I start my day early today at 7.30am as I am going for a bidding at Megan Avenue 2, Jalan Yap Kwan Seng by Citibank , schedule at 11.00am
The property I am interested is LA 19. I was quite relief to find not many people at the auction room compared to the last three auction I attended. Later I discovered the reason for the smaller crowd because the auction list was shorter too.
LA 19, the unit I am interested was conducted first because have most number of bidders, around 10 bidders and the reserved price of RM230K was revised up to RM280K, way exceeding my target price of RM250K. To my horror after the fall of the hammer LA 19 was sold at RM335K to a chinese bidder.
Assuming I am the successful bidder at RM250K, from my perspective it is not a fantastic bargain, taking into consideration:
1) This property is more than 10 years and still under mastertitle as developer is under liquidation
2) Only one bank out of 4 banks, including auctioneer bank I enquired for loan, entertain such property, . This particular bank agreed to process my application, because of my networking of knowing the officer and out of goodwill the officer managed to check out from the bank panel lawyer which bank does not required quit rent receipt for drawdown.
3) Liquidator charges 1% of transacted price as administration fee for consent beside other hidden cost.
4) From my calling to agent from the signage of property for sale few doors away, the willing buyer willing seller price is only around RM300K and there were many abandon houses too.
5) Owner still stay put at this property, may have problem in taking vacant possession.
LA18, is even ridiculous, less bidder compared to LA19, but there were three very very serious bidder of dying to win the bid. Reserved price of RM198K was revised up to RM210K. At the fall of the hammer,LA 18 was sold for RM288K, way above the estimated market value of RM220K. to a chinese lady. The malay couple bidder sitting next to me, then whisper, "ini rumah ong ke!"..me smiling back "ong tak payah kena lelong".
LA 21, was sold at reserved price of RM8,858/- to a sole bidder. CONGRATULATION to that young malay guy. This is what I called AUCTION PRICE. Bought my first property 6 years ago through auction too, at 15% below market price, but then it is a newly completed house with remaining 6 months warranty period for defect by developer. I wonder do bidders read the condition of sale of auction property !
talk-talk only : WHAT IS CHEAP IS ONLY A PERCEPTION.
//:www. realtor-at-work.blogspot.com
27 August, 2013
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