Private Real Estate AuctionsPrivate real estate auctions are emerging as a new transaction system stemming from the long period of recession in the real estate market. Private auctions are bing modeled on official auctions held by the court.
The benefits of private auction is that the dealings are easy and the procedures is simpler. Owners can sell assets quicker than a court auction because although private auctions maintain a minimum price they are more flexible with little time between auctions. In the court, if an auction fails to find buyers, the next auction is usually held after a month. The bad point is that the cost is more expensive and legal guarantees are weaker than court auctions.
Real Estate Mart, a real estate assets agency conducted the first auction last May and Torex quickly followed. Every time, more than 50 participants compete for 30 to 40 real estate holdings 30% are transacted. More than 10 auctions have been held in Seoul as of now. Once a seller seeks an auction, an agency publicly advertizes for a month and then holds an auction.
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