Anticipating reverse real estate auctions

The developer company Pivdenzakhidtransbud announced the launch of a unique, for the Ukrainian market, mechanism of selling residential real estate — the so-called reverse auction. The real estate company ARPA Real Estate that provides professional support for developers will organize it. According to the managing director of ARPA Real Estate Mykhailo Artiukhov, “a reverse auction is a new way of buying a residence or a suburban house that differs from the auction as we know it, because the asking price is lowered. As a result, the final price of the object bought at the reverse auction can be 20-30 percent less than the asking price.” “At present no developers hold reverse auctions in Ukraine, though it’s more appealing for consumers to ‘beat down’ the price and thus influence the process, reaching the desirable result. Therefore we expect the auction to not only be the first of its kind [in Ukraine] but also to be successful,” Artiukhov said. “Reverse auctions selling real estate are held in accordance with a schedule, which includes a guaranteed flows of funds and opportunities, and, as a result, a more stable standing on the market,” explains Denys Halitsyn, a representative of the sales department at Pivdenzakhidtransbud. Moreover, according to Halitsyn, a reverse auction is a good opportunity to draw attention of all customers and not only those who are ready to postpone a purchase in order to buy cheaper. The auction will be held on October 7, with 10 objects for sale.