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These days, more and more people are seeing the value in putting their house on auction rather than up for sale in South Africa. This is not surprising, considering the multiple positive aspects for both sellers and buyers.

Here are some of the benefits for putting a house on auction:

Sellers

Buyers are prepared

Rather than seeing a great deal of foot traffic through a home comprising mostly of curious neighbours and relaxed Sunday viewers, an auction attracts people who are truly looking to buy. Buyers are serious about putting pen to paper to purchase a home and so there are no time-wasters.

Quick Sale

The months of going out on a Sunday afternoon or having strangers through your home 3 nights a week after a long day of work are gone. House auctions take place on a single day at a given time. This has numerous positives: for one, sellers know exactly when their homes will sell and so can plan their own home-buying accordingly. Secondly, a quick sales process means that rates and taxes do not need to be paid by the buyer for extended periods of time while waiting for an offer and a deal.

Deposit

House auctioneers require a deposit amount to be paid at the fall of the hammer and so the guarantee and good faith is there immediately.

Commission

While sellers pay the estate agent’s commission on a standard sale, this typically becomes the responsibility of the buyer during an auction.

Buyers

Transparency

The auction of the property is always entirely open and transparent. This includes defects within the property, as well as competition with other buyers.

Negotiation Periods are Shortened

Once you’ve seen the home of your dreams, you do not need to enter into drawn-out negotiations with the seller and the estate agent, and so the home can be yours within no time. This also extends to the benefit of knowing exactly when the purchase date is, and so buyers can plan finances accordingly.

Serious Seller

With property sales, the buyer can be at risk of dealing with a seller who is not serious and is either testing the market, or who will only sell if he/she receives an above market value offer for his/her home. However, with a house on auction, the buyer knows that the seller fully intends to sell their property. This also means that the buyer will pay a price for the home that is fair to all parties involved.