Why Auction Your Property Part 1

Yes this is a very good question.....

I have decided to answer this question over a series. I'm goingto breack it down into sections and go through all the advantages of auctioning your property.

So here we go.

The biggest and most important reason to auction your property is this.

Seller Does Not Pay Commission

You're probably going yea right......
Well it is true. But I'll back to that in a minute.

When selling your property you have to make some very important decisions. Decissions like, "do I sell the property privately" or "which estate agency do I use".

For those who choose to sell their property own their own is for one reason most of the time. They don't want to pay commission. I totally agree. Who wants to give away money that can very easily be yours.

Well there is an alternitive.

When you sell your property at auction you do not pay the commission. The commission is paid by the purchaser. It is as simple as that. But please not that the property has to sell under auction conditions. Meaning, The property has to be included in on the day of the auction and Purchasers have to have a chance to bid on the property.

Now there is an alternative to this. Some auction houses such as Dales Bros Allow for what is called pre-auction offers and post auction offers.

Pre-auction offers is an offer to purchase submitted before the auction. There are certain rules that apply to this though. Rules such as the offer will be a private treaty offer to purchase (I'll explain this at a later stage). The purchaser has to have their finances ready. The sale has to be concluded before the auction and there are no suspensive conditions allowed. (I'll explain suspensive condition at a later stage). The most imprtant thing is that the seller will then pay the commission. But Dales Bros works differently with the commission situation. What they do is ensure the offer that is submitted is a strong offer. What I mean by this is that the offer has to cover the commission for the seller. By doing this, in theory, The purchaser is paying the commission.

Post auction offers really work in the same way as a re-auction offer. So I won't bore you with the same story twice.

Well that is it for now. I hope this has helped you to understand property auction a bit better.

As usual, if you have any questions or concerns please drop me a comment and i will get back to you soon.

See you tomorrow for Part 2

Regards

Mornay

Welcome

Welcome to the new blog about Property Auctions.

I have been reseaching the internet on information about selling properties through auction and I found that there is hardly any information about property auctions. Especially in South Africa.

I myself work for a Auction house here in Pinetown Kwa-Zulu Natal South Africa. I have been in the real estate business for a few years as a estate agent. Then i took the big leap and moved overt o property auctions. Since i made this move I haven't looked back.

So, you may be asking why blog on property auctions. Well let me tell you a bit about it. I will over time go through auctioning as well as keep you upto date with what is going on in the property sector.

Property auctions are well under used in South Africa. There is this mith about auctions which says "you have to be in financial trouble to use auctions". or "auctions are only for bank repossessions, liquidations, foreclosers, etc, etc". Well what I have to sayto this is BLAH, BLAH, BLAH.

As mentioned above is true and if you are into property investment going to sherrif auctions to buy repo properties is good way of saving money and making money, its not the only way to auction properties.

In Australia buying property can only be done through auction. The UK is more or less the same. South Africa was following suite until Auction Alliance and their dirty dealing put a bad name to property auctions in South Africa was becoming one of the best ways to sell your property.

Since the Auction Alliance saga, property auctions have started to gain momentum again. More and more people are starting use property auctions as a way to dispose of their properties quickly, easily and even make a profit from the sale.

My aim for this blog is to educate people on property auctions so that you can get a better understanding of the industry and ultamitly get rid of the stigma that has been attached to proeprty auction for far to long. I'll keep you upto date with news and views of the real estate market. I'll keep you posted on upcoming auctions from various auction houses and teach you why auctioning is the way to go.

You are more than welcome to leave a comment or email me with suggestions or if there is a specific topic you would like me to cover.

Come back tomorrow to find out more.

Enjoy