My personal experience in online auctions dates back to 2014 when I created a website for auctions, but I had no luck with the Ministry of Justice, and I did not return to it again, but I was sure that I would need it one day. I started thinking about running the site at the beginning of the Corona crisis, and currently, thankfully, I am working on improving the site and adding to it. In my opinion, the success of the idea depends entirely on the technical capabilities of the site, and then after that the way the auction is presented, and in general, online auctions have many positives compared to their very few negatives.

Losing part of the property owner's rights

If we assume that the property is sold through the enforcement court, the traditional method of selling the property is through an agent specialized in organizing auctions, and therefore his role is limited to advertising and marketing and may not succeed in many things, including not choosing the appropriate location, ignoring the application of the regulatory rules for auctions, and the marketing and advertising method is not appropriate and does not communicate the message to all interested parties; which is a reason for losing part of the rights of the original property owner, who suffers financial losses in addition to his bankruptcy and loss of property.

Features of online auctions:

1- Allow enough time for the buyer to study the real estate opportunity (usually 3 days).

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2- The real estate offer reaches the largest possible segment of interested people and anywhere, which is fair to the seller.

2- The real estate offer reaches the largest possible segment of interested people and anywhere, which is fair to the seller.

There are many more advantages offered by remote competition technology.

The technical workings of the site

There is more than one way the site works, and the data is entered by the webmaster, here are some examples:

I: Selected bidding method

In this method, the site can work with the time-limited bidding method and the LIVE bidding method, and the time-limited bidding is placing a property in the auction and specifying the bidding period as two or three days or according to the choice, so that the buyer enters any time during the specified period and bids before the expiration of the predefined date, while the live bidding is in the same moment directly and embarrassing (for those who said they like to hear the embarrassing sound in auctions), and the choice between these two options remains for the owner, whether a person, company, office or court.

Second: Three options for the sale or auction price

There are three options for selling or bidding on my site: There is a minimum bid option, a buy-it-now option, and the third option is the open bid (the minimum price is the price at which the auction starts, and it is 25% less than the appraiser's valuation, and the buy-it-now price is an option for the buyer to buy directly without bidding at the price set by the real estate appraiser and this is done by directly pressing the buy now button, and the open bid starts from SR 100 and the field remains open to sell to the highest price).

Open bidding.

The choice between these options is up to the owner and two of the three methods can be combined in one auction, either the first and second, second and third, or one of them, of course in the third method of the open bidding method the sale is compulsory to the highest price, and this is determined by the owner, otherwise the auction becomes a waste of time.

Third: Insurance payment methods

As for paying the insurance in the auction, it is to ensure the seriousness of the buyer, it has two options, either a specific value, or a percentage of the bid, meaning if you pay the insurance of 10000 SAR, you have the right to bid up to 200 thousand SAR, meaning the bidder pays 5% of the value of the amount he wants to bid on, these are just examples because they are controlled from the auction settings. As for the insurance, it is returned to the customer within a certain period of the end of the auction according to the method of payment of the insurance, there are several ways to pay the insurance, including bank transfer, bank check, Visa, SADAD, and currently there is a range and the bidder can use the insurance in another auction if he did not succeed in the previous one.

*Member of the Real Estate Committee at the Abha Chamber