Particularly as more repossessed properties are circulating in the market in these harsh economic times, property auctioneers in Cape Town have more properties than ever to offer prospective buyers.
The first auction companies started in South Africa in 1928, and since then the auctioneering market has continued to grow. A number of sales areas are covered by auctions, such as livestock, vehicles, agricultural, estate and more. One of the auction business’ fastest growing categories is the property market, with a success rate of over 70%. Houses are not only auctioned due to insolvency; many people are now choosing you put their property up for auction before giving the mandate to real estate agents.
In Australia, over 85% of real estate is sold through auction. In South Africa, auction sales were usually associated with deceased estates and repossessed properties. These days, however, the real estate auction scope is changing and auctioning is becoming a more popular way to buy and sell property in Cape Town and around the country.
The advantages of buying and selling on auction
- Buying on auction can be advantageous as people who sell their property on auction often need the money from the sale as soon as possible. This means that properties sold on auction may go for lower prices than properties sold through traditional means.
- If you have non-performing property, it is simply racking up interest, maintenance costs, insurance and taxes. Selling assets now on auction allows you to recover the money for these liabilities. Properties sold on auction can often be sold quicker than properties sold privately or through estate agents.
- Selling on auction allows the opportunity to bargain up rather than bargaining down.
- The conversion process takes place a lot quicker through an auction process and the money for the property may be made more readily available.
To serve the growing property market, there are a number of property auctioneers in Cape Town and around South Africa:
- Private Property (http://www.privateproperty.co.za/auctions/) is an online property auctioneer with an online auction feature to make buying a house on auction all the more convenient. Private Property has collaborated with Bidorbuy, allowing you to enjoy all the auction excitement from the comfort of your own home. Every effort is made by Private Property to ensure the safety of each deal.
- Auction Roster hosts property auctions in Cape Town that offer top quality properties at reasonable prices with good rates for property sellers. Auction Roster also offers free property evaluations for those interested in auctioning their property to ensure that you know the value of your house before putting it up for auction.
- Auction Alliance is an auctioneer in Cape Town offering both commercial and residential properties (www.alliancegroup.co.za).
- SAhometraders is a property website that lists the properties up for auction by various auction houses. This can be a great resource to compare the properties available and choose the best deal (www.sahometraders.co.za).
Most auction houses host weekly auctions around Cape Town, showcasing different properties on offer.
How do I buy property through online auctions?
Online auctioneers have become more popular as more people harness the potential of the internet. Buying property through online auctions is a relatively easy process. Two weeks before the bidding opens of the properties listed, you have the opportunity to check out the property details and bidding dates to get an idea of which property you would like to bid on. You can also sign up for weekly auction updates via email. Auction days are usually open weekly, for a 12 hour period from 8.00am to 8.00pm. The property is sold to the highest bidder as long as the highest bid exceeds or at least meets the initial Reserve Price the seller lists.
When you buy property on auction, it is important to do your research beforehand to ensure you are getting a good deal. Have a look at the values of similar properties so that you can price the one you are interested in.
Auctions can be very exciting, so go out and get your gavel on!