How to buy a 3-bedroom apartment at 2 BHK prices: Secrets of stressed properties

livemint.com:

property prices can jump beyond your estimates during the auctioning process, especially if there is interest from multiple parties. Since the auctioneer will demand the entire bid amount within 2 to 3 weeks of locking the deal, you are perforce required to set aside adequate funds for the auction purchase.  Generally, loan funds will be hard to come by at the time of purchase; however, a loan against the property (LAP) can be availed once the transfer of property in your name is duly concluded.  Failure to pay the entire purchase price may lead to a substantial forfeiture i.e.

25% of the value, being 10% Earnest Money Deposit (EMD), along with a further 15% required to be paid on bidding day.  Also Read: How to obtain a Dubai Golden Visa through real estate investment Getting a bargain deal in your first-ever auction is almost impossible. Your patience will be tested for sure.

Distressed property auctions are not for you if you’re in a hurry, or if there is an immediate requirement for a habitat.  For a listed distressed property, it is absolutely essential to cross-verify the owner details, investigate the locality and surroundings, accessibility to essential services, etc. A know-how of recent real estate transactions in the neighbourhood and prevailing circle rates can provide you a start-point for a realistic value of the property.  Visiting the designated property, and talking to the local dwellers is another important exercise as it will help ascertain the quality of life, availability of services, proportion of residential units in that particular neighbourhood.