Why buy real estate at auctions?

Real estate auctions, notarial or judicial, allow anyone who wants to buy property that is available on the market (sold by the owner voluntarily or forcibly by a court order). For French companies, auctions have significant advantages. What are the methods of purchasing real estate at auction? What are the notable benefits for participating companies? Explanation.

Various auctions

1) Notarial auction

There is a notarial auction classic auction. When the owner finds it difficult to sell his property, he can ask the notary to organize an auction. Next comes the auction strict rules:

  • The individual selling the property must sign the check 20% the price of the notary is closed;
  • Competitors who wish to outbid an offer made during the auction have 10 official days after the sale to make a new offer (minimum overbid of 10% of the winning sale price). After this time and without bidding, the sale is official.
  • The 45 days delay to pay the maximum amount of the property sold at the auction.

2) State auction

There are real estate auctions organized by the French state. This is real estate without heirs, for the most part. These accommodations, wines heirs of the inheritance, become the property of the state, which can then sell them at an auction at unbeatable prices. However, it should be noted that these properties are regular in distress (or at least average) due to lack of buyers.

Upon completion of the sale, the buyer must:

  • Pay the amount of the bid within thirty days, if it is worth 15,000 euros;
  • Pay for properties in two stages at auctions from €15,000 to €76,000. The first payment (1/3 of the amount), the first thirty days and the second payment (2/3), after two months;
  • Current interest rates apply to the amount due;
  • Notary fees are not paid;
  • The title deed is issued free of charge.

3) Judicial auction

A judicial auction is a sale called ” forced “. This follows from seizure of property due to unpaid debt or excessive debt. Thus, companies wishing to invest in real estate sold at auction must:

  • be represented by a lawyer the day of the sale at the Tribunal de Grande Instance (TGI);
  • Visit once (in one hour) property for auction, under the supervision of a bailiff;
  • pay in kind within 60 days.

Advantages of real estate auctions

Real estate auctions have advantages for buyers, particularly companies.

National auction sites: saving time

Companies looking to buy real estate can visit the Vench real estate auction site and view all the offers available across the country.

These sites have an advantage be able to very specifically describe the property desired by the company : commercial premises, office building, warehouse, apartment, shop, etc.

This saves the time of the company, which receives real-time information about market opportunities, days of the visit, and the date of the planned sale.

Real estate auctions: investing at a lower price

In general, the auction provides an opportunity benefit from real estate 15-30% cheaper than the market value.
For companies looking to invest in commercial space or set up an SCPI, for example, this price reduction is a bargain! In particular, it makes it possible to meet the needs of companies in larger offices and warehouses without investing large costs.

Court auctions seem to be the most interesting because reset prices are set at 30% less than the actual market price.

Real estate auction: enhancing your brand image

Auctions are often the way to go discover rare or even spectacular real estate. This is especially true during estate auctions, when no heir can be sad in the context of inheritance. In this way, a company looking for real estate to invest, host its teams or meet the needs of its activities (opening a shop, public reception, opening a restaurant, etc.) can benefit from an original location that it could not afford through a traditional sale.

Appreciating the brand, you should take advantage of this opportunity! Real estate objects located in large cities can be within reach of professional investors who will then take advantage of the cultural influence of the municipality to open their businesses there.

Auctions, reliably

Auctions are safe because under the strict supervision of legal and real estate specialists (lawyer, notary, etc.). For the company, this is a reliable, safe investment, which allows considering the development of its activities in the long term.

Therefore, real estate auctions bring advantages to companies that want to invest in stone. Whether to meet specific needs related to the company’s activities or to monitor its development, auctions, regardless of their nature, are an option to consider.

For more information, find the following real estate auctions: https://www.vench.fr/prochaines-ventes-aux-encheres.html

(Photo: iStock)

The author of the article

Writer

This text is published under the responsibility of its author. Its content in no way implicates the editors of Les Echos Solutions.