Setting a new platform in buying and selling properties, OB is expected to cast out the stigma of forced sell and foreclosure.
According to Srishanbid.com, "Open Bidding, an open auctioning event has since then helped people in Malaysia own their dream properties but with more affordability and less problems."
"Both buyers and sellers are more contended with the transactions they have made using this new concept. Open Bidding is a relatively new concept in Malaysian property industry. The same has already proven its worth in other countries."
Shanmugha Nanthan, Managing Director of Srishanbid.com, noted that a hassle free and quick manner OB was carried out by his company last week, selling RM3.765 million worth of properties in just 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," he said.
"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."
Shanmugha said that OB would curb attempts to manipulate prices during an auction, normally performed by syndicates to distort the real estate market.
He added that in an OB, the reserve price of property under auction will not be revealed to bidders in order to prevent 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."
"Open bidding is the best solution to weed out the price manipulators," he added.
In addition, Shanmugha noted that due diligence is conducted by his company’s lawyers in OB to ensure that the 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."
Michael Geh, Senior Partner at Raine & Horne, noted that OB is a healthy practice in Australia that contributed to the growth of the country’s property sector.
His company has partnered with Srishanbid.com in conducting OB to boost the property auction market.
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