Century 21 Auctions
Auctioning is an often ignored, but very successful way of selling ones property.
Benefits
1) Sense of Urgency; Auctions generate a sense of urgency, with all the
buyers together on a given date and time which compels potential buyers to
make a decision on the day.
2) Competition Amongst Buyers; At an auction, competitive bidding
amongst potential buyers means that the selling price often exceeds the
expected value of the property, maximising the sale price for the seller.
3) Reserve Price Protection; An auction provides sellers with
protection in the form of a reserve price. This means that your property
will not sell unless bidding reaches a pre-agreed level. Further, there is
no ceiling price, so you have the opportunity to achieve a price well above
your expectations especially if there is a competitive crowd.
4) Set Terms; Auctions are suited to situations where the owner wants
an unconditional sale (no cooling off at auction) or wishes to set specific
terms of sale, such as no electrical and borer certificates. This can
translate into a huge savings for the Seller.
5) Cost; The only cost associated with the Auction by the Seller is the
marketing, you will be given a fixed quote for these costs. Typically we
have a 2 - 3 week intense marketing campaign ,which gives the purchasers'
time to view the property with us and an opportunity to get their finances
in order. We advertise in The Property Junction, Herald, Weekend Post and
on the following web portals: Century 21 Global, Century 21 South Africa,
Private Property, Property 24, IOL, OLX, EC Property Guide, Property Genie &
Gumtree.
6) Commission; Possibly one of the biggest savings is the commission,
which is payable by the Purchaser on an Auction. This translates to savings
of between 5% and 7.5% plus VAT for properties sold via agents. On a R3
million property this could be as much as R171 000 - R260 000, amounts
which can be deal breakers in a tough market.
Limitations
1) Sales Evidence; For properties where there is ample accurate sales
evidence, an auction may not be the best way of selling. For example, for a
large block of identical units which are all of a similar specification,
everyone would be aware of the sale price of other units, thus private sale
could result in a higher sale price per property.
Tips for a successful auction
* Setting a reserve price; Settle on a final reserve (i.e. the lowest
price you are willing to accept) in the days leading up to the auction. It
is important that the reserve is well planned, so that you don't end up
negotiating this half-way through the auction when time, pressure and
emotions are high. It is also important that you do not disclose or discuss
your reserve price with anyone except your agent/auctioneer.
* Contracts; It is important to make sure you have the contract well
before the auction date. This way you will have everything prepared in
advance, and not have to stress over these details in the days leading up to
the auction.
* Accepting market value; Be prepared to accept the market value on
auction day, provided there has been competitive bidding between multiple
bidders. Sometimes auctions achieve results lower than your expectations
as a result of market conditions, and this is why you need to properly plan
your reserve price.
Call Anton now to discuss - 083 650 0011
