WORDS: ANNE SCHAUFFER IMAGES: SHUTTERSTOCK
Auctions have been around for hundreds of years with over 80% of properties in Australia being sold via this method,” says Ari Ben of AuctionInc.
“We’re seeing more and more sellers catching on to this trend due to the swift finality achieved by the auction process – we’ve seen properties on the market for over six months sell on our platform within three weeks. The key is to use a reputable and professional auction house that understands how to market the property effectively.”
Tanya Jovanovski, franchisee of Rawson Auctions Western Cape, suggests, “Sellers must do their homework on which auction house to select. If it’s not a well-established company, ask for references from previous sellers, and check the auctioneer is qualified and registered with the EAAB (Estate Agency Affairs Board), and SAIA (South African institute of Auctioneers).”
MC du Toit, CEO: sales, BidX1 South Africa, discusses their online auctions, “Bidding can take place from anywhere in the world, on any desktop or handheld device. You will no longer miss out on bids, as the auction will be accessible to everyone.” BidX1 has a full support team that takes all bidders through the bidding process with examples of what happens when bidding starts, so buyers will be able to run through a bidding simulation before the auction.
“Bidders feel less pressured during an online auction as this is conducted in private, not in an auction room where some feel pressured by other bidders.” He unpacks the process, “Prospective buyers are advised to physically inspect the property at a show day. Every bid placed during the sale of a property is logged and displayed in real time and this record, along with the sale price, can be viewed publicly on our website, both historically and at the time of the auction, with the transactions all happening online. This benefits both sellers and buyers. The process is transparent, as everyone can see the bidding as it unfolds. It’s also recorded, so anyone can view the bidding for properties sold via our previous online auctions.”
He continues, “BidX1’s online auctions are safe, as bidders have to register first and provide Fica documentation as well as source of funds, eliminating any fictitious bids being placed.”
Any negatives to auctions?
“The auction process is fast-paced,” says Ben, “and purchasers can get caught up in the excitement of the auction. It’s strongly recommended purchasers do their homework, and when they arrive at the auction, are confident they’ll be able to raise the necessary finance required to purchase the property.”
Speed is of the essence. “We can auction the property within three weeks of receiving the signed mandate and information pertaining to the property,” says Jovanovsky. She warns purchasers not to get carried away and bid more than they can afford. “An auction is a non-suspensive sale and you are obliged to comply with the conditions of sale and rules of auction.”
Ben says, “The auction process results in serious buyers submitting non-suspensive bids, whereas the traditional method of sale generally involves a back and forth process with offers conditional on a myriad of suspensive conditions.”
And the price achieved?
“This online auction method is an ideal way to achieve a market-related price for your property by bringing together all serious buyers at one time, on the day. If there’s a high demand for a property, this will drive the price upwards and create the competitive environment where the buyer who wants it the most and is prepared to pay a fair value, will ultimately be the purchaser,” Du Toit says.