Popularity of Buying & Selling Property Through Auction
PROPERTY auction have been around for a very long time and they are steadily gaining in popularity as the way to buy and sell property effectively. Traditionally, property auction is a process of selling and buying real estate by offering or taking bids and selling the property to the highest bidder, which usually done in public forums. In short, it is an open sale of a property.
The types of property being sold at auction are mainly, repossessions, private sale, government and local authority and also commercial property. The people who usually attend to public auctions are either building up a property portfolio, buying to rent out or buying to refurbish and sell on for a profit or even to purchase for their first home.
Gary Chia of AuctionGuru.Com.My, explains, the market of public auction is growing but there are still a lot of people out there who does not understand about public auctions. “A lot of real estate deals are clinched through property auction; it is an effective method of selling real estate. This is so because generally property auction is a win-win proposition for the seller as well as the buyer.
“Additionally, bidding for a property at auction generates fun and excitement because of the time aspect of the transactions. The entire process of marketing real estate can accelerate through competitive bidding. This is some of the many reasons why people opt for property auction.
Furthermore, Chia elaborates that there is a lot of advantages in selling or buying properties through property auction that the public should know. For the seller, via property auction, the seller has the advantage of showing of his or her property to many potential customers at one time and the timeframe is much shorter for property sold under an auction compared to properties sold through estate agents.
“At an auction, the sellers have the right to dictate the minimum price of the sale, and the final selling price will be determined by the highest bidder, therefore there is no cap on the outcome of the selling price. “During an auction, there is no limit on the final sale price, if the seller is lucky enough or the property is really good, the buyer’s auction price can exceed the price of the market value. This is also a great way to increase the visibility of a property for sale.
“Compare with traditional real estate sales methods, sellers run the risk of overpricing their property and seeing very little interest and also run the risk of underpricing the property and selling it for much less than its actual value. Gary Chia also said that, sellers can eliminate high carrying cost such as interest payment, utility bills, maintenance charges and other unnecessary inconveniences such as unscheduled viewing to unqualified prospects. This is because the auctioneers use a timeframe to advertise and market the property before an auction.
From the buyers prospective, the buyer, too, stands to gain from it, as Chia explains that since the properties are usually purchased at fair market value through the process of competitive bidding, the buyer can determine the ultimate price of the property. “The buyers also have the time to make a decision on the property and how much they want to pay, because they are usually provided with comprehensive information about the property before the auction begins. “Most of the time, properties sold at auction is much less than the market value of the property, There for there is no reason at all why an ordinary first time buyer should not take advantage of the bargains on offer.
For first timers, Chia emphasises to look up information and do their homework before a taking part on a property auction. “You can find everything you want to know about property auction by logging on to website www.auctionguru.com.my, which cover all types of auction properties throughout Malaysia. “You can get extensive information on property auction from our website. The website keeps track with all public real estate auctions advertised in our local media. It is a reference that can benefit bankers, valuers, investors and the general public.
Chia added that the website is frequently updated with the pricing index of various types of property available in the market place or the reserved price of the property advertised. It also tells you about the upcoming property auctions and its latest update throughout the country. “Most auctions are advertised well before time which can give you enough time to do a thorough back ground check and homework of the neighborhood and the local infrastructure.
“Before taking part in a property auction, always check the property in order to evaluate its real value and estimate a suitable bidding price and always keep yourself updated on the auction process in order to know about any last minute venue and date changes,” Says Chia
For more information please call AuctionGuru.Com.My at 03-6206 1309 or visit us at www.auctionguru.com.my.
By Gary Chia of AuctionGuru.Com.My