The recent auctions in Riyadh last week revealed the strength of the real estate market and the desire of many investors to take advantage of the real estate opportunities that appear from time to time, and the strength of demand contributed to a noticeable increase in prices, but for real estate prices in auctions to reach amazingly high prices that are not at all commensurate with the technical and quality specifications of the property; this is something that must be thought about seriously and quickly so that auctions do not lose their credibility, although some auctions represent good and varied occasions to hunt opportunities.

But what we saw and stood in the first diversified real estate auction to be held under the supervision of the Execution Court after Eid al-Adha, carried a lot of puzzling questions. But what we saw in the first diversified real estate auction held under the supervision of the Execution Court after Eid al-Adha carried many puzzling questions, as it was different from the expectations of real estate professionals, and the attendees were surprised that prices did not fall as expected, as the prevailing feature was the contrived bidding of some beneficiaries.

What we saw and witnessed in the first diversified real estate auction held under the supervision of the Execution Court after Eid al-Adha. <During our presence at the auction, we met many of those wishing to buy by bidding and asked them about their impression of the situation? They reported with great sadness, “We came to the auction planning to seize a real estate opportunity at reasonable prices commensurate with the market and we are fully prepared to engage in fair competition with our certified checks, But unfortunately, the prices jumped above our estimates. “Some added: ”We thought we would find opportunities if things are normal and balanced with the market, because of the expectations of falling prices, but all our wishes were quickly dashed when attendees started bidding.”

<Here we reveal important secrets that were the result of this unjustified rise in prices, and a questioner may ask in surprise, “The real estate is going down. Why are prices going up in auctions?”

<The information that is missing from many - unfortunately - in such auctions is that the attendees are not equal in terms of liquidity and ”cash", as there are those who bid and do not have cash ... How? <The bitter truth that negates the fairness of the auctions is that those who bid are the heirs, they do not buy with cash, and when he bids, he says, "I am one of the heirs and that's enough! This gives them additional power, so it is in their interest to play the music of prices until he reaches the price that satisfies his ambition as an heir before being a buyer, in addition to those who increase prices from those who do not intend to buy, only to inflame prices, and if the average buyer is not careful, he will be involved with them in drawing a distorted picture of the real estate scene. The auctions saw a good preference for strategic locations regardless of their current income, which may not exceed 3%!!!