E - Auctions Are a Growing Trend for buying residential, commercial, and Industrial properties


Imagine looking for a residential property in a preferred location in a city. You get to know that a bank is selling its non-performing assets (NPAs) or mortgaged assets at a price lower than the market. The bank already authenticates the property. How excellent can this way of investing in real estate be?

Source: (technavio.com)

“The online auction market share is expected to increase by USD 1.90 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 9.7%.”



Previously, banks and financial institutions often conducted auctions physically, and the information with all the details used to come in the newspaper. These days, an E-auction portal spreads the news to interested buyers throughout the country. Hence, seeking information related to property auctions has become much more manageable.

Why are E-auctions a growing trend?

An e-auction is a process conducted in a digital portal where the auctioneers enlist the assets for online bidding with a reserve price. Interested bidders will have to register in the E-auction portal to get information about the assets enlisted for bidding.

Based on the reserve price, an earnest money deposit (EMD) is made by a bidder to participate in the auction. It generally ranges between 5% and 15% of the reserve price. Once the bidding process is closed, the highest bidder wins. He will then come up with a percentage of the reserve price within a stipulated period and pay the rest as per the period given by the owner of the property.

You can clearly understand that everything here happens online and is highly convenient for buyers and sellers.

Here is a list of reasons why E-auction is a growing trend now.

1.      Consolidated platform

A consolidated digital platform with an interactive user interface offers complete information regarding the properties to be auctioned online. The assets get categorized in type and location, so interested buyers can easily search and decide to participate in the auctions.

2.      Easier to gather information

Previously, obtaining information related to auctions conducted by banks and financial institutions was hectic. The news was only published on paper media or displayed on the auctioneers' official websites. Digital auction portals contain information related to all the auctions conducted nationwide. Hence, there is no need to check the official websites of banks and financial institutions. Registered users of the E-auction portals get notifications on a real-time basis.

3.      Authentic assets

Finance Institutions/Banks authenticate the assets, and interested buyers trust the process followed. Moreover, the process is transparent and convenient.

4.      Convenience at its best

Registering in an online portal and bidding becomes highly convenient to interested buyers. There is no need to visit the auctions physically.

5.      Assistance

The e-auction service providers assist interested buyers in arranging deposits and connecting with the banks throughout the process.

These e-auction portals are increasing the visibility of the auctions conducted and aid in the quicker accomplishment of capital recovery from the market. Both buyers and sellers get benefitted from the entire process. It has thus become a trend to follow for real estate investment.

AuctionBazaar provides a transparent platform for Banks and Finance companies to list their NPAs and find potential bidders without intermediaries. Contact us here https://www.auctionbazaar.com/contactus.  

 

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