ACQUIRING
Acquiring a Property via Auctioning
The Auctioneering Opportunities
BY DREW HOOK
T
he property market is one of the
fastest growing categories in the
auction business in South Africa today,
with a success rate of over 70%. Accelerated
marketing or auction is no longer thought of
as a last resort, with many of the world’s largest
companies now use the auction method of
accelerated marketing as a tool of rapid and
positive change, with public auctions as the
property owner’s first choice.
The Auctioneering Opportunity
Selling property now, as opposed to later,
guarantees more money in your bottom line.
The accumulated cost associated with holding
your non-performing mortgaged property,
such as interest, taxes and maintenance, are
often over looked and can take a large portion
of your bottom line revenues.
When a house is put on auction, buyers come
together for one competitive bid process. Your
property is exposed to a detailed advertising
& marketing campaign, resulting in a public
event on a specific day. By selling your property
at auction, every interested buyer will make
themselves available with money in hand on
a specific day and the asset conversion process
is so precise you even know what day to make
your deposit.
The Auction Process
The time to for action starts when the
auctioneer announces your lot. The auctioneer
will only register bids if the auctioneer sees a
definite gesture, no scratching of the nose and
such. The bidding process is quite organised
22 Residential E-Book 2016
with the auctioneer only ever registering the
bids of two people until one drops out and
then they look for another bidder. Telephone
bids are quite common with someone from the
auction house bidding on behalf of the person
on the telephone.
Often the auctioneer will open the bidding
with one person making a bid and then no
other bids until the auctioneer has announced
the property will be sold on the third and
final asking. At this point just as the hammer
is about to come down someone makes a bid
and the bidding war starts. Once a successful
bid is placed there will be some forms to fill
in and the deposit to be paid plus a fee to the
auction house. The balance of the mone