The deals are awesome but I hear the problem is everything is already sold by the time of auction. The newspaper publishing advertising an auction is for legal purposes. The auctioneers have already lined up buyers and sold to their pals (one imagines at a higher rate than the bank/gov will officially ever hear about). I am sure it is still a deal. I heard this was how guys would buy cars not paid tax on for throw away prices (range rovers for 1 M was the price I heard with the story). the bottom line is you have to know someone.

there have been many cases where guys had to go to court for the right to sell 'their' property. this is so as to get a decent price for their sweat. at that point in time ownership has already gone to the bank who sell the debt to a collection agency. the former owner usually has no say in the matter

Amazing the amount of misinformation is out there regarding this issue.

It is a legal requirement to advertise in a local daily the date, time and location of the auction. It is not a formality!

An auctioneer can set a reserve price but he must inform all attendants of the auction of the reserve price before the commencement of the auction.

@pops: What you're saying may be true, but like Kaigangio has asked, what do you do when someone else bids a higher figure than what was agreed?

Also, if you are a shrewd and careful business man, you sure would do your own background before buying a property! Check whether all requirements have been satisfied, check that the property has a clean title, check that the auctioneer has possession of all title documents (logbooks and title deeds), and be careful where the auctioneer says that the 'seller has the right to bid'!Immorality: The morality of those who are having a better time!

would not call it mis-info… we are talking substance over form… its ok to follow the legal form…ad in the paper etc… but the substance of an auction is that there is rampant corruption… I attended several back in the day… mostly furniture and household stuff… those things are rigged from top to bottom… in addition to what others have said… a guy on the inside scans the crowd for newbies… when you bid he also bids… in the heat of the moment… you end up paying a ridiculous price… or the sale is rejected on some flimsy grounds… ati did not meet reserve price... haven't you noticed how thugish those auctioneers look

Formalities in auctions are mere facades,ANY auctioneer can get you any property at agreed price,if you want to go out there and bid blindly shauri yako ... at times auctioneers/banks want to unload everything to the buyer including legal fights with the former owner,at times,what may look like a deal may turn out to be a nightmare ...

I will ONLY make a deal with BANK,AUCTIONEER and the OWNER.

Also,when ones property is reposessed,things can get very vindictive,and you do NOT want to conduct your dealings that way nor do you want to live that kind of live looking over your shoulders for the wrath of those that lost the property ... you want to dispense a bit of justice and give the previou owner something for his sweat ... if you follow this model,you're bound to meet lots of success,do not grossly take advantage,its wrong regardless of it being legal.

hi all since quite a few of u have asked let me explain how this game works. say u r interested in a property with a market value of 5m. u got to the auctioneer and negotiate to 4.7m. the auctioneer will then ask u to pay him 2m upfront which is not recorded in the books or no one will be aware about. the balance of 2.7m is then what u will go nd bid for at the auction. at the auction the auctioneer will make sure that the bid numbers are alloted to his stooges only,so no one will try to out bid u. its all stage managed. u will start bidding at say 2m till u get to 2.7m which is the required figure. the hammer will fall then nd u get the property. people around will feel that u got a bargain at 2.7m,not realising that u have paid 4.7m in total. within the 2m paid to the autioneer,the bank personnel who gives the auctioneer this work gets a cut as well. so every one is happy! think about it with the current demand of property in nairobi who is going to sell a property below its market value? ethical or not i think this system applies to most auctions,so if u want to buy a property go see the auctioneer well before things are advertised in the paper. also note that the auctioneer will be inclined to sell to the person who pays him the most,so make a good offer to him. he will then make sure that the balance bid price will be low.

On the same breath,can someone shed light on what would happen if someone fails to raise the full amount at the fall of the hammer or after the allowed pay period,or someone looses interest in the property after successfully bidding.

@ pops,you want to tell me that I give someone 2M without documentation or formal agreement? In these days and times in Kenya? He is not your kin?

Whatever you smoked after breakfast is not working,change to a stronger stuff
The definition of your enemy is: 'Your former friend'

Ok pops. So what happens when as per your example, someone bids 2.8 million? The auctioneer cannot decline that bid! Who's to say that out of the alloted slots someone who can scuttle your plans with the auctioneer will not enter the auction? Too risky if I may say!

@kanyimwa

If the successful bidder cannot raise the cash as required by the auctioneer, if the auction was cash on the fall of the hammer, the second highest bid is accepted. Of course this is left to the discretion of the auctioneer and the outcome can vary. Some auctioneers will use the bid that was unsuccessful as the guideline price and anyone who bids higher wins the bid.



Immorality: The morality of those who are having a better time!

Forgive my ignorance on this issue but don,t you think that if auction prices are that low the owners of the same property being auctioned would but the same property say using a proxy.

gtiinc

A point of correction Garam asks for 25% at the fall not 10% for properties.


Want to be a millionaire.... plant a million cabbages and sell them at a bob...