If you want to buy or sell a home, a public sale can be an interesting option. But what exactly does a public sale entail, how does the process work and what are the advantages and disadvantages? In this article you will discover everything you need to know about the public sale of a house or apartment.
What is a public sale?
In a public sale, your home is sold to the highest bidder. The auction usually takes place under the supervision of a notary. Anyone interested in the home can bid, which means the sale is very transparent.
A public sale is done both by attachment of a house or voluntarily.
The course
Preparation
The seller decides to sell the property through a public sale and engages a notary. The notary puts together a sales file with all the necessary documents, such as title deeds, an energy performance certificate (EPC) and information about the urban zoning.
Announcement
The public sale is announced through various channels, such as advertisements in newspapers, on real estate websites and sometimes posters at the property itself. The announcement contains essential information about the property, the date, time and location of the auction.
Viewing
Interested buyers will have the opportunity to view the property during one or more organized viewing days. This gives potential buyers the opportunity to assess the condition of the property.
Auction
On the day of the public sale, the auction takes place at the designated location, often in a notary’s office or a municipal hall. The notary leads the auction and starts with an opening bid, often based on a predetermined minimum price. Bidders can then bid against each other.
Assignment
When no more higher bids are received, the property is assigned to the highest bidder. The notary makes a record confirming the sale. The buyer usually has to pay a down payment, often 10% of the sale price.
Exit
After the auction, a deed of sale is drawn up, and the buyer must pay the remaining purchase price within a certain period of time, usually within a few months. Once full payment is made, the deed is recorded and the property officially belongs to the new owner.
Advantages
- Transparency: a public sale is a transparent process. Everyone can see how the bids are going and there is no discrimination in terms of potential buyers.
- Quick sale: the home is often sold within a short time frame, which is beneficial for sellers who want to sell quickly.
- Fair price: because multiple buyers are bidding against each other, the sale price may be higher than a traditional sale. This ensures that you get a fair market price.
Cons
- Uncertainty: for both buyers and sellers, there is a degree of uncertainty. As a buyer, you are not sure if you will have the highest bid, and as a seller, you are not sure what the final selling price will be.
- Stress: the auction process can be stressful, both for the seller and the bidders.
- Down payment: as a buyer, you often have to pay a down payment right away, which can sometimes be a stumbling block.
So a public sale can be an efficient and transparent way to buy or sell a home, but it is important to be well prepared and carefully weigh the pros and cons. That way, you can be sure you are making an informed decision in this exciting process.
Curious about other ways to sell your apartment? Find out here.
Would you like to cite this article as a source? Then use:
Luyckx, S. (2024, July 9). Public sales: the pros and cons. Apartment.be. Accessed on (date XX/XX/202X), from https://www.appartement.be/openbare-verkoop
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