These auctions were labelled as dishonour sales done by the sellers when there was no way. However, this view has changed as the amount of property stocks are increasing day by day since sellers of residential in addition to commercial properties are choosing to market their property directly or turning into real estate agent houses to get high price according to market prices from the auctions. Auction opportunity arises when the head of a seller is auction that the property will bring a reasonable market price. His equity position in the property that is auctioned ought to be strong to get a price. Having a strong equity position in the property, he will save the price of paying a sales commission. Once the market is soaring auctioning’s timing should be ideal. The auctioneer should attempt to prevent bearing carrying costs.
A profitable auction when there is limited supply of a certain kind of land whose demand in the housing market is high Chance is generated or the market is decreasing with purchaser’s interest in this sales process. When a property is offered for a feeling of urgency appears to bring the parties together and a sales price is created by the earnings process through competitive bidding among the parties that are participating. In days of property Auctions exposed to foreclosure or only the possessions in conditions were auctioned. Now, however, sellers are currently shifting to sell their houses. Because the sooner believe that a seller won’t take the chance of auctioning his property than its market value has changed this transformation has happened. Real estate auctioneers are to specify he will get in any circumstance. By setting a price additionally, he will have to bear the possibility of buying the property back if it will save the expense of paying the sales commission to the auction house and doesn’t achieve that price.
Real estate owners prefer to go for an auction that is direct rather than visiting an auction houses to prevent payment of sales commission to real estate agents that is about 8-10 percent of the worth of the property. The property owners have control on the auction sales process. When a property requires lot of time to market this is essential and a realtor or broker represents the owner. Many times, it is best for a property agent to auction a property not in use to cut maintenance expenses down. Real estate auction is an occasion both for the bidding parties and the auctioneer so they are always well attended. Since auction is the best way and property auction’s magic works for the promotion of these properties for sale to acquire market value for the estate.