Due to the low transaction price of auction houses, more and more people begin to pay attention to auction houses. It's just cheap and risky. If buyers want to finally move in, they may need to spend a lot of energy on the spot to understand the situation. However, many people just heard that the auction house can't buy it, but they know little about the tricks.
First, the status quo of legal auction houses in China
Relevant data show that in less than six years, the number of French auction houses in China has increased by more than 200 times. Since 20 17, the auction house market has been concerned by buyers. At that time, there were only 9,000 auction houses listed and sold nationwide. In 2020, the epidemic suddenly swept the world, and the number of auction houses in China soared from 500,000 in 20 19 to more than 20,000 in10.
With the recurrence of epidemic situation, the epidemic prevention pressure in China is increasing day by day. In this context, all walks of life have been affected to varying degrees, and the phenomenon of enterprise closure, salary reduction and layoffs is common. Even large enterprises have not been spared, and even Internet giants such as Alibaba, Tencent and JD.COM have made large-scale layoffs to protect themselves.
In addition, the continuous tightening of the national real estate policy has led to the thunder of real estate developers and the decline of house prices, which is also an important factor in the increase of legal auction houses. So in 20021year, the number of legal auction houses in China increased to about 1.7 million, 500,000 more than in 2020 when the epidemic began.
Faced with the exponential growth of the number of auction houses, the state has successively raised the shelf standards of auction houses. However, in 2022, the total number of auction houses increased, reaching 3 million. 606,000 sets were added in a single year, an increase of 35%. However, the turnover was only 1 1.8 million sets, down 15% year-on-year.
Second, the source of the auction house
In the supply channel of the auction house, about 60% of the houses are out of supply. Houses are heavy assets, often tens of millions. Therefore, about 90% buyers in China choose to use real estate as collateral to mortgage loans to banks and other financial institutions. Repay the monthly payment to the financial institution according to the agreed amount.
If the lender defaults, the bank will bring a lawsuit to the local court, asking the court to conduct a judicial auction of the defaulted property. The money from the sale of the house is used to repay the bank loan.
The second largest source of auction houses is private lending, accounting for about 30%. Private lending disputes mainly include contract, guarantee, infringement and other disputes. In the trial of creditor's rights and debts, the court needs to execute the debtor's assets to repay the creditors.
There are also judicial confiscation and ownerless property. Judicial confiscation mainly refers to the confiscation and enforcement of illegal income such as criminal cases, corruption and bribery. This part of the auction house has higher cost performance and less potential risks.
Although ownerless property accounts for a relatively small proportion in auction houses, it has an upward trend in the past two years. It is worth noting that the funds obtained from judicial confiscation and unowned property auction will eventually be nationalized.
Third, why are French auction houses cheap but nobody buys them?
It is an indisputable fact that auction houses are cheap. According to the sales data of the auction house based on big data statistics, the transaction price of the auction house is basically 5 to 7 fold lower than the market price. The reason why the auction house has such great preferential strength is mainly related to the auction form of the auction house.
Before the auction house is listed for pricing, it is necessary to evaluate the value of the house. In order to realize assets quickly, the appraised price of the house will generally be listed for sale at a discount of about 5% on the basis of the market price.
If the first auction is unsuccessful, the second auction will reduce the price by about 20% on the original basis. If the house is located in an underdeveloped area and is not competitive, the transaction price can even be as low as 50%.
The price of auction house is cheap, why is everyone's buying enthusiasm not high? First of all, it is difficult to transfer the house according to the law. After buying a house, buyers need to go through the formalities of house transfer with the judgment of the court. After getting the property, you need to go through the transfer procedures, but there are various problems in the process. For example, small property houses can't do property certificates, and houses are mortgaged and re-loaned.
Secondly, the taxes and fees of auction houses are high. According to statistics, there are a large number of legal auction houses in China that need to pay taxes. Individual taxes and fees have reached as much as 30% of the total rent. Invisibly increased the purchase cost of buyers.
Finally, there are many disputes involved in house auction stipulated by law. Some houses still have long-term lease contracts, and even if the house has passed the household, the tenants cannot be driven away. There are also previous arrears in housing utilities, and buyers need to pay the arrears before they can handle the transfer.
summary
Although the auction house market has developed by spurt, there is a huge disparity between the listing volume and the trading volume. However, with the process of auction house becoming more and more perfect, I believe many people will choose auction houses with more price advantages. What do you think of this?