Buying a property can be a big challenge, especially with the high prices of the traditional real estate market.

However, many people are unaware of an alternative that can guarantee discounts of up to 50%: real estate auctions.

Real estate auctions are an opportunity for those looking to purchase a house or apartment at below-market prices.

Whether for living, investing, or reselling, this option can be highly advantageous, as long as the buyer understands the process well and avoids pitfalls.

Real estate auctions are events where properties are sold at reduced prices, usually due to debts or defaults by previous owners.

These sales can be organized by banks, financial institutions, city halls and public bodies.

Both offer discounts that can reach 50% of the market value, making it an excellent opportunity for investors and buyers interested in saving.

Auctioning property occurs when properties are made available for bidding, usually due to default. This method allows for the purchase of properties at reduced prices, making it an attractive alternative for investors.

Unlike the traditional market, used property sales at auction may involve occupied properties or properties with outstanding debts, requiring buyers to carefully review the notice before placing a bid.

With the advancement of technology, online real estate sales have become popular, allowing buyers to participate in auctions without leaving home. Specialized platforms offer filters by location, property type, and value.

For those looking to buy off-plan properties, auctions aren't the ideal option. However, they are advantageous for those seeking opportunities in ready-to-move-in properties, whether for housing, resale, or rental.

The process for participating in a real estate auction is simpler than it seems. Here's a step-by-step guide:

Auctions can be held in person or online. Some of the main real estate auction platforms in Brazil include:

Each auctioned property has a notice, which outlines all the rules, payment terms, and potential debts. This document is essential to avoid unpleasant surprises.

During the auction, participants place bids starting from a stipulated minimum amount. The highest bidder wins the property.

After purchasing a property, the buyer must make payment in accordance with the auction rules and register the property in their name.

Real estate auctions have several advantages for buyers and investors:

Despite the advantages, buying a property at auction requires careful consideration to avoid problems. Here are the main points to consider:

Not all properties auctioned are vacant, and this can be a challenging issue for the buyer.

In some cases, the former owner or tenant still resides in the property, making it necessary to file a legal eviction lawsuit, which can take time and generate additional costs.

Therefore, before bidding, carefully review the auction notice to check for outstanding property tax (IPTU), condominium fees, or unlawful occupation.

These factors can impact the final cost and require legal measures for regularization.

Some auctioned properties may have structural problems, such as leaks, damaged wiring, or the need for major renovations. These repairs can be costly, reducing or even negating the savings obtained at auction.

Additionally, depending on the condition of the property, a lengthy period of renovation may be required before it is ready for use or resale.

Therefore, whenever possible, try to visit the property before the auction or request detailed information about its condition.

If a visit is not permitted, review the photos in the notice, search for previous records, and consult experts to estimate potential renovation costs.

Real estate auctions often have strict payment rules, requiring, in most cases, cash payment or limited financing conditions.

Unlike traditional purchases, where there's more flexibility for installment payments, some auctions don't allow bank financing, requiring the buyer to have the full amount available in a short period of time. This can directly impact your ability to purchase the property and compromise your financial liquidity.

Therefore, before participating in an auction, carefully check the notice to understand the accepted payment methods.

Make sure your financial capacity is compatible with the auction requirements, avoiding unforeseen events or difficulties in paying off the property.

Here are some common questions about buying property at auction:

The best way is to access specialized platforms, such as Zukerman, Sold, and Leilão Caixa, where you can filter properties by city, price, and auction type.

Yes, but not all auctions allow financing. Some auctions require upfront payment, while others offer installment options or bank financing.

It depends on the auction. Some allow in-person visits, while others only provide photos and descriptions.

The buyer may need to file an eviction lawsuit in court, which can take several months.

If the auction was conducted correctly, there's no risk of losing the property. However, it's crucial to check for pending legal proceedings.