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03 Sep 2024
How Property Auctions are revolutionizing the Real Estate Market
- By Om Vyas
- REAL ESTATE
Introduction
There is dynamic landscape of property markets, professional grapple with many hurdles that can impede the path the successful transaction. These hurdles are not merely obstacles but opportunities for innovation and strategic resolutions. They demand the understanding of market trends, consumer behavior and regulatory environments. When it comes to buying or selling real estate there are several ways to do it. There is one method which is increasing rapidly over these years that is auction. Unlike the traditional times, where the seller should set a reserve price and the one who bids the highest would get the property. But in modern times it’s not like that now-a-days the one who bids the highest price will get the property regardless of the price of the property. In this Article we will dive deeper into what auction is doing in now-a-days in markets.
Contents
What is type of auctions
Types of auction
E-Auction
Conclusion
What is Auctions?
Auction is a kind of sale in an economic system where sellers offer goods for sale and bidders compete with each other based on the quality of property and price of the property. Auction sale can be oral or written bidding methods like Dutch auction, English Auction, and Online Auction.
There are different types of auction like private auction, advertisement auction, sealed bid, auction, and live auction, sale in lots, First lot auction, Second lot auction, and auction sale of unsold lots.
Private Auction: This is a type of auction where seller and buyer known each other.
Advertisement Auction: In this type of auction seller Gives a notices or kind of advertisement in newspaper or online or by any other means about the product that he is willing to sell through auction.
Sealed Bid Auction: In this type auction potential buyers send their bids to the seller in a sealed envelopes. The highest bidders wins the product.
Live Auction: Bidders participate live either by attending physically or participating through phone or the internet.
Sale in lots: where items are sold in lots of batches.
First lot Auction: Each lot is sold to highest bidder
Second lot Auction: In these type of auction items are grouped into batches, and these batches are then offered as individual lots to potential buyers interested in auction sale.
Auction sale of unsold lots: In this type of auction the seller only sells those production which has not been sell in first or second lot auctions to interested bidders.
There is something called E-Auctions which is playing a significant role in this digital era. The new-age practice of the E-auctions has made the things easy for sellers and buyers because not it possible to bid the properties online according to their convenience. An e-auction is process where sellers put their property for sell online and the potential buyer bid for that property online. This is an efficient way of selling and buying the properties.
Auctions have become a normal phenomenon now-a-days in trading real estate property. Earlier there was trend of hiring a real estate agent and telling them to sell the property however now auction is the first option of the people as it is more efficient and people are getting best price of their property sometimes higher price than the property value. The bidding war between the potential buyers increases the value of the property surpassing the initial expectations from the property.
The auction process should be conducted with transparency and the buyers should get the necessary information about the property. The sellers should issue advertisement regarding the auction and by this way they can attract the buyers who may got interest in buying their property. By this way sellers can reach to the buyer who is giving a best value of the property and the buyer is getting the property of his interest.
The speed and the efficiency of the process with the competitive nature can lead the property to its higher sale prices. It can trade various assets of the buyers.
Conclusion
Auctions market is a market where buyers and sellers participate against each other and sellers gets the best price of his property. Auctions has revolutionized the real estate market and helped the real estate sellers and buyers to get the best price. The auctions can trade assets, including stocks, bonds, commodities, and derivatives.
In case of any query regarding How Property Auctions are revolutionizing the Real Estate Market, feel free to connect with our legal experts https://tuljaestate.com/ at +91 96380-69905
About the Author
Anju S Nair
Legal Researcher | LLB, MA English| Corporate Lawyer | Business Enthusiast | Founder & CEO at iLawbook.