The correct (real) price is determined through bidding via auctions

Determining the real value of the property (real estate, enterprise, restaurant, land plot, hotel, etc.) in a business trade process is really difficult in Georgia.

The owner (the seller) of the property often values the object being under the sale, higher than its real price is, while the buyer is always willing to purchase it at a much cheaper price. In cases like this, the difficulty is to find a neutral appraiser, trusted by both parties.

The ideal option for the real (so-called market) price to be determined, is bidding in the form of an auction. Particularly: at the initial stage the property is sold at a certain fixed price, if the buyer does not appear at all, this means that the market (real) value of the property is rather lower. In the frames of the following stages, the property is sold at the discounted price i.e. at a price, characterizing its actual worth, which is a so-called market value of the property.

For example: if the average market value of a property is 85,000 US dollars, and at the initial stage, the owner started bidding at a price of 100,000 US dollars (bearing in mind the probability of property sell) but no candidate appeared, at the following stage the property will be sold, let’s say, at 35% discount - 65,000 US dollars, i.e. below the market value (probably). In this case, if the property is really worth of 85,000 US dollars, many potential buyers will have a willingness to participate in an auction process, and since majority will logically wish to purchase a property at market value, it will be sold for at least 85,000 US dollars.

Biddings at auction, often provokes (sporting) interest in purchase of the property, winning in a competitive environment, which often results in real estate being sold at a price significantly higher than its market value is.

Note: The property at the bt.ge auction is sold only at the initiative of the owner. Seized or disputed property is not sold with us.