Estate Living Magazine Issue 30 Smart Environments June 2018 | Page 14

Property Auctions
A fast, fuss-free option for seller and buyer
Following in the footsteps of the leading world markets,
where over 70% of property transactions are sold
on auction, South Africans are starting to embrace
the auction as a competitive way to dispose of their
properties.
The seller also gets to set a minimum reserve and,
should the winning bid fall short of this, he/she is not
obliged to accept the offer. More importantly, there’s no
ceiling on the maximum price the property can fetch.
Sure, an auction is a good way to pick up a property
bargain, but this is only part of the story. For both buyer
and seller, the benefits are compelling. Often, this means higher final prices than more
traditional methods of sale, says Van der Merwe, as the
buyers at auctions are serious. ‘They are aware that you
genuinely intend to sell your property, so they’ll compete
for the deal,’ he states.
‘An auction is an easy and efficient process for both
parties. There are no protracted negotiations, suspensive
clauses or intermediaries. And every transaction takes
place transparently and in the open, with terms and
conditions available for public scrutiny,’ says Jan van der
Merwe, director of BidEasy Auctioneers. The turnaround time for a property auction is as little as
three or four weeks between the mandate to sell and the
auction date, so the seller has the benefit of a specific
deadline.
The seller’s fee to the auctioneer covers inspection of
the property, marketing, advertising and catalogue
production costs. The auctioneer’s commission, if there
is a sale, is paid by the buyer,’ says Van der Merwe.
12 | www.estate-living.co.za
Van der Merwe also mentions: ‘There’s a high degree
of certainty that your property will be sold. In tough
markets, that’s a huge bonus. It typically takes between
eight and 10 weeks from the instruction to sell to the
registered transfer of an auctioned property.’