Why Auction Your Property Part 6

Firstly before I get onto my next part of the property auction story I would like to appologise to all who read my blog for not posting for the last two weeks. I want to thank you for your loyalty and support.

Now for the next step in the story

Specialized Marketing Program

What makes auction marketing different to that of estate agent marketing?

Ok this is going to sound probably unfair for the seller and possibly make the seller want to use estate agents more than auctioneers. But read on before you make that decision. Let me see if I can convince you.

When auctioning any thing from antiques, art, cars or property there is usualy a marketing fee that the seller has to pay. It is normaly a limited cost and the only risk the seller has. Remember when selling a property at auction the seller does not pay commission. The costs for the marketing differs from auction house to auction house. Some auction houses will tailor make a marketing package to suite your pocket and your property. These costs don't normally go over R10 000.00. This would be on a multi property auction. If the seller chooses to have an individual package where the auctioneers will auction the proeprty on its own the costs can go upto about R15 000.00.

Now you may think that the marketing fee is expensive. But think of it in this way.
The seller pays the marketing fee of R10 000.00. The property sees a global market, a market that it has never seen before. With the potential of an overseas indvidual buying the property. The marketing is "in your face". It is an active campaign. The property is then sold at auction and the seller walks away with the price they wanted and saving 10s or even 100s of thousand rand.

Does R10 000.00 seem so bad now?????

Auction marketing out does any estate agency advertising by a mile or more. Becuase the advertising does not say "For Sale", there are avenues that auctioneers can use that estate agents cannot. Such as Street lamp marketing. What this is, is A1 boards with the property and auction details on it. These boards are tied onto street lamp poles in and around the area of the property being sold.
Just the word "Auction" attracts a lot more buyers and the mentality they think they are getting a bargain, but what is really happening is that they are buying a property at the market related price.

The marketing also consists of internet websites such as Property 24, Private Property, The Auctioneer and many others. Most of these sites have gone global. This is where foriegn investment and interest comes in. Then the auctioneer will have their own web site such as Dales Bros Auctioneers.

Then there is the media. Media such as newspapers and magazines which are published weekly and daily. These aren't always the best forms of marketing as they are expensive and have a shelf life of about 48 hours. However they do work.

Well I have run out things to tell you about the marketing of auctioned proeprties. If i have anything else to say I will certainly put it in.

Thanks for reading

Mornay

Why Auction Your Property Part 4

Firstly sorry guys for not writing to you on Monday.

What I will do is do two posts today to catch up.

So what will we be talking about today?

Auctions have the power to unlock the value of your property.

Mmmmm, What do I mean when I say the auction has the power to unlock the value of your property?

Well it is pretty simple. There is basically five steps to this.

1st is the Connection. Auctions are able to execute mulitfaceted global marketing campaigns. Each campaign tailored to your property. Throughout the campaign the auctioneers is able to put the spotlight onto your property generating expanantially more visibility and exposer than what you would normal recieve from marketing the property yourself or through an estate agency.

2nd The Contact. AS a result of the comprehensive maketing campaign buyers around the globe enquire about the property. During this pariod of time the auctioneers will contact each potential purchase and discuss the property with them and answer any of the purchasers questions. The auctioneers will also invite these potential buyers to attend a mini show house or if theyt cannot make that show house they would schedule a private showing.

3rd The Due Diligence. Potential buyers are provided with a comprehensive bidder information package. This information provides the buyer with all the necessary information required for them to become familier with the auction process and the property so that when it comes to auction day they are prepared and ready to bid aggresively. Now this is a very important step in the process as all properties are sold as is, there is no repairs to the seller, no contingencies, financing or otherwise.

4th The Auction. The auction is the time when everything comes together. The auction maybe held at the property, our at a venue where the auctioneers will auction multi properties and in some cases auction the property online. The auction is when multiple bidders compete to purchase the property for the highest possible price.

5th The Closing. The closing will generally take place no more than 30 days after the auction. At th closing the buyers and sellers accomplish their goals they set out to achieve. The buyer will be all excited about their new purchase and the seller will be over the moon becasue they have achieved what they have been trying to do for along time.

By following these five basic steps unlocks the true value of  your property.

Thanks for regarding.

As usual, if you have any questoins or comment you would like ask or leave please do so.

Regards

Mornay

Why Auction Your Property Part 2

So we shall continue with the reasons why you should auction your property.

We are going to look at securing a deposit when an offer to purchase is submitted on your property.

Deposit paid on the fall of the Hammer

So what do I mean by a deposit paid on the fall of the hammer?

Many of you I'm sure have gone through or going through selling your proeprty. One of the worst fears when selling a property and signing a offer to purchase as an acceptance to a purchase price on your property is that the sale falls through.

One of the reasons for this fear is that all to often a prospective buyer never obtains a pre approved bond from a financial institute our they still have to sell their property first. What happens next is the fiancial institute rejects the bond application of the purchaser or fails to sell their property in the time limit given to them (This is known as suspoensive conditions). This then becomes a waisted execise, waisted time and money. Somthing that non of us can afford.

With auctioning there is an added safe guard when selling through auction. This safe guard is the purchaser has to pay a minimum of 10% deposit* (this varies according to the different auction houses) which is non refundable to the purchaser on the fall of the hammer.

By doing this it has a two fold effect. First it ties the purchaser into the sale of the property. The purchaser will loose the deposit should they get cold feet and want to pull out of the sale. Second, only purchasers who know they have either got the finance or have the deposit and are pre-approved will attend the auction and or make an offer on the property.

This rule applies to both pre-auction and auction offer to purchase's.

IF you want your sale to be guarenteed then you need to seriously consider property auctions.

* Applies to Dales Bros Estate Agents & Auctioneers.

See you tomorrow for part 3