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The “other” real estate market: how the system of judicial appraisals and electronic auctions works to acquire homes - Infobae
Source:
www.infobae.com
December 30, 2024
Less well-known, this is an option that offers properties at competitive prices. Advantages and risks of an alternative that, under strict legal frameworks, allows interested parties to participate remotely, reduces costs and encourages transparency. Which units qualify?
By Jose Luis Cieri
A young family visits a property with the intention of buying it, after it has been appraised and approved for sale by the competent court (Photo: Getty)
In the real estate sector, there is a lesser-known but highly relevant sector: judicial appraisals and electronic auctions .
This “parallel” market, which operates under strict legal frameworks, has become an alternative for those seeking to acquire properties at competitive prices.
This segment, which is characterized by its transparency and technical focus, also presents risks that buyers should consider.
According to Jimena Maderna , auctioneer and expert in judicial appraisals at Maderna Relaciones Inmobiliarias, “judicial appraisals are valuations of properties carried out in the context of legal proceedings, such as inheritances, seizures, divorces or successions. Unlike traditional appraisals, these seek to establish an objective and technical value, without commercial influences, and are used as a reference by the courts to make decisions.” They are carried out by expert appraisers who, at the request of a court, determine the value of a property or property that can be registered in legal proceedings.
Electronic auctions, particularly in the Province of Buenos Aires , have gained ground as an efficient and transparent method for marketing properties involved in litigation.
According to Maderna, this system allows interested parties to participate from anywhere through digital platforms authorized by the Judiciary.
Nahuel Noguero , from Noguero Properties, highlighted that this modality avoids unethical practices, such as the well-known “leagues”, and encourages greater competitiveness among participants.
“ Judicial appraisals play a crucial role in this process, as they establish a technical and objective value that serves as an initial reference. This value is determined by the comparative method, endorsed by the National Appraisal Court or the corresponding court,” added Maderna.
Noguero said that in some cases the base price can be set directly by the court, while in others it is calculated as two thirds of the value of the appraisal carried out.
The auctioneer , a key figure in this type of operation, is responsible for carrying out the auction and ensuring that legal regulations are met.
Building in the GBA, where judicial auctions allow the acquisition of properties at affordable prices under strict legal frameworks
Atilio Aguilar , a judicial auctioneer, pointed out that the values at auctions are generated “from appraisal methods such as comparative, replacement cost or income capitalization, always adjusted to the current market.”
Electronic auctions are conducted entirely online, ensuring anonymity among participants, who are identified only by a code. This system eliminates interference in bidding and ensures greater transparency in the process, making it an efficient and secure option for acquiring properties.
Aguilar explained that the basis for the auction is always defined by the judge, who evaluates factors such as an official valuation of the file, the fiscal valuation or, in cases of debt lawsuits, the amount owed. “As a general rule, it is set at two thirds of the corresponding value, although the judge can modify this criterion depending on the circumstances of the case.”
According to Noguero, price ranges vary widely depending on the area and the characteristics of the property. “In the northern area of Greater Buenos Aires (GBA), the average price of an apartment or plot of land can be around USD 150,000,” he exemplified.
This market offers an opportunity for investors and buyers interested in acquiring properties at convenient prices. According to the available platforms, a used three-room apartment of 70 m2, located in neighborhoods such as Núñez or Belgrano, or in GBA districts such as Tigre or San Martín, with an average value of USD 150,000, can be reduced by up to 25% if it is under litigation and is awarded after a judicial appraisal.
However, it also involves certain risks. Aguilar warned that buyers should consider aspects such as the legal status of the property, possible occupants or associated debts, and the physical condition of the property.
A young man follows an online auction from his computer, looking to take advantage of the purchase of a home at a lower price than in the traditional real estate market
These requirements include the presentation of ID and the deposit of a guarantee, which is usually a percentage of the base price of the property. This deposit seeks to ensure the seriousness of the offer and, if the property is not awarded, it is refunded to the participant.
Noguero recommended that interested parties review the court file, read the order of verification made by the auctioneer and visit the property on the days authorized to check its status. “These measures are essential to minimize risks and ensure a successful operation,” he added.
SIPC information is used not only by real estate agencies, but also by court experts and banks, making it a reliable tool to support technical appraisals.
The SIPC has evolved over time, moving from delivering information on slides and diskettes to offering automatically updated data through servers. Its database, unique in the country, is distinguished by its rigor and reliability, as it only uses serious and verified sources.
A couple and a real estate agent tour a house in good building conditions, available for purchase after being appraised and legally approved (Illustrative Image Infobae)
According to Aguilar, these properties are marketed in this way due to the lack of agreements between the parties involved in a lawsuit, such as in cases of private debts or unpaid mortgages.
"Judicial auctions often also include properties affected by legal conflicts, such as foreclosures or forced divisions. These circumstances lead to properties being offered under strict judicial frameworks and represent an alternative to resolve property disputes," said Noguero.
Although this market may be less known than the traditional one, its transparency and regulation make it an attractive option for those looking to acquire properties at favorable prices.
Maderna concluded: “It is essential to have the right advice and comply with all legal requirements to ensure a successful operation.”
www.buysellba.com
Source:
El “otro” mercado inmobiliario: cómo funciona el sistema de tasaciones judiciales y subastas electrónicas para adquirir viviendas
Menos conocida, es una opción que ofrece propiedades a precios competitivos. Ventajas y riesgos de una alternativa que, bajo estrictos marcos legales, permite a los interesados participar de forma remota, reduce costos y fomenta la transparencia, ¿Qué unidades califican?
www.infobae.com
December 30, 2024
Less well-known, this is an option that offers properties at competitive prices. Advantages and risks of an alternative that, under strict legal frameworks, allows interested parties to participate remotely, reduces costs and encourages transparency. Which units qualify?
By Jose Luis Cieri
A young family visits a property with the intention of buying it, after it has been appraised and approved for sale by the competent court (Photo: Getty)
In the real estate sector, there is a lesser-known but highly relevant sector: judicial appraisals and electronic auctions .
This “parallel” market, which operates under strict legal frameworks, has become an alternative for those seeking to acquire properties at competitive prices.
This segment, which is characterized by its transparency and technical focus, also presents risks that buyers should consider.
According to Jimena Maderna , auctioneer and expert in judicial appraisals at Maderna Relaciones Inmobiliarias, “judicial appraisals are valuations of properties carried out in the context of legal proceedings, such as inheritances, seizures, divorces or successions. Unlike traditional appraisals, these seek to establish an objective and technical value, without commercial influences, and are used as a reference by the courts to make decisions.” They are carried out by expert appraisers who, at the request of a court, determine the value of a property or property that can be registered in legal proceedings.
Electronic auctions, particularly in the Province of Buenos Aires , have gained ground as an efficient and transparent method for marketing properties involved in litigation.
According to Maderna, this system allows interested parties to participate from anywhere through digital platforms authorized by the Judiciary.
Nahuel Noguero , from Noguero Properties, highlighted that this modality avoids unethical practices, such as the well-known “leagues”, and encourages greater competitiveness among participants.
Setting values and steps in auctions
The base price of a property at a judicial auction is set after considering various factors, such as its location, state of repair, age, available services and access to transportation.“ Judicial appraisals play a crucial role in this process, as they establish a technical and objective value that serves as an initial reference. This value is determined by the comparative method, endorsed by the National Appraisal Court or the corresponding court,” added Maderna.
Noguero said that in some cases the base price can be set directly by the court, while in others it is calculated as two thirds of the value of the appraisal carried out.
The auctioneer , a key figure in this type of operation, is responsible for carrying out the auction and ensuring that legal regulations are met.
Building in the GBA, where judicial auctions allow the acquisition of properties at affordable prices under strict legal frameworks
Atilio Aguilar , a judicial auctioneer, pointed out that the values at auctions are generated “from appraisal methods such as comparative, replacement cost or income capitalization, always adjusted to the current market.”
Electronic auctions are conducted entirely online, ensuring anonymity among participants, who are identified only by a code. This system eliminates interference in bidding and ensures greater transparency in the process, making it an efficient and secure option for acquiring properties.
Aguilar explained that the basis for the auction is always defined by the judge, who evaluates factors such as an official valuation of the file, the fiscal valuation or, in cases of debt lawsuits, the amount owed. “As a general rule, it is set at two thirds of the corresponding value, although the judge can modify this criterion depending on the circumstances of the case.”
Properties for auction: types and prices
Properties that are usually auctioned include houses, land, commercial premises and industrial properties. Many of these come from legal proceedings related to debts, seizures, unpaid mortgages or forced divisions in cases of divorce.According to Noguero, price ranges vary widely depending on the area and the characteristics of the property. “In the northern area of Greater Buenos Aires (GBA), the average price of an apartment or plot of land can be around USD 150,000,” he exemplified.
This market offers an opportunity for investors and buyers interested in acquiring properties at convenient prices. According to the available platforms, a used three-room apartment of 70 m2, located in neighborhoods such as Núñez or Belgrano, or in GBA districts such as Tigre or San Martín, with an average value of USD 150,000, can be reduced by up to 25% if it is under litigation and is awarded after a judicial appraisal.
However, it also involves certain risks. Aguilar warned that buyers should consider aspects such as the legal status of the property, possible occupants or associated debts, and the physical condition of the property.
Requirements for intervention
To participate in an electronic judicial auction in the Province of Buenos Aires, interested parties must register on the platform authorized by the Supreme Court of Justice and comply with the requirements established in the corresponding edict.
A young man follows an online auction from his computer, looking to take advantage of the purchase of a home at a lower price than in the traditional real estate market
These requirements include the presentation of ID and the deposit of a guarantee, which is usually a percentage of the base price of the property. This deposit seeks to ensure the seriousness of the offer and, if the property is not awarded, it is refunded to the participant.
Noguero recommended that interested parties review the court file, read the order of verification made by the auctioneer and visit the property on the days authorized to check its status. “These measures are essential to minimize risks and ensure a successful operation,” he added.
The role of SIPC
A key resource for judicial appraisals is the Construction Price Information System (SIPC) , founded in 1985 by Ángel Juan Bacigalupo . This system collects historical and current data on construction prices, market variations and real estate publications, allowing for accurate comparative analysis.SIPC information is used not only by real estate agencies, but also by court experts and banks, making it a reliable tool to support technical appraisals.
The SIPC has evolved over time, moving from delivering information on slides and diskettes to offering automatically updated data through servers. Its database, unique in the country, is distinguished by its rigor and reliability, as it only uses serious and verified sources.
A market with opportunities and challenges
Judicial auctions and associated appraisals represent an alternative real estate market that combines investment opportunities with legal and technical challenges.
A couple and a real estate agent tour a house in good building conditions, available for purchase after being appraised and legally approved (Illustrative Image Infobae)
According to Aguilar, these properties are marketed in this way due to the lack of agreements between the parties involved in a lawsuit, such as in cases of private debts or unpaid mortgages.
"Judicial auctions often also include properties affected by legal conflicts, such as foreclosures or forced divisions. These circumstances lead to properties being offered under strict judicial frameworks and represent an alternative to resolve property disputes," said Noguero.
Although this market may be less known than the traditional one, its transparency and regulation make it an attractive option for those looking to acquire properties at favorable prices.
Maderna concluded: “It is essential to have the right advice and comply with all legal requirements to ensure a successful operation.”
www.buysellba.com
