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.
Even though such properties attracted discounts of up to 10-15% as banks merely 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 favorable prices.
How eAuctions Work
Basically, developers tie up with leading real estate portals to announce the auction dates and timing. Alongside, the developers and concerned portals must provide detailed information and documentation about the properties on auc t ion 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.