, get it before it reaches that stage..
i speak from experience.

****text censored ****

This post has been edited by limboonsiang: Jun 8 2007, 12:40 AM

It is cheap but u r not the only bidder unless u r lucky... the price of the auction is always below market price.. however there always many properties agent as a bidder...

I think if the property is good one, sure snap up by bank employee oredi. Left oni the unwanted one usually for auction lor.

that explains why 99% of the auction properties I see on the classified belonged to one or both of the categories before (almost NEVER seen landed ones too)

- low cost flat/apartment
- poor location/outskirts

Mostly the apartment, condo, flat will auction at auctioneer office.. for those landed property with master tittle will be auction at high court or land office.

for cheap auction unit, sure got alot bidders.. but, can be settle or negotiate before the auction. example, Rm100k bidding price. market is Rm150k. if got 3 bidders, can offer to them Rm1000-2000 per person. so, u still can get a cheap property.

dont forget property gain tax has waive from goverment since April 2007
goverment stamp duty also will be waive soon....