eAuctions, the next level of property marketing - Part 1

The word auction evokes images of expensive fine art sold for staggering sums to the highest bidders. Real estate auctions, on the other hand, have in the past been associated with distressed properties being put on the block sales by banks and other financial institutions to recover their dues from defaulting borrowers. Real estate auctions have been viewed in a rather negative light - though they can involve enormous sums of money. 

Make way for eAuctions: eAuctions are auctions conducted online to enable quicker and more profitable property sales with less fanfare, efforts and costs. Until recent times, banks conducted physical auctions of distressed properties by posting newspaper ads and arranging for serious potential buyers to assemble at a given venue. But, limited awareness and the massive efforts involved in conducting such mainstream auctions often failed to result in the expected sales - or, for that matter, unmasking the appropriate value of the properties in question. Even though such properties attracted discounts of up to 10-15% as banks wanted to recover their costs and not necessarily earn profits, the stigma associated with distressed property auctions and the secrecy surrounding them caused most buyers to steer clear of them. eAuctions are set to change this mind-set - they take place in the virtual world, and anyone make their bid on residential properties with a real hope of acquiring them at very favourable prices. 

How eAuctions Work: Developers tie up with leading realty portals to announce the auction dates and timing. The developers and portals provide detailed data and documentation about the properties on auction in the proposal documents, including the title deeds, images and videos of the properties, minimum prices and other legal aspects as per the rules and regulations. For buyers, it is important to study the bid document carefully, conduct a due diligence to understand all details, and explore the option of physically inspecting the property once before making a final decision. Since there is an entry fee involved, only genuine and serious players participate in eAuctions, which saves everyone’s time and efforts. — to be continued...