Some pros and cons of auctions in Malaysia

Pros

1.Auction prices are normally lower than market value. Under normal circumstances, the price will reduce 10 per cent from the previous reserve price if nobody turns up to bid for the property. Sometimes, the property price can be as low as 30 per cent below the market value.

2.Free legal fees on the Sale & Purchase (S&P) agreement.

3.Auction property purchased through the Land office or High Court will be free from restrictions in interest.

4.All outstanding maintenance charges and other statutory charges will be deducted from the auction price.
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Cons

1.Buyers require cash in hand, in case they cannot get mortgage loans from banks to settle the balance purchase price within 90 days or 120 days, with no extension allowed.