Auction: An Explainer
In an auction, a real estate asset is sold to the highest bidder.
PropGuide Explains Auction
In an auction, buyers bid for a real estate asset. They compete with each other by bidding up the price of the asset by quoting a higher amount. At the end of the auction, one buyer who is willing to pay the highest price is allowed to buy the property.
In an auction, sellers may have the right to decide the reserve price below which,the asset would not be sold. In an absolute auction, sellers is compelled to sell their property at the highest price quoted in the auction even if it is lower than the price at which they are otherwise willing to sell. Foreclosed property is auctioned in many parts of the world.
At times, urban local authorities such as Mumbai Metropolitan Region Development Authority (MMRDA) auction vacant land parcels. Bodies such as Delhi Development Authority (DDA) and Defense Ministry auction vacant land parcels, too.
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