REAL ESTATE AUCTIONS & ITS MARKET

Abstract

This dissertation examines the market perception of auctions, observing particularly the level of market awareness and resistance towards this method of sale. In addition, it studies the effects of the market's social behaviour on the local practice of real estate auctioneering and explains the implications The common belief that real estate auctions are related to distressed properties is no longer the main factor which causes people to shun auctions. In fact, most people avoid selling their properties via auctions as they appear to be more familiar with sale by private treaty. In other words, they tend to make decisions based on the familiarity factor It is thus important to expose the average man to the auction procedures so that he is able to make a more informed decision as to the best mode of sale for his property. Interestingly, it is discovered through the surveys that while a minority of the interviewees try to be rational in their decisions and not be over-excited by so-called 'auspicious' numbers such as $888,000, the psychological impact of 'inauspicious' figures is so great that they simply avoid bidding at such price levels. On the other hand, while some people may not personally subscribe to such superstitious thinking, they expect the general public to avoid buying properties during the 'ghost month' Therefore, they will not initiate any auctions during the lunar seventh month period. The study concludes by looking into real estate auctioneering as a career As compared to other real estate professions such as property management and property valuation, auctioneering is a relatively unexplored field. With the increasing use of auctions to sell real estate, it is expected that the industry will require a pool of licensed auctioneers in the years to come Therefore, real estate auctioneering is a niche career in the local real estate industry.