Representative image for real estate.
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Traditionally, real estate auctions in India were limited to offline discovery, non-transparent and intimidating process and always a worry about legal and pending dues issues.
This not only faced several limitations in awareness, as industry surveys by the National Real Estate Development Council (NAREDCO) in 2022 show that only 27 per cent of respondents were aware of real estate auctions, but also limited participation due to information asymmetry and fear of getting a troublesome property.
However, there is a huge latent demand for these properties as typically auction properties are priced well below the market price and are usually ready-to-move-in properties. Both end-users and investors can benefit massively by buying these properties.
As technology continues to evolve, both banks and buyers can gain significantly from the tools provided by real estate platforms.
Driven by their accessibility, transparency, and efficiency, these platforms are expected to integrate more advanced features, further enhancing the auction experience for all involved.
The continuous advancement in digital tools and the growing comfort of buyers and sellers with online transactions indicate a robust future for online real estate auctions in India. This transformation promises to create a more dynamic, inclusive, and efficient real estate market, setting new standards for how properties are bought and sold in the country.
Selection
When it comes to sourcing properties for auction, traditional methods like going through banks come with certain limitations. Individual bank branches have a narrower selection of properties, which can restrict buyers’ options. In contrast, online auction platforms offer a vastly wider array of properties from multiple banks and provide more choices eventually enhancing the chances of finding properties at competitive prices. The combination of diversity and accessibility to a broader range of audience makes online platforms a superior alternative to traditional bank auctions.
Detailed property information
Online real estate platforms have transformed the landscape of buying auction properties by providing comprehensive property details in a user-friendly format. Instead of sifting through piles of documents and relying on incomplete listings, buyers can access detailed information directly on these platforms. This includes high-quality photos, video tours, and virtual walkthroughs, offering a clear view of the property without needing a physical visit.
Transparency and liabilities
One of the key benefits of these platforms is their ability to provide detailed information about the property’s liabilities, pricing, and legal status. Buyers can access essential documents, including title deeds and past transaction records, which are critical for assessing the property’s value and understanding any potential encumbrances.
End-to-end process support
Navigating the acquisition of auction properties involves several steps, including legal verifications, technical assessments, and securing financing. Online platforms streamline this entire process:
Legal verifications: Platforms often collaborate with legal experts to ensure that all property documents are in order and that there are no hidden legal issues. This reduces the risk of legal disputes post-purchase.
Technical verification: Buyers can avail themselves of technical evaluations to assess the property’s condition, including structural integrity and compliance with local regulations. This information helps in making informed decisions and avoiding unexpected costs.
Demand draft and payment processes: Online platforms guide buyers through the payment process, ensuring that all financial transactions are conducted smoothly.
Home loans and financing: Many real estate platforms have tie-ups with financial institutions to offer home loans and other financing options. This integration simplifies the process of securing funds, as buyers can apply for and manage loans directly through the platform. This is especially critical for auction as the entire payment has to be done within 15 days.
Navigating ambiguity
Auction properties can often come with a degree of ambiguity. The process of buying these properties involves understanding auction terms, property condition, and legal standings, which can be overwhelming. Online platforms act as navigators through this ambiguity by providing clear, concise information and support at every stage. From understanding auction procedures to interpreting property details, these platforms are designed to guide buyers through the complexities of the process.
Conclusion
The advent of online real estate platforms has significantly reduced the barriers to acquiring bank auction properties. What was once a complicated and opaque procedure has become a more transparent and accessible opportunity, enabling more people to take advantage of the great deals that auction properties can offer.
(The writer is Cofounder & Chief Business Officer of NoBroker)