It is a short-lived property with a reasonable price.But it's not all good news.Liability for non-compliance with the contract is exempted, so if defects or troubles are found after purchase, the buyer will be responsible for repairing them.In the first place, it is a property that failed to operate and was abandoned, so even if it is in good condition, it is not recommended to buy it as a first property.You should get used to real estate investment before you start.This time, we will explain the explanation of the voluntary sale property and the points to be careful about.
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Difference between Voluntary Sale Property and Auction Property
If you fail to manage the property and cannot pay the loan, you have to sell the property and use it to repay the remaining debt.At that time, the property will be sold either by voluntary sale or auction.Auction refers to the forced sale of real property owned by the debtor by the creditor petitioning the court to sell it.At auctions, it is difficult to see the inside of the house, and since the bidding period is short and there is no time to inspect the property, it is risky for the buyer to know until he/she buys it, and the selling cost is 70 to 80% of the market price. tends to be low.
In addition, there is no merit for the debtor because the auction cost is included in the borrowed money as a late payment fee and it may be announced on the Internet and known to the neighborhood, so basically most people choose a voluntary sale.
A voluntary sale is the same as a normal sale, except that you will pay the remaining debt after the sale.Compared to an auction, the property can be sold at a nearer market price (sold at a higher price than at an auction), and in contract and surrender, the seller can equally assert his/her wishes. I don't understand.It means that the property you liked happened to be an arbitrary sale property.
Advantages and disadvantages of voluntary sale properties
The merit of the voluntary sale property is that it is available at 10-20% cheaper than the market price.Other than that, it is the same as a normal property, and it can be said that there are many cases where the disadvantages outweigh the disadvantages.As a disadvantage, since the liability for non-conformity with the contract is exempted, if hidden defects such as rain leaks and termites are found, or if some kind of trouble occurs, the buyer may have to carry out repair work as the responsibility of the buyer. It means responsibility.Also, even if the seller wants to sell it quickly, it is difficult to get a discount negotiation because it is convenient for the seller and the creditor's repayment plan.And it can be said that it takes more time than usual to proceed while confirming the sales contract in detail with the debtor.There are many cases where there are troubles due to leftover figurines that cannot be disposed of, so there is a reason why they are cheaper than the market price.If you don't have a good eye for the good and bad of the property, you may end up doing the same thing as the previous owner.It is also possible to buy an auction property with a real estate loan, but since it is a property that has failed once, it can be said that the demerit is that the examination takes longer than usual and is likely to be conducted more strictly.
Related article:Voluntary sale?Unsold?What is the point to purchase a property for real estate investment as cheaply as possible?
Points to be aware of when selling a property
First, let's check the management status of the property.In the first place, it is a property that failed to operate, so there are many cases where management fees and repair reserves are overdue.Also, be sure to check if there is a mortgage.Mortgage is the right to take real estate as collateral by a financial institution or a guarantee company as a mortgage holder in the event that a financial institution fails to make a loan payment.After purchase, it is easy to cause trouble with rights, so check whether it has been deleted.If the financial institution is satisfied with the voluntary sale, it should cancel the mortgage, so it is important to understand how far the story is progressing between the seller and the financial institution.It is also important to check whether the auction or foreclosure has been withdrawn.If you do not suspend the auction, the transaction will go to auction even though the transaction was progressing, and if you have already paid the deposit, it will be the source of trouble.
Summary
The points to be aware of in order not to fail in any property for sale are…
- You can get it about 20% cheaper than the market price, but there is a reason why it is cheap
- Due to the repayment plans of the seller and creditors, discounts may be more difficult than usual.
- It is important to have an eye to see the property so that it will not cause trouble later as it will be exempt from liability for defects.
- Also check for mortgages
- Check to see if an auction or foreclosure is in progress before proceeding with the transaction.
At Rich Road Co., Ltd., we will consistently support all aspects of investment real estate, from complete beginners to experienced people, from a wide range of real estate selection, loan consultations, post-purchase management, and renovations.
