This is the question we hear every day. In this article, we will explain the advantages (and disadvantages) of arranging an auction on your immovable property.
The popularity of house auctions, are growing in South Africa. Most people gets scared when they hear they have to "auction" their house, because they think of it as a sheriff auction and they think they won't get anything for their home. On the buyer's side, they think they will be able to buy the house for next to nothing. Both these scenarios are incorrect, as the private auction route, is just another way to sell your property quickly.
There's really only one disadvantage of having an auction, and that is that the seller have to carry half of the marketing costs before the auction, which in the end, is well worth it. This cost, depending on where your property are, covers advertising boards erected in the area, social media campaigns, email & sms campaigns, and listings on the biggest property websites.
The advantages of a private auction, is really very straight forward.
We have auctions all over Gauteng and even outside of Gauteng, which means that we concentrate on your property only. The chances that we have 2 auctions close to each other in the same area, around the same time, are very rare. So our Marketing Campaign focus on your property alone in the area which make it much more concentrated.
Also, the auction viewing takes place and hour before the auction. Interested buyers will gather at the property on the auction date and time, which means the buyer can see what they will be buying. This is also in favour of the seller, because there's no people walking through their house during impossible times to view the house.
Anyone can give a signed offer, but does this buyer have an approved bond already or does he still have to apply? This is why the auctioneer takes a 10% deposit from the highest bidder on the day which means this buyer is serious and probably already has an approved bond. The seller has a specific time to approve the offer, depending on the agreement with the auctioneer.
We also auction the house 'as is'. So they buyer buys what he sees on the day. The buyer cannot make any claims afterwards.
We hope this answer your questions regarding Private Auctions.