According to the head of Pam Golding Auctions , Tania Smit , over the years some myths have been overshadowing some of the key benefits of this highly effective and simple method of selling property quickly . These myths also seem to be particularly prevalent in the higher-priced or luxury property categories .
“ Encouragingly , however , market evidence indicates that buyers are hungry for further knowledge about property auctions , as they increasingly empower them to make more informed real estate choices . This applies especially to the advent of convenient , fully on-line live auctions , where buyers can bid for a home and watch the excitement of the bidding process unfold without having to be physically present in the traditional auction room .
According to Smit , auctions are not only for financially distressed sellers or homeowners who fail to sell their homes via traditional estate agencies . As auctions are an effective way of reaching a number of highly-willing , qualified buyers . Due to the unique benefits of this sales strategy , auctions have become a legitimate choice for many home owners . The process is relatively quick , buyers often purchase with cash , with the added benefit that interested buyers could potentially bid the price up by significant amounts , sometimes even past the anticipated market value .
It ’ s a Bargain
“ Many properties sold through auctions are well maintained , quality homes sold in this way in order to reach a number of qualified buyers and achieve a faster sale . Some of these properties , including homes in high demand areas or luxury homes , are so sought after that they may well achieve prices beyond expectation . Furthermore , some high-end homes are so uniquely exclusive that this is in fact the best possible way of marketing and selling to a targeted audience in order to maximise the return to the seller ,” Smit says .
The Process of Buying
The journey of purchasing a property is not an easy one , it is still advisable that when one intends to buy property , they seek the relevant information . With buying through an auction , and if you are interested in a particular property , you will be invited to view the property privately with an agent or otherwise on a normal show day , as is usually the case with properties sold via private treaty . During this viewing you have the opportunity to ask any questions regarding the property . All the relevant information will be made available to you before the auction , with no obligation to bid should you decide not to go ahead .
The Prices
According to Smit , the role of price is critical in ensuring a satisfactory result for all parties .
“ An auction broker will therefore guide sellers through the process ahead of time to set realistic , market-related , reserve prices on their properties with a view to also setting an opening bid strategy to entice buyers to bid ‘ on the day ’, thereby creating a platform of competition and allowing the market value to prevail in the
SA Real Estate Investor Magazine MAY 2021 27