23/01/2026
When it comes to auction houses, a lot of people are actually interested.
Main reason? The price. Auction properties are usually much cheaper compared to subsale or brand-new houses. Let’s be honest, finding a house below RM200k these days is really tough. But once you look at auction listings, you start thinking, “Oh… there are still some options.”
That said, even though many people are interested, auction houses are also the ones most people are afraid to buy. Not because they don’t want to, but because of the risks involved.
One of the first issues most buyers face is money.
Auction properties don’t allow price mark-ups for loans. Most banks will only finance about 90 percent of the winning bid price. That means buyers must prepare their own deposit upfront. On top of that, there are legal fees, outstanding utility bills, IWK charges, maintenance fees and repair costs.
And repairs these days are not cheap.
Even basic fixes can easily cost a few thousand ringgit. Sometimes you look at the bills and suddenly RM8k or RM10k is gone just like that. It hurts a little.
Another common problem is loan rejection.
This happens more often than people think. Some buyers manage to win an auction, only to find out later that their loan cannot be approved. It could be due to their financial profile, or the condition of the house itself.
If the property is badly damaged, no roof, broken structure, missing doors and windows, banks usually won’t take the risk.
And here’s the part that shocks many people, if the loan fails, the deposit is not refundable.
Time is another big challenge when dealing with auction properties.
Every auction case comes with a strict timeline to complete the loan application, legal process and ownership transfer. If the process is delayed, penalties may apply.
Sometimes the issue isn’t the buyer, but the process itself. Choosing the wrong banker or lawyer who lacks experience in auction cases can slow everything down. Many people choose someone they know because they trust them, but when things get stuck, it’s the buyer who ends up stressed.
There are also cases where the property is still occupied.
Legally, the house belongs to the buyer after the auction. But in reality, getting occupants to move out takes time, patience and extra money. It’s rarely an easy process.
That’s why before bidding on an auction property, it’s important to do your own checking. Visit the place if possible, observe the surroundings and try to understand the situation. From there, you can roughly tell how smooth or difficult the process might be later.
At the end of the day, auction houses are not bad investments.
They can be great opportunities, but only if you go in with the right knowledge. Chasing low prices without proper understanding can easily lead to losses.
No matter what type of property you’re buying, one thing stays the same. Don’t make the decision alone. Get advice from people who understand the process, so you don’t have to learn through costly mistakes.
Is it fun buying auction houses
Yes, it is
Because every case comes with its own story.
