Useful tips for bidding online for a home

● Over the past several years South Africans have become comfortable with and accustomed to making purchases on-line. Which is why online auction property transactions make perfect sense.

“Acquiring property for sale on auction via an online platform is a whole lot easier and quicker than physically attending an auction at a specified location, plus it’s secure and provides an opportunity to acquire a property at a value-for-money, market-related price,” says Bid-X1 SA chief executive for property sales, MC du Toit.

“In many instances there is no buyer’s commission or there is a reduced commission from that which buyers are used to seeing at normal auction sales. Bidders are advised to check the details of the property of interest to make sure what the commission and deposit structure is.

“For those who have not previously participated in an online property auction, here are a few things you need to know.

“Firstly, the auction takes place in real time, with the key benefit being that you can bid from anywhere in the world and from any computer or hand-held device.

“It’s also safe, as bidders have to register first and provide Fica documentation, namely ID and proof of residential address and source of funds, thereby eliminating any fictitious bids being placed.

“The process itself is transparent, as everyone can see the bidding as it unfolds, and as the process is also recorded, anyone is able to view the bidding for properties sold via our previous online auctions.

“I strongly recommend that you physically inspect the property at one of our show days, download and fully understand the conditions of sale and read all the relevant information regarding the property of interest, all of which are available for each property on our website.

“In addition, we have professional property brokers on hand who can answer any questions via telephone or e-mail.”

On the Bid-X1 online platform, an opening bid is declared for each property or lot, which is the price at which bidding will commence. In most cases this will also be the reserve price for the property unless there is further creditor or liquidator’s approval required. This lets you know where you stand because once the opening bid is met, the property is on the market and the highest bidder will be the successful purchaser.

Once you’ve made the decision to bid, you need to register – and generally this is with payment of a fixed registration fee. However, this may vary, should a liquidator or bank request a higher deposit or even a lower deposit.

Bidder registration usually opens a week prior to the auction. If you are the successful bidder, a deposit representing 10% of the opening bid amount for the property is immediately payable.

Unlike the private treaty process, all the auction properties are sold without any suspensive conditions, so if you are the successful bidder, a legal and binding contract has been formed and you are legally obliged to complete the sale.

The next auction is scheduled for July 3, with the catalogue going live on May 31.

To receive the catalogue via e-mail, interested buyers are requested to register their details at bidx1.com/en/south-africa. For further information visit https://bidx1.com/en/news/buyingproperty-south-africa-bidx1s-digitalplatform or email info@za.bidx1.com