How Long After Auction Do I Have To Move (And Why)?

Exact Answer: One Month

An auction is referred to as selling and buying various goods and services offered to the bidders. The bidders start bidding from an initial price, and the one who makes the highest bid wins the auction. Auctions are sometimes organized to sell priceless things such as a t-shirt signed by a sportsperson, or sometimes an auction is conducted to sell the property of a person who might need to repay any debts.

Sometimes, people tend to sell their houses in an auction. This may result from some financial crisis in life, or the house owner might be moving to a new place and needs to sell the house to someone else. Auctions are mainly conducted for costly luxurious items.

How Long After Auction Do I Have To Move?

There are multiple reasons why one may need to auction for a property, especially a house. Generally, one needs to stay for fifteen years in the house before selling it. Unfortunately, no one knows when the tables would get turned unexpectedly, thereby leading to an unwanted consequence of auctioning a house. A house is considered the most important financial asset of an individual. Hence, it is quite natural that a person may wish to earn the house’s equity or property before auctioning it. One can gain a considerable amount of profit by putting the house in an auction.

There may be many causes, like the buyer’s death, relocation of the buyer’s workplace. Some other situations like a health emergency or financial instability might also tempt an owner to put the house in an auction. The emergencies demand instant financial support, which one can acquire by getting the money from auctioning the property. Sometimes, the house may not suit the buyer, so he decides to put it in an auction.

After the auction is completed, a house leaving notice is sent to the owner within a week. After receiving the notice, the owner must leave the house in one month; otherwise, legal actions can be taken against them.

Why Does It Take That Long After An Auction To Move?

There are multiple financial assets involved when a person wishes to auction the property after buying it. These costs include renovation fees, standard commission fees, inspection fees. Other costs like a concession to the seller and the mortgage penalty would also have to be cleared. The amount of tax to be paid also depends on the time after which the house is auctioned. By auctioning a house within one year of buying it, the owner will have to pay the capital gain taxes. After a year, the seller may have to pay higher capital gain taxes within two years by auctioning the house after a year.

By auctioning the house after two years, there is no need to pay the capital gain taxes. The more time a person stays in the house, the lesser the tax they will have to pay. The capital gain taxes keep on increasing if one spends less time in the house. The breakeven horizon should at least be calculated before thinking of auctioning the house. It is entirely a personal choice when someone wants to sell the property. But, before auctioning, one should calculate net proceeds after owning the ownership of the house.

It takes that long after an auction to move because there is a lot of paperwork involved in the house’s auctioning. The seller needs to confirm whether the buyer has cleared all the dues and all the documents submitted are legal.

Conclusion

Overall, it can be concluded that an auction is a procedure in which assets and services are sold to someone. There is a base price from which the bidding starts, and the bidder who places the highest bid wins the auction. A person can conduct an auction for selling anything, but it is organized to sell luxurious items.

On average, a person is asked to move out within thirty days after a house is sold in an auction. There may be multiple reasons behind the auctioning of the house. A notice is sent to the owner within a week to empty the house. There is a lot of paperwork involved in the process that’s why it takes some time.

References

1. https://onlinelibrary.wiley.com/doi/abs/10.1111/1467-6419.00083
2. https://www.aeaweb.org/articles?id=10.1257/0895330027166