Part of the auction platform’s attraction for sellers is they pay no commission and receive non-suspensive cash offers.
The auction platform is becoming a popular space for quick property sales, but is not limited only to distressed properties. There is a common misconception that auctions sell only distressed properties, says Leon Breytenbach, national manager of the Rawson Property Group’s commercial division.
“The process of auctioning is short and quick, but no less dignified.” Rawson Auctions saw a large and steady volume of properties being auctioned in the 2018/2019 financial year.
The past quarter especially saw a “significant increase” in both the number and quality of properties being auctioned, says Zain Amod, general manager at Claremart. Part of the auction platform’s attraction for sellers is they pay no commission and receive non-suspensive cash offers. Properties also sell quicker.
“For example, you can sell your property in four weeks or less, which would particularly appeal to a seller who wants or needs to sell urgently.” The process is transparent as one can see exactly who is bidding and what offers they are making. For these reasons, the number of properties going to auction is “definitely increasing” each year, says MC du Toit, chief executive of auctions and sales for BidX1 South Africa.
“Auctions are becoming a more popular method of sale. An auction will facilitate an offer on a set date. The auction creates a platform where buyers can compete for the property, which will then ensure that the seller achieves the best possible marketrelated price at that given time.”
Breytenbach says both auctions and traditional sales are likely to fetch a good price for a property, provided the asking price is reasonable. “If the asking price is unreasonable the property is unlikely to sell at that price, regardless of how it is being sold.”
Amod says properties are worth what the market is prepared to pay. “When sellers have realistic expectations they are likely to be happy with the outcomes. In some cases, Claremart has sold properties well above the mandate price.”
Du Toit says: “The price is determined through buyers competing, which will by its very nature produce the best possible result. “If the sellers have a realistic expectation, they will achieve their price and even exceed it.”