Auctions - Sellers
Selling on Auction
The Online Auction “Silent Auction” in real estate is gaining momentum as the preferred buying and selling approach. The approach when compared to the traditional approach has the potential of unlocking true market value of the property within 21 days. The process is quick and efficient and is the final point of decision. Pre-qualification of finance is required.
Consider Silent Auction:
- There is no limit on the upside potential. Eliminates guesswork in determining the asking price of the property.
- It realises assets fast. It is a showhouse with a result. Results can be expected within 21 days or less.
- It sends a strong signal to the market and generates responses from more than one buyer.
- The advertising is aggressive and high profile, eliminating underexposed sales.
- This approach is not dependent on finance and other deal breakers. Pre-approval of financing is essential.
- Bids have to be submitted within a specific time period. Seller will then negotiate with highest bidder.
A private treaty sale is between agent / owner and buyer.
Property Auctions in South Africa
It used to be that auctions in South Africa were held to dispose of contested properties in cases of deceased estates or divorce - not so anymore!
In the past four years, auctions have gained substantial credibility as one of the most efficient means of selling a property - and have grown into a mammoth business model that moves property quickly, efficiently & profitably.
Houses on Auction attract qualified buyers - people who have the means and the desire to purchase the property. This means no more Sunday afternoon ‘strollers’ who have nothing better to do than look at show houses!
Property Auctions create urgency - a time is set for the auction to take place and buyers compete assertively to win the bid.
Where conventional sales generally start with a high price and then consider offers that are lower than the asking price, with auction properties it works the other way around. A well marketed and well-run property auction demonstrates the value of the property and eager bidders push the price up so that the real value of the property is realised.
Property Auctions generally result in quick sales - no more listing on the conventional market and then waiting weeks or months for offers to come in. They also result in a quick close as the property is sold ‘voetstoots’ so there are no conditions attached to the sale.
Homenet facilitates a combination of conventional property sales and auction sales - as well as customised services somewhere in between; the best of both - personalised to each individual’s specific needs.
The benefits for sellers of property on auction:
- The process is fast - once the Auctioneer is commissioned to do the job, the property auction generally takes place within thirty (30) days.
- Auction houses attract qualified buyers - the people at property auctions have the means and the desire to purchase the property.
- Auction sales create urgency - a time is set for the house on auction and buyers compete to win the bid.
- Terms and conditions are transparent - the entire process takes place in a public environment.
- Your interests are protected - you specify your reserve price.
- The true value of the property is realised - interested bidders compete with each other, often resulting in a sale that exceeds your expectations.
- The auction process is conclusive - once the hammer falls, you have two (2) working days (the Confirmation Period) in which to accept the offer, after which the deal is done with the winning bidder.
- The final bid amount is the amount you, as the Property Seller, will get - the winning bidder pays the Auctioneer’s fee, which is negotiated with the buyer and paid over-and-above the final bid amount.
- Property Auctions allow you to realise profit on an investment - this way you can move to a larger, or smaller property, make a lifestyle change, or realise the cash flow you need for other business priorities.
How to go about selling on auction:
- Contact the Auctioneer, Broker or Consultant to arrange an appointment
- Have a copy of your ID document, proof of current residence, your title deeds or a deed search, and any other relevant documents available
- Should you have a minimum price (the reserve) that you would be prepared to accept, this will be discussed and be agreed upon
- The marketing of your property will be discussed and an agreement will be reached on the campaign and the cost thereof, which is the only cost you will be required to pay
- You will be required to complete an agreement (Auction Listing Agreement) between yourself and the Auctioneer, granting the Auctioneer permission to market and auction your property