Auc­tion trend catch­ing on, more prop­er­ties be­ing sold this way

Weekend Argus (Saturday Edition) - - PROPERTY - BONNY FOURIE

SELL­ING prop­erty through auc­tions has, over re­cent years, be­come a more ac­cept­able method of buy­ing real es­tate, and is a trend which has def­i­nitely shown growth.

The quick con­clu­sion of sales is the main rea­son why prop­erty auc­tions re­main pop­u­lar for sales of de­ceased estates, liq­ui­da­tions and as­set for­fei­ture. How­ever, more peo­ple are also look­ing to­wards reg­u­lar prop­erty sales via auc­tion.

It has been pre­dicted that a third of homes for sale would come un­der auc­tion­eers’ ham­mers.

No longer armed with the the old “bank- rupt es­tate” stigma, with peo­ple think­ing that if a prop­erty came un­der auc­tion it had to mean the owner had gone bank­rupt, means sell­ers are now more com­fort­able with tak­ing their prop­erty to an auc­tion.

The per­cep­tion that buy­ers could pick up bar­gains at auc­tions is of­ten held, but this was mainly true of prop­er­ties on sale via sher­iff auc­tions.

The pri­mary dif­fer­ence be­tween sell­ing a prop­erty on auc­tion or via pri­vate sales was the turnaround time, and be­cause auc­tion mar­ket­ing was “more ag­gres­sive”, prop­er­ties sold this way went a lot quicker. From the time of plac­ing a prop­erty on auc­tion, through the re­search, auc­tion, con­fir­ma­tion and then reg­is­tra­tion via the deeds of­fice, a trans­fer could be con­cluded in as lit­tle as four months. Stan­dard Bank says, how­ever, that the mar­ket for res­i­den­tial auc­tion sales is small and with­out ma­jor growth. South Africans seem to be cau­tious when pur­chas­ing prop­erty, and not will­ing to make such big de­ci­sions in the heat of the mo­ment.

Buy­ers need to do ex­ten­sive re­search as there are of­ten con­di­tions on auc­tions.

Stan­dard Bank en­cour­ages buy­ers to be aware as there is lit­tle re­course af­ter one has com­mit­ted to the trans­ac­tion at an auc­tion.

It is an oral con­trac­tual agree­ment that is re­duced to writ­ing be­cause it is an obli­ga­tion that needs to be ful­filled in terms of prop­erty law, but it is a con­trac­tual agree­ment none­the­less.

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