What is an auction house? Is it risky to buy it?

Legal auction house is a house that the secured property owner can't repay on time through bidding or auction by the bank or the court. Compared with ordinary second-hand houses, the price of auction houses is often lower than the market price, so many people think it has a high cost performance. However, buying a house according to law also has some advantages and disadvantages to consider. Benefits: 1 Lower price: Compared with the market price, the price of auction house is often lower, which can help buyers get better property at lower cost and get a bigger discount. For buyers who have restrictions on housing prices, faster delivery can be a good choice. 2. The purchase process is simple: Compared with the first purchase of real estate, the purchase process is simpler. Buyers can easily complete the transaction in a short time through real estate auction or bidding. 3. Easy resale: Compared with ordinary real estate, the resale cost of auction houses is lower. Because the price of the auction house is relatively low, and the average cost per square meter is not high, if it needs to be resold in the future, the probability of transaction is very high, and it is not easy to buy a house blindly. Disadvantages: 1 More risky: the purchase method is more risky, because many properties are mortgaged by guarantors and sealed up by banks or courts. On this basis, buyers need to know all the real estate conditions, including property rights and quality, otherwise it may bring unnecessary. 2. Need to pay in cash: The capital demand of the purchase method is high, because most courts or banks need the buyer to pay in full within one week after the auction or bidding. This requires buyers to have higher income or better financial planning. 3. It takes time: the purchase method takes a certain amount of time to shoot a house, including finding information, understanding the market and the specific transaction process. This requires buyers to have high patience and good time management skills. In short, although there are certain risks in buying a house, if the buyers carefully understand the market and various details and have certain economic and time support, they can still choose to optimize asset allocation. The disadvantages of auction houses are as follows: 1. The property rights of auction houses are not particularly clear. Before bidding for the auction house, you need to know whether the house has any debt problems and whether the house has multiple mortgages. There may be some defects in the quality of the auction house, because at the time of auction, the court will only make some simple descriptions of the defects. If there are other problems with the house, it will basically not be indicated. 3. The cost of buying a house is not particularly clear. For example, the original owner is likely to default on property fees and utilities. How long is the interval between the first auction and the second auction in the French auction room? The interval between an auction and two auctions is generally within 60 days, which means that after the house is auctioned, it can be auctioned again within 60 days. If the second auction still fails, the third auction can be held within 60 days. If you want to buy a house, there are also corresponding precautions. For example, you need to know as much about the house as possible. In the process of buying, we should see if there are any extra expenses, do our own calculations and ensure that the funds are in place, because this kind of house is to be purchased in full. What are the risks of the auction house and what should we pay attention to? The risks that auction houses should pay attention to are: it is difficult to verify the identity of the original owner of such houses. If the original owner is unable to pay off the debt and uses the property for debt auction, there will be the risk that creditors will come to the door. Generally, auction houses are settled by the original owners. If the original owners are unwilling to move out of their accounts after purchase, they may not be able to settle down. The above is the content of what disadvantages the auction house has. The information of auction house is opaque and the property right is unclear. If someone refuses to vacate the house after the auction house auctions by purchase, they may not be able to move in.