Selling a property on auction offers many benefits
Expert auctioneer and CEO of Bidder Choice, Pieter Geldenhuys states that “an auction is an ideal and transparent process to use if you have properties you wish to sell. Not only is it one of the most accessible means to gaining a wide audience and closing a sale in record time, it also has a quick turnaround.” Furthermore, Geldenhuys explains that “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.”
Also, 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 their auctions through a range of media tools, such as print and online platforms giving them access to buyer’s databases. This ensures that the auction attracts the widest audience possible.
“Good interactions with the bidders at the auction allows the auctioneer to lead buyers into bidding the best prices for the property” Geldenhuys says. “A skilled and experienced auctioneer will always be able to maximise the value on auction within the true market value of the property. Therefore, if the seller is realistic with his expectations he can be assured that a good auctioneer will maximise the value of the property.”
Before the auction, a seller signs a written mandate which provides a reserve price that is mutually agreed upon between the seller and the auctioneer. This protects the interest of both the seller and auctioneer and ensures that the seller’s minimum and maximum asking price is taken into consideration.
If the reserve price is not met at the auction, the auctioneer concludes the auction at the closest bid, and the seller has a few days to either reconsider or accept the price that was achieved at the auction.