Going, going, gone!

By Justine Olivier

While auctions have been gaining popularity throughout the US, the concept has only just begun to gain momentum in South Africa, particularly in the public sphere.

According to Merriam Webster, the term auction was first used in 1595, and is clearly defined as the sale of property and/or item to the highest bidder.

History tells of the earliest recording of an auction as far back as 500BC, whereby auctions of women for marriage were held annually.

With that being said, many buyers frequent auctions in the hopes of buying property and/or items at a fraction of the original price, or at least without the hassle and problems that often occur when putting your house on the market.

Auction houses – such as the High Street Auction Company that specialises in property auctions specifically in the commercial, industrial and investment sectors – are some of the most easiest and reliable avenues to choose when wanting to put property on auction and/or bid for it.

Companies such as these allow for those putting property up for auction peace of mind and freedom, as persons bidding need to be financially cleared in order to do so thereby not wasting the seller’s time; and also the sale cannot be rescinded therefore eliminating any chance of a faulty deal.

While the idea of putting your property on auction or buying property at an auction may be appealing and create a sense of excitement in some, there are a few things you should keep in mind before you make any commitments. Primelocation provides some insightful advice when you are gearing up to put your property on auction. After deciding on which auctioneer you wish to use, you need to set and agree on a reserve price and guide price. A reserve price is the absolute minimum price that you, as the seller, will accept for your property during the auction. This, of course, needs to be agreed on before the auction commences. The guide price, set by the auctioneer, is to entice potential bidders to the actual auction of the property itself.

According to www.bbc.co.uk: “A guide price gives an indication of the price that the property is expected to sell for, and what the vendor is hoping to achieve. Guide prices are for information only and should not be relied on as an indication of reserve price, or representing professional valuations for any purpose.” Both the reserve price and guide price require thought.

Once you and your auctioneer have set these prices, the next thing to consider is the preparation of your property for the auction.

You may wonder why this is, as auctions usually take place in a hall or function room, but viewing arrangements are sometimes made for interested parties to view your property prior to the actual auction. You therefore need to ensure your home looks its best.

However you decided to sell your property, putting it on auction is undoubtedly worth the look. With legal agreements and binding auction terms and conditions, it would be the safest and quickest way to have your property sold.