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By George Mouskides
Until about a year ago forced sales could take place only through the Lands and Surveys Department. Based on new legislation, banks can now go through with sales using a procedure of their own and without having to involve the Lands Department. Sales based on the new legislation kicked off in June 2016 all of which were forced sales and could materialise usually without the owner’s consent.
We propose a different kind of auction. This is a private auction, again without the involvement of the Lands Dept. and with the consent of the owner.
Some of the benefits and conditions of the FOX private auction are the following:
1. This is another very effective promotion method.
2. The procedure is carried out by FOX and the owner does not have to deal with any unnecessary hassles.
3. There is a reserved price known only by the owner and FOX (this could change during the procedure).
4. The auction starting price is usually lower than the reserve price and is known by all concerned.
5. The property is free for viewing 15 days prior to the auction and all information is available to all interested buyers. Usually 3-5 days before the auction an ‘open house’ is arranged for all interested to inspect the property again.
6. The FOX private auction process does not usually take long, the maximum period being around two months and termination date is the day of the auction. This is convenient for owners in a rush to sell
7. This method draws the attention of buyers as it is dynamically promoted through our company’s communication channels (website, newsletter, Facebook, YouTube, newspapers, portals etc).
The procedure usually generates competition between buyers, something beneficial to the owner.
All of the above are some of the benefits/conditions of the FOX private auction. The main difference between auctions by FOX and those of banks is that we choose which properties to promote, making for a more attractive option to buyers.
The interested buyers are provided with all relevant information about the property and its characteristics and are invited to visit and inspect the site whenever convenient to them, before the auction. As opposed to the forced sales where most likely the owner will not open the door to potential buyers.
Finally, the seller can lower the reserve price based on the interest from buyers, the result being that an interested buyer can buy at a really attractive price.
Unfortunately not all properties are suitable for FOX auction.
George Mouskides is General Manager, FOX Smart Estate Agency and Chairman of the Cyprus Property Owners Association (KSIA)
