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...