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Introduction

A real estate auction is an effective and innovative way of selling real estate property. It is an innovative marketing process through open business cry, competitive bidding that involves the interest of public sale of any real estate property, including those which are not distressed. Once an item is placed for sale, the auctioneer starts to form low prices to attract the bidders. Each time price increases until the new one make a new and higher bid and others are not willing to bid more than the recent bid and the highest payer takes the item or buys the item. The advantages of the auction are to buy an item from a bank auction at a reasonable price and generally get a discount on the market price. Essentially an auction is an economic mechanism that builds purposes to manifest the process of allocation of property and the arrangement of the process which is known as bidding.

An Auction Checklist

When an item is implanted for sale the auctioneer fixed the low price of the item which attracts a lot of bidders (Aldaej et al., 2018). The price of the item increases slowly until a new, higher bid makes by someone and no other bidders are willing to invest most than the recent bid and the higher bidder acquires the item. The four major types of an auction have been made by the auctioneer such as:

The Ascending auction
The descending auction
The first – price ,sealed bid auction
The second – price ,sealed bid auction

The Ascending Auction: As per the Ascending auction, the price and allocation are confirmed in open market. The bidders who are willing to buy an item and want to pay the most price that no other bidders are willing to pay.

The Descending Auction: The study of descending auction shows a procedure for auctioning multiple objects. The auctioneer announces the present price of the object and at that price bidders announce their demands.

The first – price, sealed bid auction: The first – price, sealed bid auction considers as common type in auction and it is also known as blind auction where all bidders submit hidden bid so that other bidder knows the bid.

The Second – price, sealed bid auction: In second – price, sealed bid auction bidders offers the highest price get a object in the second highest price.

Before you acquire any property, there are a few things you should keep in mind. When buying a real estate property, you should focus on the following points:

Need to discuss with the vendors about bidders requirement of registration

Requisition of one vendor Bid

Discussion with potential purchaser about the registration process :

Provide registration form

Identification proof

Clandestineness

Bidder’s Guide

Need to check the bidders will be present on auction day

Representative from bidders end will present in auction

Letter of Authorization need to be required if someone bidding on auction day

Availability of phone bidding

If a multiple auction happen then need to nominate person who will take registration

In office pre-registration forms

At open house preregistration form

Before Auction and during the option

From Agent end he needs to ensure the transcript is kept confidential

Do not disclose bidders record and information to the unattended

Distribute the OFT bidders guide

Auction Signage

Signature of Bidders in Registration

Arbitrary plight of Sale

Need to take bidders record

Need to take pen and pencils

Need to construct bidder’s registration table

Identify the agent’s registration

Bidders information –

Pre-registration –

Blank form -

Information of Dealer or auctioneer

The prescribe condition of the sale which adhere to

Before Auction commences reserve price to be received in written document

If a representative do the bid on their behalf ,need to announce that the bid is vendor’s bid

Need to take proposal from registered bid

While constructing a bid all bidders need to disclose their registration number

Agent will available with requisite documents to collect registration form

For at least three years bidder register need to be kept proplerly

A Detailed Script of Contract, Role of Auctioneer, and Property Features

Key Features of the Contract of an Auction

A vendor and a buyer enter into an agreement known as an auction contract wherein the seller promises to sell a product or piece of property for the highest offer and the buyer agrees to pay it. They happen between the bidder and the auctioneer as well. In an auction, there is one seller and several possible bidders, and the highest bidder wins the property (Balqis et al., 2019). In the auction process, bid competition leads to the ultimate sale, but it's vital to remember that if there is just one bid, that bidder has the option of buying the item. Negotiating, which was historically the way transactions were done, is where auctions got their start. Typically, there was no rivalry amongst potential customers in this (Cahyawati et al., 2018).

Role of the Auctioneer

An employee of the seller who manages a sale is known as an auctioneer. Typically, this is a specialist whose main line of work is managing auctions. A commission is used to pay the auctioneer. He is tasked with making bids to sell real estate to the highest bidder. There are rules that auctioneers must go by to avoid fraud, thus anybody cannot work as an auctioneer (Cortez et al., 2019). The state in which the auctioneer conducts business will determine these restrictions. As agents, auctioneers must represent the seller's interests and carry out his directives. An auctioneer's additional duty is to confirm that the item being auctioned is the seller's legitimate property (Franco et al., 2019).

In the auction, the auctioneer has a significant impact. The auction is planned and the bidding is controlled by them. To make sure they are aware of all the dangers and duties associated with their employment, you should go through everything with them. The property inspection before the auction is one of the auctioneer's responsibilities (He and Zhang, 2020). According to agency policy and statutory obligations, they must accomplish this. It will be essential to make sure the auctioneer gets the chance to examine the property before the auction day so that:

They can prepare the processes and confirm all pertinent details about the property.
It is possible to choose a good venue for the auction.
They might become acquainted with the property through the auctioneer.
The auctioneer will have the chance to gather any necessary data.

Features of the Property

The Langlee by Mirvac (Ivarsson, 2020) is a one-of-a-kind and exclusive opportunity to search for a brand-new magnificent home in the elite eastern suburbs, just a short drive from Bondi, Tamarama, and Bronte Beaches. The features of the property is listed below-

The Mirvac quality stamp is found on thoughtfully designed, spacious, and light-filled apartments with substantial balconies that offer a luxurious indoor lifestyle.
A wellness facility with a 20-meter pool, a sauna, and a dressing room will be available to residents only. A huge, two-story building with a third-floor gym that promotes both physical and mental wellness is where the healthcare facility is situated.
The social hub of The Langlee will be a grassy terrace with dining, relaxing, and barbecuing options with stunning ocean views.
The Waverley Bowling Club site was expertly transformed by Mirvac into 55 luxury houses and penthouse apartments for over 55, together with three unique bowling alleys, a contemporary restaurant, café, and bar.
There are residences with 1, 2, and 3 bedrooms as well as penthouse units in five intermediate structures. These residences have a range of vistas, including Melrose Field and the well-known beaches in the eastern suburbs, as well as ambient daylight.

A Contingency Plan for the Scenarios

Onsite Auction: Every outdoor event has to face the weather hazards, especially in Australia it is unpredictable for forecast announcers to tell about the mood of weather. As it can vary moment to moment, like one time it is a sunny day and other time it is raining heavily; there must be other challenges like heat waves, extreme UV levels and high winds (Leong et al., 2019). The last thing you want is to have to cancel your ideal outdoor event after months of preparation because there is a good risk of rain. The best course of action is to prepare for rain from the beginning and make sure the organizers have enough covered area, such as a pavilion, marquee, or tent, to keep your guests secure and dry. You should think carefully about whether you need the covered area for amusement (Lian et al., 2018).

Vendor Doesn’t Arrive: Vendors are responsible for delivering different things which will help to arrange the auction. But in any scenario, if the vendor does not arrive it will be hectic for the organizer; in that case, an organizer should be prepared with another plan. He/she can hire another person or can ask for fast delivery which will follow the staff that can help to place the things in its places (Qusa et al., 2020).

Conclusion

Most properties are merchantable in auction. Various items of real estate include home town, apartments and single family homes are industrial property, vacant land and even boat slips are also sold at auction. In auction all property is not suited for sale. If any property appeal to the narrow market, in that case auction is not effective method of marketing. In auction two third rules is the best marketing strategy. The strategy involves with the analysis property, market and seller situation and if two option of property, market and seller situation angular towards auction then the auction preferred to the seller as a sales option.

References

Aldaej, R., Alfowzan, L., Alhashem, R., Alsmadi, M., Almarashdeh, I., Alshabanah, M., Alrajhi, D. and Tayfour, M.F., 2018. Analyzing, Designing and Implementing a Web-Based Auction online System. ALDAEJ, R., ALFOWZAN, L., ALHASHEM, R., ALSMADI, MK, AL-MARASHDEH, I., BADAWI, UA, ALSHABANAH, M., ALRAJHI, D. & TAYFOUR, M, pp.8005-8013.

Balqis, A.N., Ramadhana, L., Wirawan, R. and Isnainiyah, I.N., 2019, April. Bid-Fish: An android application for online fish auction based on case study from Muara Angke, Indonesia. In IOP conference series: materials science and engineering (Vol. 508, No. 1, p. 012128). IOP Publishing.

Cahyawati, E. and Hanim, L., 2018. Legal Protection For Auction Winner Execution Of Liability Rights Auction No. 49/Pdt. G/2011/Pn. Pkl (A case study in Kospin, Pekalongan). Jurnal Akta, 5(3), pp.639-646.

Cortez, R.M. and Johnston, W.J., 2019. How to recover B2B relationships after a failed online reverse auction. Journal of Business & Industrial Marketing.

Franco, M.F., Scheid, E.J., Granville, L.Z. and Stiller, B., 2019, May. BRAIN: Blockchain-based reverse auction for infrastructure supply in virtual network functions-as-a-service. In 2019 IFIP Networking Conference (IFIP Networking) (pp. 1-9). IEEE.

He, L. and Zhang, J., 2020. A community sharing market with PV and energy storage: An adaptive bidding-based double-side auction mechanism. IEEE Transactions on Smart Grid, 12(3), pp.2450-2461.

Ivarsson, F., 2020. E-auction as a complement to IOCM-A case study from the automotive industry.

Leong, C.H., Gu, C. and Li, F., 2019. Auction mechanism for P2P local energy trading considering physical constraints. Energy Procedia, 158, pp.6613-6618.

Lian, J., Ren, H., Sun, Y. and Hammerstrom, D.J., 2018. Performance evaluation for transactive energy systems using double-auction market. IEEE Transactions on Power Systems, 34(5), pp.4128-4137.

Qusa, H., Tarazi, J. and Akre, V., 2020. Secure e-auction system using blockchain: UAE case study. In 2020 Advances in Science and Engineering Technology International Conferences (ASET) (pp. 1-5). IEEE.

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