Questions about Auction Sales

1.         How does the seller go about auctioning his property? 

He approaches an auctioneer with a good reputation and who he can trust with the dealings.  Keep in mind that a seller doesn’t have to look for buyers, the buyers will come to the property on the day of the auction. 

2.         Will the property be open for viewing? 

Yes definitely, normally two (2) hours before the auction commence or even the previous day for a few hours (All depends on the property). 

3.         What must the buyer do? (Prior financial arrangements with bank; payments to seller)

               The buyer can pre qualify him with a bank of his choice to know for what price he can buy or bid.  He must also make sure if auctioneers commission is included into the bidding price or to be added on the final price bid.  Make sure what the VAT implications if applicable are.   

4.         When and how are fees determined for auctioneer? 

               The fees are by agreement before hand between the seller and auctioneer.  The costs of the auction be advertising in local papers and on radio might play a role on the percentage charged or agreed on. 

5.         What are the duties of the auctioneer? 

               The auctioneer will inspect the property together with the owner/seller.  He will advise him on possible minor repair work and cleaning and will make sure that he obtains all relevant information of the property to be auctioned.  He will discuss the advertising campaign with the seller and arrange viewing time for potential buyers if needed. 

6.         Exactly what happens on the day of the auction? 

               The auctioneer will ensure that the property is open for viewing by potential buyers.  All potential buyers will register as a buyer with the auctioneer and or his staff on duty.  All the auction conditions will be read by the auctioneer prior to the commencement of the auction itself.  The highest bidder will sign all relevant documents with the auctioneer with the fall of the hammer. 

7.         The success of any property auction depends on: 

Does the owner really want to sell and will he accept a market related price

Make sure that the auction is advertised properly and sufficiently

                The auctioneer must have a good knowledge of property and their value

                Lastly, the auctioneer is not a magician and there is no magic formula for the success of a property auction.  (The price bid is the price the market is prepared to pay for the property)