SALE OF REAL ESTATE

Abstract

In the real estate business, selling is one of the most important aspects. Unfortunately, not everybody in the real estate field comprehends all the methods of sale available. Many properties are being disposed of by the traditional method, that is, by private treaty sales. In addition to this well known method, other methods available are sales by auction and sales by tender. This dissertation attempts to study in particular sales by auction and by tender, in view of the fact that these two methods are not fully exploited. The role of an appraiser is also discussed in relation to this aspect on sale of real estate. The characteristics of both sales by auction and tender are examined and compared. A more detailed study is then carried out on sales by auction, with a discussion on aspects, such as, volume of sales and the trend prevailing in the market. A brief analysis on the issue of auction price being indicative of open market value is also included. Next, the study focuses on selling by tender; it briefly describes the procedures involved in carrying out a sale by tender. A case study is included to highlight this respect. The acceptance of this particular method of sale is met with much resistance, and a survey is carried out to show the number of properties being put up for sale by tender from the second half of 1984 to the first half of 1985. It is hoped that this dissertation would give a better understanding of the three methods of sale prevailing in our real estate market. However, it should be noted that a study of this nature is limited in scope by reason of a number of constraints and, therefore, it is not intended to be an exhaustive exposition on the subject.