Why Property Auctions?

All over the world, and in South Africa, property auctions are becoming the preferred method of selling property – especially where the seller needs cash as soon as possible. To decide whether an auction is right for your specific property, you need to understand the benefits that auctions offer and how auctions work. Colliers International will also provide you with advice once we have evaluated your property. To sell property in South Africa through an auction holds benefits for the seller and the purchaser.

The word auction comes from the Latin augere, which means to increase or augment.

Benefits for sellers

• An accelerated sales process - Property can take months to sell through normal real estate channels. Property auctions, on the other hand, set specific purchasing dates and accelerate the entire process. This means that the selling of a property can be finalised within 30 days. This also reduces long-term carrying costs, maintenance and rates and taxes.
• An aggressive advertising campaign - We will use all the appropriate printed and electronic communication channels to advertise the auction. This includes the print media (newspapers, posters, flyers), the electronic media (our website, e-mails, e-newsletters, SMS messages) and signage (billboards, etc.). We will also mine our databases for suitable and serious buyers.
• Very high success rate - Your chances of selling your property at an auction are almost guaranteed. When the hammer falls you have exchanged contracts, and the buyer is legally bound to buy the property. There is no cooling-off period.
• Competitive bidding - The possibility of buying the property at a bargain price creates competition among prospective buyers. Competitive bidding will help to sell your property at the highest possible price.
• Show days - Colliers International will arrange show days on specific dates. This eliminates the need for numerous showings when you sell through an estate agent.
• Conditions of sale - The terms and conditions are determined by the seller. These terms and conditions govern the sale and prevent confusion.
• Market value - An auction offers you an opportunity to achieve true market value.

Benefits for buyers

• An accelerated buying process - Auctions reduce the time needed to buy property.
• Pre-qualification - The potential buyers at the auction have been pre-qualified to buy.
• Making a smart investment - Buying property through competitive bidding will help to ensure fair market value.
• Due diligence pack - Buyers receive comprehensive information on the property to be auctioned.
• Selling price - The buyers determine the purchase price.