Why auction a property

According to Marc Zlotnick, Managing Director of Forsite, there are positives and negatives to both methods. At the end, however, true market value will prevail — because property is bought and sold when a willing buyer and a willing seller agree on a price in an open market. If you are using Internet Explorer 8 or higher, please verify that your Internet Explorer compatibility view settings are not enabled.

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Send Cancel. A secure, world-class lifestyle estate. Situated just minutes from Rosebank and Sandton, and less than m from Hyde Park Corner, this secure development by Legaro is the very definition of exclusive urban, designer living. Inland housing markets boom pushed by 'affordable' entry-level properties. Housing markets in the inland provinces of Limpopo, Mpumalanga, North West, the Free State and Northern Cape have staged a strong comeback after the hard Covid lockdown during late March to the end of June Property buyer mindsets have shifted as South Africans search for a better quality of life - and in many respects wellness has become the new luxury.

Contact Us. Rent Residential Commercial. Selling At Auction When selling your property, there are quite a few different modes of sale you can opt for. Attending a house auction: 10 Important things to remember Here are some guidelines for attending a real estate auction with the intention to purchase property. Arrive early Make sure you arrive early, before the auction starts, so that you can be present when the auctioneer reads out the terms and conditions of the sale.

Do your research Property auctions feature an inventory of homes that are sold voetstoots , faults and all. Attend auctions as an observer Part of your preparation should be attending a few property auctions as an observer to get a feel for how they work.

Check the Conditions of Sale Take a closer look at the Conditions of Sale before you decide to participate in a real estate auction as these can be amended until the auction date. Get prequalified for a home loan today DIY with our online prequalification tool, or speak to an expert.

Get Prequalified. Related articles The process of buying a house with cash in South Africa. VAT on property sales: Everything buyers and sellers need to know. How to use your existing property to buy another. Can't find what you are looking for? Search Search. Get home buying tips delivered straight to your inbox. First Name. If, for example, the market is realising a loss of even just a quarter of a percent every month, but a home seller insists on sticking steadfastly to a market value figure dictated to by either the high municipal valuation as was revised in , or sales in the area that were achieved even just a month prior, the consequence can easily be a house that stays on the market indefinitely because it will likely never catch up with the pricing trajectory.

This is a lag that can be contained by auctioning a home property, and furthermore, it also addresses the issue of true market value, which as we know is a very different picture to that of even as little as six months ago. One of the foremost names in the home property auction industry is that of Paul Winterstein, who over the past three decades has either performed directorship or CEO roles.

This is not necessarily true. For instance there are cultural groups like high-end professionals and Muslim families that are looking for extensive homes. Auctioneers know how to respond to that demographic and entice them into an auction. What a luxury home then sells for at the auction, is a case of true market value, which in the real estate industry, has always been determined by what a buyer is prepared to pay. One of the sureties of an auction is that they only attract serious buyers and the bidding process creates a sense of urgency, which is an advantage for those who need to sell a home quickly, for example when immigrating or under pressure to take occupation of another home.

Winterstein explains that at auction, after the hammer falls, a deposit is required within 24 hours, following which are three days of confirmation and guarantee follow-ups, and if there is a financial house already on board, conveyancing can start immediately thereafter; all in all around 21 days from the date the seller confirms the sale.

This is an enormous money-saver from the perspective of carrying costs — rates and taxes, maintenance - while a home is on the market. Sellers can budget better because they have an exact sell-by date.