Getting your Property Ready for Auction
Getting your Property Ready for Auction
Online auctions continue to gain traction as one of the rising trends in the property sector. Whether it’s a commercial property such as an office block or edit warehouse or a home in a sought-after suburb, auctions are proving to be a transparent, efficient way to sell an asset in 2022.
What You Need to Know
Types of Auctions: Bank auctions and sheriff auctions are used in an attempt to recover unpaid bonds and bills by homeowners. However, more online auctions are coming to the fore and can best be described as auctions in which a seller opts to sell their property via online auction rather than the traditional method of sale.
Are Bidders Prequalified?: It’s the potential bidder’s responsibility to request prequalification from a bond originator or a bank prior to registering to place a bid. This proves that they have the necessary approvals in place - unless financing is not required and it is a cash offer.
Is an Online Bid Legally Binding?: Yes. If your bid is successful, you will need to sign a Condition of Sale and put down a deposit of at least 5% (less the amount that you paid to register).
What is Voetstoots?: A property sold on auction will be sold ‘voetstoots’. It simply means that the property is sold as-is and that the seller is not liable for any defects after the sale.
Tips to Prepare a Property for Online Auction
Potential sellers wishing to sell their property at an online auction rather than through the traditional sales method should consider the following tips:
Find the Right Company to Partner With: It’s vital that one does their homework before listing their property with an agent.
If the Price is Right: Work with your agent to determine a realistic end goal. Have a sales price in mind and convey this to ensure that you attract the right pool of buyers and sellers for the desired price.
Get the Property Auction Ready: Like any property sale, an online auction property should be well maintained and handed over in the same manner that it was advertised.
Keep the Lines of Communication Open: It’s your agent’s duty to communicate with you throughout the process.
Tips to Buy a Property on Online Auction
Virtual Viewings: Online auctions allow you the opportunity to view the property virtually. Be sure to do your research on the property and the area. Request copies of the title deed, property plans, zoning certificates, etc. where relevant.
Conditions of Sale: Make sure that you familiarise yourself with the conditions of sale in advance.
Finances: Ensure that your finances are in order and that you are prequalified for a bond prior to bidding on a property. Finally, keep in mind that you will be liable for an upfront deposit, and be sure to factor in transfer duties and legal fees.