If you have properties to sell you should consider an auction since it is a transparent process and one of the most accessible means to gain a wide audience and close a sale in no time, according to expert auctioneer and CEO Pieter Geldenhuys at one of the country’s leading auctioneering houses, Bidders Choice.
“One of the biggest benefits to selling a property on auction, whether you’re a private seller or do it as a business, is a quick turnaround,” Geldenhuys explains. “Dates and deadlines are set right from the start. You have a fixed date for the auction, and buyers and sellers know that this is the date for decision making.”
Additionally, a seller does not have to sacrifice a portion of the proceeds to pay sales commission, since auctioneers do not get commission on their sales, unlike estate agents
Auctioneers advertise auctions widely through multiple media, such as print and online through platforms and have access to buyers databases. This ensures that the auction attracts as wide an audience as possible.
“Through good interaction with the bidders at the auction the auctioneer will lead buyers to bid towards the best possible price for the property,” Geldenhuys says. “A skilled and experienced auctioneer will always be able to maximise the value on auction within the true value of the property. If the seller is realistic with his expectations he can be assured that a good auctioneer will maximise value for the seller.”
Before the auction, a seller would sign a written mandate, providing for the reserve price mutually agreed between the seller and the auctioneer. This protects the interest of both seller and auctioneer and ensures the seller’s minimum and maximum asking price.
If the reserve price is not met on the auction, the auctioneer would conclude the auction at the closest bid, but the seller has a few days to either reconsider or accept the price that was achieved on auction.