By Melisa Ng and Tong Sze Leng | Nov 20, 2009
Mega Property Auction
Bid for choice houses, condos and land below market value.
Almost anything can be put up for auction, from gold and diamonds to machinery and property.
An auction is an event where items are sold to the highest bidders.
To participate in an auction means to bid to obtain an item.
In the 1990s when the property auction business in Malaysia was still relatively new, people were sceptical about properties to be auctioned. The perception of such properties has now changed.
Today, property auctions not only attract bidders but also investors.
Buying auction properties is not only a good choice of investment, it is also one of the best ways to hedge against inflation.
Star Property Fair
In conjunction with The Star Property Fair which will be held from Nov 27-29, the CIMB Property Mart’s panel auctioneers will host two public auction sessions on Nov 28.
The first session by Leong Auctioneers will feature several properties including a three-storey semi-detached house located off Jalan Ipoh and a vacant plot of bungalow land in Shah Alam.
The reserved price for the semi-detached house is RM1.26mil compared to its market price of RM1.4mil while the reserved price of the 32,001sq ft bungalow plot will start from RM806,400 compared to its market price of RM896,000.
Ng Chan Mau & Co recommends two properties which include a four-bedroom duplex penthouse with a reserved price of RM729,000 compared to its market price of RM900,000 and a three-bedroom flat with a reserved price of RM35,600.
* For details on properties up for auction at The Star Property Fair, visit www.cimbbank.com.my/propertymart or call the CIMB Property Mart hotline at 1300 88 0811.
CIMB Property Mart Mega Auction schedule
Date : Nov 28
Time : Noon
Auctioneer : Leong Auctioneers
Date : Nov 28
Time : 3pm
Auctioneer : Ng Chan Mau Auctioneers
CIMB Property Mart representatives will be on hand to provide free consultation. There will also be contests sponsored by CIMB Property Mart with prizes worth RM20,000 up for grabs.
CIMB Property Mart Consultation Booths, E069 - E072
TIPS
Buying an auction property
For property buyers interested in bidding at the CIMB Property Mart auction, here are 10 simple steps on how to buy an auction property.
1. Identify Identify your desired property and take note of relevant information according to your preferred location and budget.
2. Inspection Understand the state and condition of the desired property. Conduct an external inspection of the property to ascertain the condition.
3. Independent Research Conduct a thorough research with the relevant Land Office and make general enquiries with the developer or management office. You can also contact the auctioneer or the bank to get additional information about the property.
4. Registration Register your details prior to the auction. You may also register on the actual day itself before the auction. You have to get a copy of the Proclamation of Sale (POS) and Condition of Sale (COS).
5. Preparation Take note of the auction time, date and venue. Prepare a bank draft or cashier’s order for the deposit amount equivalent to either 5% or 10% of the Reserved Price before the auction date. Also, prepare additional cash on the auction day to top-up the difference on the deposit sum between the successful bidding price and the reserved price.
6. Auction Day Ensure that you reach the auction venue early and register at the auctioneer’s registration counter. If you are unable to attend the auction, fret not. You can authorise anyone who is above 18 years old to bid on your behalf. However, remember that he or she must bring along the original authorisation letter together with a photocopy of your identification card and bank draft to the auction.
7. Bidding Time The auctioneer will announce the commencement of the auction, and then provide a briefing on the bidding process. He will then read out the important clauses in the COS and the property information. After the auctioneer announces the starting price, the bidder should raise his/her bidding card to signify interest and also to indicate the bidding price.
8. Successful bidder The bidding process will stop when the highest price is called out three times by the auctioneer and no further bids can be made. At the fall of the hammer, the property is sold.
9. Signing the contract The successful bidder is required to sign the Contract of Sale and pay the remaining difference on the same day itself if there’s an increment to the successful bidding price. The balance of the purchase price must be paid within 90 days from the auction day.
10. For Unsuccessful Bidding
If you are not the successful bidder, you may redeem your bank draft or cashier’s order at the registration counter immediately after the auction.
Click here for more details on The Star's Stylish Living Property Fair
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