Buying or selling properties through eAuction is the new way which buyers and developers undertake for a convenient, cheaper and quicker process. In the real estate, auctions in the past has been associated with distressed properties being put on sale by banks and other financial institutions to recover dues from defaulting borrowers. This is where eAuctions differ by offering a smooth solution through virtual world, and could fetch a favourable deal for residential properties.
“eAuctions are auctions conducted online so as to enable quicker and more profitable property sales with much less fanfare, efforts and costs involved. Until recent times, banks conducted physical auctions of distressed properties by posting newspaper advertisements and making arrangements for serious potential buyers to assemble at a given venue. However, 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. eAuctions 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, “Ashwinder Raj Singh, CEO – Residential Services, JLL India said.
According to JLL, eAuctions is a win-win situation for both developers and buyers as it requires low investment and doesn’t require physical participation. Since, there is an entry fee involved in eAuctions, only genuine and serious players participate. For buyers, eAuctions is beneficial as it makes participating accessible from anywhere in the country to purchase properties, along with ensuring transparency as developers, government institutions and banks provide detailed information without withholding any details. This means one can buy undisputed properties without hassles or misgivings. The major advantage for buyers in eAuctions is that it prices are invariably very attractive as the operational costs of selling a property physically are reduced manifold while selling them online and developers can offer discounts.
With regard to developers, JLL said the participating developers can benefit by expanding their reach without investing in physical infrastructure, manpower or other additional costs of selling their projects. Also, a good bidding process can earn them handsome returns as there is no upper limit fixed to the final price of the property and a diligent following of eAuctions rules ensure the easiest and quickest way to conduct business without affecting the routine operations of the builder.
So how does eAuctions work? Developers and real estate portals work in tandem to ensure smooth eAuction process. According to JLL, developers and concerned portals must provide detailed information and documentation about the properties on auction in the proposal documents. 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.