Selling of Property
Selling a property on auction:
Stilbaai Auction House provides its clients with a transparent and easy to understand process for selling property on auction.
The auction process is a dynamic and exciting one that offers many benefits for you, the seller, such as:
- Expert advice on the assessment and sale of your property
- The benefit of the Stilbaai Auction House database of property buyers and extensive marketing platforms
- A quick sales cycle of approximately 4-6 weeks
- A sale agreement in which the seller’s terms of sale and the minimum selling price is protected
- A well-managed process where the prospective buyers have conducted their due diligence prior to the auction event
- The buyer pays the auctioneer’s fee, not the seller
- A healthy and competitive environment at the auction event where the best possible price on the day can be achieved on the property
- There is no ceiling on the value that can be achieved on auction
The auction process to follow when selling a property:
The first step to take when you are interested in selling a property is to call Johan at Stilbaai Auctions House on 083 309 3894 or make an enquiry here. One of our experienced Sales Executives will contact you shortly to discuss your property in more detail and answer any questions relating to the auction process.
One of our property specialists will confirm a time to meet with you to understand your needs and conduct a thorough due diligence and assessment on the property. At this stage it would be helpful to acquire information on the property such as building plans, lease agreements, municipal accounts, etc. The information required would obviously be a function of the type of property under discussion (retail, industrial, residential, commercial, hospitality or undeveloped land).
Once we have completed the due diligence and assessment process one of our Sales Executives will take you through the findings and provide the necessary advice related to the sale of the property.
At this stage a formal proposal will be discussed for your consideration including the mandate options, marketing strategies and costs and conditions of sale of the property.
Once this process has been concluded successfully we would enter into an agreement and conclude a mandate for High Street Auctions to market and promote the property for sale at a predetermined auction date.
The ability of Stilbaai Auction House to reach and attract the right profile of buyer to the auction event will impact on the success of the transaction and on the value achieved for the property. A key driver of success is the company’s marketing capability.
Over time we have established the ideal marketing mix for reaching the target market. The following marketing strategies improve the results for the benefit of the seller:
- Brand marketing: Stilbaai Auction House invests in developing its brand and company in the media in order to build confidence for its auction platform in the market. Our clients benefit directly from this activity in terms of attracting quality sellers and buyers to the auction platform and Stilbaai Auction House events.
- Matching of buyers and properties via our referral system: We are able to capture new buyers into our national buyer’s system on a daily basis. These are matched with the properties being serviced by the Sales Executives and a support team.
- Online Presence: Through our well marketed website, www.stilbaaiauctionhouse.co.za , which showcases our auction stock within South Africa, we provide the viewer with a comfortable, easy to navigate experience. In addition to this dedicated emailers called “From The Podium” are customised and sent to our extensive database.
- Signage boards: These will be prominently be placed outside your property and surrounding areas, which have proven to positively influence the perception of value that buyers will have of your property, as well as to drive the call-to-action to bring all potential buyers to the auction event.
- Print Advertising: Brand and featured property adverts are placed regularly in appropriate publications to maintain top-of-mind awareness and future auctions.
- Public Relations: Our dedicated PR team ensures that our brand is the voice of the property Auction Industry in the media and as experts who are knowledgeable of market conditions and trends. This in turn ensures that our brand name is consistently established in the minds of the buyers and sellers. Whilst discretion and sensitivity to your needs are of paramount importance to us, a customised public relations campaign can build upon a newsworthy, unique selling feature of your property.
- Property catalogue: Will showcase your property in an online and printed format.
- Property Viewing: Our specialist Sales Executives manage information flow with interested buyers including the process of visiting and viewing the property. This process is essential in terms of evaluating levels of interest, concerns and capabilities of the buyer. Managed professionally this increases the probability of success of the auction.
Stilbaai Auction House compile detailed and comprehensive “Investor Packs” that are made available to interested buyers upon request to assist in informing their purchasing decisions. This process is carefully managed by the relevant Sales Executives who interact directly with prospective buyers and provide them with the necessary information, answers to questions and advice about the properties. This process is also tracked and recorded so that valuable feedback can be provided back to the seller throughout the process.
- The Auction Event
Stilbaai Auction House host the auction events in and around Stilbaai, jongensfontein in the Hessequa Region. Buyers attending the auction are generally pre-registered or they register on the day with the necessary FICA documents and a deposit. The Stilbaai Auction House team of experts are also present on the day to assist sellers and buyers with proceedings and answer any questions that the buyers may have. The rules of auction and the auction process are then managed by a professional auctioneer. Our Auctioneer is considered to be the best in the country and the events are as entertaining as they are exciting. Once the auction has concluded all the highest bidders are taken to the signing room where the conditions of sale are signed and the necessary deposits paid. Several payment facilities are made available on-site.
- After the Auction Event
After the sale agreements have been signed by all parties and the deposits paid into the Stilbaai Auction House Trust account, the highest bids are submitted to the sellers for confirmation. Once the offers have been accepted, copies of the agreements and all supporting documentation are delivered to the transferring attorneys who attend to the registration of transfer of the properties.
What kinds of properties can be sold on auction?
Most properties could be sold on auction. Reasons for selling property on auction include: Getting the true market value for the property, selling through a quick sales cycle, achieving extended reach into the market, accessing broader base of potential buyers through effective marketing, execution of a forced sale (liquidations, deceased estates and legal instructions), a low cost option, a need for transparency and easy to understand processes and access to property experts employed by High Street Auctions to name a few.
Do I need to sign a mandate for Stilbaai Auction House to take my property to auction?
Yes, there is a legal requirement for you to provide us with a signed sole mandate agreement in order for us to promote and sell your property.
What is it going to cost me?
The primary cost would be dependent on which marketing strategies are employed to promote the property in the target market. These costs are generally affected by the type of property, location and value. A detailed and tailored marketing campaign will be discussed with you at an appointment with a Stilbaai Auction House property specialist.
What if the price I want is not achieved at the auction?
Firstly the seller is protected under the conditions of sale where the property will not be sold if the reserve price is not met. This mitigates the seller’s risk in the auction process. The final hammer price will however be presented to the seller for consideration in the event that the reserve is not met on auction day.
Our engagement procedure with sellers aims to establish a suitable reserve price during our evaluation and assessment process which generally negates the possibility of not achieving the required price at the auction.
What happens if the buyer breaches the sales agreement?
Registered buyers would have agreed to the terms of auction and failure to comply with these terms allows the seller to place the buyer in breach of contract. If the buyer does not rectify his breach within the required period then the seller has the right to cancel the sale and take further action. The buyer would also then lose the substantial deposit paid following the auction.
So where to from here?
Our team of property experts is available to take your property to auction. Call Stilbaai Auction House on 028 754 1676 or make an enquiry.