With the increase in the usage of digital ways in today’s world, real estate has not been left far behind. The traditional methods of sales and purchases of property have undergone significant changes. E-auctions have revolutionised the ways properties are sold and bought. Property auctions are now moved to online platforms, and people are more comfortable this way. However, e-auction comes with certain legal and tax implications that a buyer must consider. This article provides detailed information about E-auction, its meaning, advantages, disadvantages and how it transforms the real estate world.
See also: 5 common mistakes that every home buyer must avoid in real estate
What is the meaning of E-auction of a property?
E-auction is a process of selling and buying a property through online platforms. In real estate, it involves the sale and purchase of properties through online bidding platforms. It is a digitalised process where properties are listed on websites designed for this purpose. The websites list the property details and include images, all the specifications, and documentation required. Potential buyers who are interested in buying a property can bid on the property through these platforms and in a limited time frame. There is no need for the person buying to be physically present through the bidding. This allows buyers from all over the world to participate in this process.
What are the factors to consider when purchasing a property in an E-auction?
Some factors need to be considered before purchasing a property in an E-auction. These factors are as follows:
Research the property
The research of the property is an essential thing to do before purchasing a property. These details are required so that you can match your requirements. Failing to research the property will stick you in legalities. So, you need to check the amenities, legal status, location, and any pending litigation.
Set a budget for your property
Determine and set a budget before purchasing a property to avoid overspending. This can ensure a profitable investment. Before bidding for a property, research its value and then bid accordingly.
Understand the auction process
Understanding the auction process is the most important aspect of participating in this process. The fees, rules and regulations, charges, and the participation process should be learned beforehand.
What are the pros and cons of E-auction?
E-auction has its advantages and disadvantages.
Pros
- The process is accessible to everyone regardless of the geographical location of the bidder.
- The most important advantage is the transparency of the whole auction process with detailed property information and rules of the auction.
- E-auction offers a wide range of varieties through online mode and allows buyers to select the best property for themselves.
Cons
- There is a risk of fraud happening in an E-auction and concern about the authenticity of the process.
- There is no physical assessment of the property available so there is a lack of physical inspection of the property.
- The legal status of the properties is a crucial aspect including in E-auction and here comes the research of the property.
FAQs
How to participate in an E-auction for a property?
To participate in an E-auction for a property register on the auction platform and then follow the bidding process.
How does an e-auction work?
An E-auction is a transaction between sellers and bidders on goods or services online in an electronic marketplace.
Are online auction sites safe?
Additionally, most auction sites have a security system that monitors user activity and protects their data.
What is the safest online auction?
eBay is considered the best online auction website because it's free for buyers, fees are reasonable for sellers, and its platform is incredibly user-friendly.
Is online auction legal in India?
Yes, an Individual can register as a bidder auction platform.
Is it beneficial to buy an auction property?
Apart from taking possession of the auction property, a buyer must also check certain other factors about the property irrespective of who the seller is.
Can I host my online auction?
You can make your auction website by creating your website domain and setting everything up yourself.
| Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com |
Shimon Oberoi, an economics graduate from Rajdhani College, University of Delhi, strives to simplify the real estate world through her compelling and well-researched content. She has experience in domains like entertainment and economic concepts, among others. When not creating content, she enjoys watching movies, listening to music, and reading fictional books.
