Before a property been auction, the bank will always engage a registered property valuer to value the property as at Open Market Value (OMV) and also Forced Sale Value. As a rule of thumb and a rough guide, a Forced Sale value is normally 10% to 15% lower than OMV.

The first auction will normally start using the OMV as the reserve price, in other words, the auctioneer will first attempt to auction the property using OMV, if nobody interested or unsold, the price will start going down. In the case of LACA cases (i.e. properties without individual titles ), the reserve price is get deducted from every stage by approximately 5% to 10% from previous auction price.

Low pricing is normally the major attraction to auction properties, however, other issues such as condition of the property, previous owner history and vacant possession should always taken into consideration whenever bid on the auction property.

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