Trend can curb syndicates profiteering activities
A new trend in property auction – open bidding – is set to cast out the stigma of foreclosure and forced sell, and it turn it into the preferred way to buy or sell properties.
Srishanbid.com managing director Shanmugha Nanthan said a hassle free and quick manner open bidding was conducted by his company last week, transacting RM 3.765mil worth of properties within 30 minutes.
“Open bidding which is usually auctioned by owners soon catch on and become the first-choice method of sale for many people seeking to sell their homes, vehicles, land, and art to get the real market value of their properties.
“Though open bidding is new in Malaysia, it is an accepted practice in matured markets in Australia and in the United States where over US$30 billion (RM98 billion) worth of properties were transacted last year,” he said.
Shanmugha said a decade of watching how syndicates manipulated auction prices resulting in sellers not getting a fair price of their properties and how they “intimidated” bidders to stay away had prompted him to look for a viable alternative.
He said in open bidding, the reserve price (minimum listing price for transaction) of property under auction was not revealed to bidders to curb the syndicates profiteering activities.
“By providing an indicative price as a guide, it has discouraged syndicates from moving in as they would not know at what prices the properties under auction will be transacted. This has attracted only genuine buyers and sellers to open bidding,” he said
Shanmugha said in open bidding, due diligence would be undertaken by his company’s lawyers to ensure that property under auction were free of encumbrances.
“The onus is on seller to resolve any issue before the transactions at open bidding will be concluded,” he added.
Raine & Horne senior partner Michael Geh said open bidding was the norm in Australia and a healthy practice that contributed to the growth of the real estate sector there.
He said his company had partnered with srishanbid.com to conduct open bidding to help grow the auction market.
Interested sellers can access Shanmugha’s website www.srishanbid.com and register as a member and list their property there.
For buyers, they can access the website and choose the property they are interested to bid and register themselves as a bidder by paying two percent deposit on the indicative price displayed before attending the open bidding proper.
Their deposits will be refunded the same day when they are not successful in their bids.
4 comments
Watch out for "DUMMY BIDDERS" who push the price higher; believe me, you could get your fingers burnt. I was once a property consultant for a well-established real estate company down under. The practice of using "Dummy Bidders" is still alive today, even though it is illegal. Knowing how things are generally done in Malaysia, I would not put it past them to use it. One can 'suap' anybody, when money matters most.
You are right Yunos. This system is not fool-proof. In fact, you could get your fingers burnt anywhere anyhow if you do not do your home work when buying properties or buying anything at all. There are greedy people everywhere (agents, speculators, dummy bidders, doctors, lawyers etc) ready to compromise integrity for money. Capitalism at its finest!..:)
I think it's a new way of selling and buying properties.Sellers will have a wider market and get a better price compared to a sale thru real estate agent.Buyers of course have to do some homework on the price before bidding.It all depend on us.It's our choice.We must protect ourselves.
SRI
I see it as a new way to sell and buy properties.Buyers of course have to do ur own homework on the price.Sellers have a wider market to sell the properties.It all depend on the consumer's choice.But overall this open bidding is to the advantage of consumers.If u compare with the public auctions which is always manipulated by syndicates,i think open bidding will be transparent.
SRI