Auction trend catching on, more properties being sold this way
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.