Auctions - Buyers
The benefits for buyers of properties on auction:
- Sellers are serious - properties that are up for auction are there to be sold, not to test the market
- Inspect the property - you can view by arrangement with the Auctioneer prior to the auction or during the viewing period on the day of the auction
- You decide - you know what you are prepared to pay and can decide when to stop bidding
- Terms and conditions are transparent - the entire process takes place in a public environment
- The true value of the property is realised - at an auction, you are likely to pay a realistic market price - or even acquire a bargain
- The process is fast - if yours is the winning bid, you will know within two (2) working days, whether the Seller has accepted your offer - the property is yours immediately transfer has been processed through the Deeds Office by the conveyancer
How to go about buying on auction:
- Identify the property you wish to bid on.
- View the relevant ‘Property Listing’- available online two to four weeks prior to the auction date.
- Additional information, where relevant, such as the conditions of sale, the title deeds, the site plan, the zoning certificate and information on any rental or lease agreements, is available from the Auctioneer.
- Ascertain when the virtual / online auction will expire. Bids will be acceptable up until then.
- Establish where the on-site auction, if applicable, will be held - most auctions are held on site at the property that will be auctioned, but occasionally they are held at larger or more convenient venues.
- Arrange to view the property in advance or, if applicable, set aside time to view the property on the day of the auction.
- Decide on the limit you can afford or are prepared to spend.
- Study the ‘Rules of the Auction’.
- Be aware that if your bid is successful, it is final and legally binding - it cannot be withdrawn or renegotiated and the conditions of sale cannot be altered.
- If your bid is successful, you will be obliged to sign the Offer-to-Purchase immediately (the Sales Contract).
- Auctioneer’s commission: Once the Seller has accepted your offer to purchase, you will be required to pay the Auctioneer’s commission - up to 10% of the purchase price (VAT may also be payable) - into the Auctioneer’s Attorneys’ Trust Account.
- Purchase price: Once the Seller has accepted your offer to purchase, you will also be required to pay a deposit of 10% of the purchase price and deliver guarantees on the balance of the purchase price within 60 days from the date of acceptance.
- Guarantees are for the Purchaser’s convenience only - if you are not granted a bond by the bank, you are still liable for the full payment, therefore ensure that you have made arrangements for the necessary finance.
- If you are married in community of property, ensure that you have a certified letter of permission from your spouse to participate in the auction, or that your spouse authorises the auction bidding with you.
- You can bid on behalf of a third party if you have a certified letter from the third party (on their company letterhead in the case of a business, accompanied by a certified copy of the resolution authorising you to bid on behalf of the company) granting you permission to do so.
- Prior to, or on the day of the auction, if applicable, allow yourself time to register as a bidder and to thoroughly inspect the property - as the property is sold in the condition as presented by the Seller on the date of the auction.
- Online bids are submitted electronically, from where they will be facilitated by a real broker.
You will not be permitted to bid on-site unless you have registered and can show your ‘bidder’s card’ with bidder’s number.