The real estate market has seen a significant slowdown in 2023 due to rising interest rates.
To revive the sector, wealth management firms have explored declining auctions.
The principle is simple: every 30 seconds, the price of the good decreases rather than increases.
Traditionally used in agriculture, real estate is seeing declining auctions. The concept is simple: on the one hand, the seller of the property will set a virtually high price before gradually reducing it. It is up to the buyer to make the fastest offer in front of their keyboard and have a chance to receive it.
Let’s take the example of Mark that TF1 news follows. He wants to get a building plot of 530 m² in the heart of Besançon. Starting price: 115,000 euros. Each time the signal sounds, the price drops by 500 euros. And it rings every 30 seconds. Five buyers are lined up, so Mark is very stressed. “I’m sweating a little, my hands are sweaty,” He says in the report found at the top of this article.
Fast transaction
Price decreasing: 112,000, 111,000, 110,500… Mark wants to acquire this property for 110,000 euros. He clicks first, the ground comes back to him. Relief for this father. “In this period when there’s so much growth, it’s a beautiful thing to be able to get a property for less than what’s being offered”It reacts.
Mark and his relatives visited the place that morning. In less than 24 hours his life suddenly takes a new direction. “We see what kind of house can fit on this land,” delights his wife.
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With this new mode of purchase, land returns to market value. On the seller’s side, this ensures a fast transaction. Such will be the case for a 28 square meter house in Pontarillier, which is sold in just 10 minutes. An unconventional property, in raw condition, initially offered for 70,000 euros.
“You have to be opportunistic, be curious to find this kind of sale, have the courage to go out there and participate”, explains one of the potential investors, whose maximum budget is 50,000 euros. At the time of the auction, 30 people are engaged. And finally it is a person who will be the first to click on 61,000 euros. A very good sale by owner property
It is actually a solution that gives back purchasing power to buyers.
It is actually a solution that gives back purchasing power to buyers.
Pascal P, co-founder of a real estate buying firm in Besançon
Falling auctions are one way to boost a real estate market that is currently slowing. “Buyers have lost a certain amount of their budget as interest rates have taken up more space, so it’s really a solution that gives them back purchasing power,” Pascal Py, co-founder of the exclusive firm in Besançon, admits.
Ultimately, a virtual purchase offer has the same value as a paper offer. Once accepted, a sales contract must be drawn up before the final signature before a notary.
