Real Estate Investor Magazine South Africa June/ July 2019 | Page 23

with most cases this will also reflect the reserve price of the property
the fact that our sales are non-suspensive. Misconceptions are that
unless there is a further creditor or liquidator’s approval required. bidding aggressively will intimidate other bidders, or that dragging
Once the opening bid is met, the property is on the market and the
out an auction with low bids may cause other bidders to lose
highest bidder will be the successful purchaser.
interest – neither of these is the case. Remain calm and do what
A registration fee for potential buyers on Bidx1 is required and
you feel comfortable with.”
varies depending if a liquidator or bank requests a higher deposit
The bidding opens on all lots at the same time on the day of the
or even a lower deposit. Bidding registration opens a week prior to
auction and the opening time is clearly advertised across all lots.
the auction and it is not advisable to leave it to the last moment to
The closing time for each lot is different and is indicated on the
officially register. Successful bidders will have to deposit 10% of the
relevant lot page.
opening bid amount immediately to secure the property.
If a bid is placed within 60 seconds of the lot’s closing time, an
“Unlike the private treaty process, all the auction properties
additional 60 seconds will be added. This is known as an extension
are sold without any suspensive
period, during which any further
conditions, so if you are the successful
bid that is placed will result in
bidder, a legal and binding contract
the clock re-setting again for
has been formed and you are legally
further 60 seconds, giving all
“Before participating in an on-line a registered
obliged to complete the sale.”
bidders a fair and equal
Potential buyers must have the
auction, I strongly recommend that opportunity to place another bid.
necessary finance available for the
This will continue until a full 60
you physically inspect the property seconds passes with no bids being
purchase, either by pre-qualification
through a bank or with ready funds
at one of our show-days, download placed.
on hand.
To account for various internet
“The guarantees are generally due and fully understand the conditions and computer connection speeds,
around 30 to 45 days from date of
are advised to make a bid
of sale and read all the relevant bidders
acceptance of your offer, which leaves
at least 15 seconds or more before
you with reasonable time to apply
information regarding the specific the bidding closes.
for finance. However, the sale is not
“In the current buyers’ market,
property of interest, all of which are where stock is abundant but
subject to the purchaser obtaining
finance or bond approval,” said du
available for each property on our purchasers are in short supply,
Toit
there is downward pressure
website,” said du Toit
Du Toit advises that buyers must
on property prices, creating a
decided how high they are prepared
situation which empowers buyers
to bid in order to secure your desired
to negotiate strongly on price. The
property.
auction method of sale is highly efficient in these market conditions,
The online Bid1X website allows uses to set a maximum bid, as it creates a platform where buyers can freely negotiate at that
meaning their computer will enter bids for you only as it becomes
specific point in time, up to the level that they feel comfortable
necessary to keep your position as the ‘winning bidder’ and to a
with, thereby creating a true and fair reflection of the market value
restricted price that you have set. Users maximum bid cannot be
of the particular property. The final price achieved may even exceed
viewed publicly and only the user knows how high they are willing
the seller’s expectation.”
to bid.
Du Toit says explains that there is a key advantage for buyers
“My advice is to do your homework upfront and know what
purchasing and bidding online.
you can afford and are willing to pay for a property, by virtue of
“Never before has the adage ‘the only reason a property doesn’t
sell is because it is priced incorrectly’ been truer. A major advantage
of the auction process is that it defines this ‘sweet spot’ through
buyer demand on the day, thereby achieving a fair market-related
price.”
Chief Executive of Pam Golding Propety Group, Dr Andrew
Golding and is a JV with BidX1 South Africa comments on the
use of online auctions for property in South Africa.
“There are many facets to property transacting, and this
convenient, on-line property trading platform provides both sellers
and buyers with another opportunity to sell or acquire property
in a quick and highly effective manner on a specific set date, at a
time when one is assured of an outcome. It’s yet another string to
our bow in enabling us to offer clients a further option, in addition
to our private treaty sales, which may suit their own particular
requirements at a specific point in time.”
The next online property auction is scheduled to take place on
3 July 2019, with the catalogue live and available on 31 May 2019.
Interested buyers can visit bidx1.com/en/south-africa.
“
“
SA Real Estate Investor Magazine JUNE/JULY 2019
21