Auction Market An Avenue For More Than Just Distressed Properties

KUALA LUMPUR (March 12): The auction market has the potential to become an avenue to market non-distressed properties with some classy and creative sales strategies, said an auction market expert.

While changing the perception of auction properties as forced sales by banks is a daunting task, agents with the right skills can also sell non-distressed assets through auction and even encourage buyers to raise their bids in the process, said experienced auctioneer Lim Boon Ping of Kim Realty.

“If auction could be done in a classy way, there will be one more way to help agents to market their properties,” he said in his session entitled “Selling Property via Auction” during Malaysian Annual Real Estate Convention 2016 (Marec’16).

“In countries like Australia, the auction property is a good way to market the property and adding value to it,” he shared.

For instance, agents Down Under will try to enlighten prospective buyers about the property to help them make a decision.

“Before the actual auction day, there will be an open house event, where interested buyers could come and view the house and talk to the agents, before they attend to the auction event. Some interested buyers may even sign the cheque to buy the property after viewing the house,” he added.

He noted that in some auction case overseas, buyers are more willing to raise their bids in auction after they have seen the condition of the house.

Lim, who is also the Malaysian Institute of Estate Agents (MIEA) vice- president, pointed out
that buying property through the auction market has benefits overlooked by most buyers.

“The auction process is transparent and fair as the reserve price is set through a valuation process by valuers, which can reflect the real value of the property according to market price. Furthermore, the auction process is done through bidding, which means there will not be a lengthy negotiation process in between buyers and sellers,” he explained.