WITH the advancement of technology and accessibility to the Internet, hybrid auction is gaining in popularity among bidders as a platform to get value-for-money properties and vehicles.
A hybrid auction allows eligible bidders to take part in an auction physically (on-site bidders) or through the Internet using electronic devices (e-bidders).
Over 150 on-site bidders and 50 e-bidders participated in the RHB Bank Mega Auction Fair organised by auction company Ng Chan Mau & Co Sdn Bhd in Kuala Lumpur.
Two auction rooms were provided for easy bidding of mixed properties and automobiles.
According to the company’s licensed auctioneer and business director Low Chee Hian, 130 mixed properties and 80 cars from all over the country were put up for auction.
Low said some of the mixed properties were priced over RM1mil, while the cars were priced between RM20,000 and RM80,000.
“The auction is held at market value and subsequently, the price can reduce if there is no bidder or take-up. It can drop up to 30% for a property.”
He highlighted that a hybrid auction offered bidders additional information such as market value of property, margin of savings that they might enjoy and brief descriptions of the properties such as whether it was occupied.
Registered bidders, who pay 10% deposit on the property value and RM1,000 deposit for cars, get their deposits back the same day if they lose the bid.
Low disclosed that sales of more than RM10mil for properties and another RM1mil for cars were expected during the less-than-two-hour bidding process.
He said mostly locals bought auction properties, while a few Singaporeans bought condominiums in Johor.
“In the past, we had buyers from China and Hong Kong (taking part in the e-bidding), ” he revealed.
He noted that there was public awareness on e-bidding and there was a 10% increase in e-bid participation for the auction because of its benefits.
“It is transparent and safe as they can bid from any location.
“They can conduct online transfer without a bank draft for any property.
“It is more convenient for e-bidders for transfer of vehicle ownership.
“Upon the fall of hammer (at auction), sale is concluded and the purchaser can immediately proceed with change of ownership, ” he added.
Low said the bidding process also benefitted distressed borrowers or owners of properties who chose to sell at auctions.
“We organise 15 to 20 auctions per month, with the assistance of various banks.
“We also have bidder support centres in Penang and Johor, ” he elaborated.
However, he advised, “Newbies should be more mindful when they want to bid and it is good to deal with licensed auctioneers directly.”
Low, who has 18 years of experience in the auction industry, told reporters that property investors could find good bargains at auctions.
Property consultant Joe Lai, 32, was successful in bidding for an apartment in Damansara Damai for RM356,400.
“The market value for this apartment is RM550,000. I help my clients by buying various properties through auction.
“My clients enjoy getting properties at below market rate.
“The process is very simple. It is very exciting as you compete with others and the price is very attractive.
“If you don’t bid with emotion, you can get a good price, ” said Lai who has participated in a few auctions.
Another successful bidder was businessman M. Kovend, 27, who obtained a condominium located off Jalan Sentul Pasar for RM270,000.
“It is an easy and fun process, ” said Kovend, a first-time participant at the auction.
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