I’m looking at different ways of selling property in this down property market. Even if it means not selling and renting.
It’s time consuming researching various options for property in this collapsed property market but you’ve got to do everything you can do to make good decisions.
I attended a house auction about three weeks ago. There weren’t many buyers. The whole thing cost a lot with fat commissions and marketing fees.
I don’t know anything about auctioning of houses so it’s best to do your own homework and find out yourself if it’s a viable option for you.
All I know is, as I said, that it’s expensive and not a lot of people rock up at the auctions. I’m not sure why this is. Auctions used to have a stigma because it showed people were desperate to sell. I’m not sure if this perception has changed.
I am hesitant to look at the auction option mainly because of the costs involved. The cost means that you take out on the house sale is less. Simple as that really.
If you don’t have time on your hands and are forced to sell, it may be an option. But I repeat that you have to do your own home work and get professionals involved.
I did some research on auctions and if you are interested you can read it below.
Often when you do this research it makes it all seem believable and easy to do. But nothing is easy; everything requires diligence and hard work.
So I only give you this research in the spirit of a basic overview to familiarise yourself with auctioning of property.
If you were to go this route, it would be best to speak to professionals involved and do some heavy research on who to use.
Always seek the best professional advice before you make major decisions.
So here it is – a quick overview of the pros and cons of auctioning property in this country.
- Speed of Sale: One of the main advantages of putting your house or flat on auction is the potential for a quick sale. The competitive bidding environment can attract motivated buyers, leading to a faster transaction compared to the traditional selling process.
- Transparency and Fair Market Value: Auctions are known for their transparency, as all interested buyers have an equal opportunity to bid. This can result in the property being sold at its fair market value, especially if there’s high demand and competitive bidding.
- Non-Conditional Sale: When the hammer falls, the sale is considered final, and there are no conditions attached to the purchase. This eliminates the possibility of lengthy negotiations or the sale falling through due to buyer financing issues.
- Marketing Exposure: Auctions can provide extensive marketing exposure for your property. Auction houses often employ various marketing channels to attract potential buyers, which can lead to a broader audience and increased interest.
- Uncertain Selling Price: While auctions can fetch fair market value, they can also lead to uncertainty regarding the final selling price. If there’s a lack of interest or competitive bidding, the property might sell for less than what you were hoping for.
- Costly Auction Fees: Auctioning property involves additional costs, including auctioneer fees, marketing expenses, and administrative charges. These fees can significantly impact the overall net proceeds from the sale.
- Limited Buyer Pool: Auctions may not attract all potential buyers, as some might prefer traditional methods of purchasing property. This could limit the number of interested parties and potentially reduce the final selling price.
- Emotionally Draining: For some sellers, the auction process can be emotionally taxing, as they witness their property being bid on in real-time, possibly leading to feelings of stress and anxiety.
Like I said, auctioning property in South Africa may be an option if you are looking for a fast sale. But you’ve got to weigh the potential benefits against the uncertainties and additional costs involved in the process.
I must repeat that every situation is unique, so carefully consider your circumstances and consult with professionals to make an informed decision.
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