THE online world is a bargain hunter's best friend, with discounts and deals available for a wide range of products, be it electronics, holidays, apparel or pieces of art. The latest addition being real estate auctions by banks, at a rate cheaper than the market.
When borrowers fail to repay loans, banks auction the property to recover dues. These auctions take place under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) Act.
Banks and financial institutions have tied up with online real estate sites such as indiaproperties.com and Arms, the retail debt recovery arm of asset reconstruction company Arcil. Over the past year, both have collectively auctioned almost 1,500 properties across India, the majority being residential.
The bidding process
The initial part of the process is similar to offline auctions. Thirty days prior to the date of the auction, advertisements are published in at least one English and one regional daily. Additionally, auctioneers contact brokers in the catchment area of the auctions to spread the word.
To participate, interested parties must give their bids form, requesting a log-in address and password.
These are different from an offline auction in the way they are conducted.
On the given date, at a pre-specified time, bidders must log in to the website with the address and password issued to them. The bidding takes place live. All participants can view the bids placed by others and, accordingly, revise their own.
However, you must remember that you are responsible for any disruption due way of proving such a malpractice, as the auctioneers are upfront about the fact that the auction's authenticity cannot be questioned.
Typically, auctioned properties are 10-20 per cent cheaper than the market prices. And, that is the maximum discount you can expect, irrespective of the platform — online or offline. Buyers opting for an online auction do it for convenience rather than saving on money.
Online auctions give one a chance to bid for properties across India. But, there is a caveat. Buyers need to have their representatives in the city where the property is being auctioned. Considering these properties are sold on an as-is basis, having someone to check for pending dues or litigation before bidding for a property would be a good idea.
1. There is no price advantage; don't expect discounts
2. Bid for outstation properties only if you know someone who can first survey the property
3. If there is any disruption (internet connectivity) during the auction, you are responsible
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Also, know how to buy mutual funds online:
1) DSP BlackRock Mutual Funds:
http://prajnacapital.blogspot.com/2011/05/buying-dsp-blackrock-mutual-funds.html
2) Reliance Mutual Funds:
http://prajnacapital.blogspot.com/2011/06/buying-reliance-mutual-funds-online.html
3) Reliance Mutual Funds:
http://prajnacapital.blogspot.com/2011/07/buying-hdfc-mutual-funds-online.html
4) Sundaram Mutual Funds:
http://prajnacapital.blogspot.com/2011/07/buying-sundaram-mutual-funds-online.html
5) Birla Sunlife Mutual Funds:
http://prajnacapital.blogspot.com/2011/06/buying-birla-sunlife-mutual-funds.html
6) UTI Mutual Funds:
http://prajnacapital.blogspot.com/2011/06/buying-uti-mutual-funds-online.html
7) SBI Mutual Funds:
http://prajnacapital.blogspot.com/2011/06/buying-sbi-mutual-funds-online.html
8) Edelweiss Mutual Funds:
http://prajnacapital.blogspot.com/2011/06/buying-edelweiss-mutual-funds-online.html
9) IDFC Mutual Funds:
http://prajnacapital.blogspot.com/2011/06/buying-idfc-mutual-funds-online.html
