The Next Level Of Real Estate Marketing -
by Mr. Ashwinder Raj Singh, JLL India
The word auction
evokes images of hyper-expensive fine art being sold for staggering sums to the
highest bidders, with the media in frenzied attendance to chronicle the process
every step of the way.
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.
As such, real estate auctions have been viewed in a rather negative
light - though they can and often do involve enormous sums of money.
Make Way For eAuctions..!
eAuctions, on the
other hand, 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 to 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 favourable
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 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.
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| Ashwinder Raj Singh, JLL India |
Since there is an
entry fee involved, only genuine and serious players participate in eAuctions,
which saves everyone’s time and efforts.
Who Benefits In
eAuctions
- Buyers or/ Developers, promoters?
It is actually a
win-win situation for both parties. To list out the benefits in an eAuction:
For
Buyers:
· Since
the auction is conducted online, buyers can participate from anywhere in the
country to purchase properties that strike them as sound investments among the
various listed options
· For
the sake of transparency (since trust is a major factor in the success of
eAuctions) developers, government institutions and banks provide detailed
information without withholding any details, which means one can buy undisputed
properties without hassles or misgivings
· eAuctions
are a new way of selling real estate, so one can expect to purchase into
brand-new constructions instead of old properties (which may be disputed or
have other hidden legal catches)
· 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
For
Developers..!
• Participating
developers can expand their reach without investing in physical infrastructure,
manpower or other additional costs of selling their projects
• A
spirited bidding process can earn them handsome returns, as there is no upper
limit fixed to the final price of the property
• As
long as the basics of the process are adhered to and all rules and regulations
are followed diligently, eAuctions are the easiest and quickest way
to conduct
business without affecting the routine operations of the builder.
How Effective Are eAuctions
As Property /Real Estate Selling Platforms?
So far, nothing could
replace physical inspection of a property - not least of all because there are
sizeable sums of money involved.
However, things are changing rapidly. Going
forward, technological advancements will ensure that eAuctions deliver enormous
benefits to both buyers and developers.
Buyers have access to the best
properties on their cell phones and can make their decision without stepping
out of their home. Simultaneously, developers have access to buyers from across
the country at a fraction of a cost that they usually incur for marketing their
projects.
eAuctions certainly
faced initial teething problems, but technology has ironed out most wrinkles in
the process. A number of developers have already realised the potential of
taking the eAuction route to sell their properties and are investing
enthusiastically in the process by meeting buyers' requirements of paperwork,
ease, transparency to earn credibility in this cutting-edge property marketing
domain.
The Future Of
eAuctions..!
With growth and
advancement in technology, the Internet is the future of business - and the
real estate industry is falling in line to reap its multiple benefits.
With 402
million (40.2 Cr) active Internet users in India by end 2015, the phenomenal growth of
ecommerce and adequate infrastructure and system controls now available, the
real estate industry has become a veritable goldmine once again.
eAuctions have a
tremendous future considering the massive benefits, ease, transparency and
efficiency they bring to the entire process of buying and selling properties.
It's early days yet, and early adopters of the exciting and immensely lucrative eAuction platform
will be the ones to benefit the most. In fact, eAuctions are all set to become
the new standard in real estate marketing, and will totally revolutionize the
sector in the years to come.
About the author..
Mr. Ashwinder Raj Singh,
CEO - Residential Services,
JLL India
For media Contact
Mr. Arun Chitnis
Head – Corporate
Communications & Media Relations
JLL India
Level 6, Amar Avinash
Corporate Plaza
Bund Garden Road,
Pune 411 001.
Tel: 020 3093 0441 Fax: 020 4019 6101
Mobile: +91 9657129999
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