We at Dynamic Auctioneers hammer out some of the facts when it comes to common myths surrounding selling and bidding for assets through auctions. Since auctions have been around for several centuries, and have a long history as a popular method for selling goods and services, most people have heard of the process. As with any industry, however, there are several myths and misunderstandings associated with auctions and auctioneers. This is unfortunate since it may hinder buyers and sellers from embracing this phenomenal service that continues to gain popularity. While it isn’t for everyone, there is a significant market interested in auctions within South Africa, and we clear up some of the common falsehoods associated with auctions for anyone interested in learning more.

Myth 1: Auctioneers Only Deal in the Disposal of Distressed Assets

There is a misconception that if you cannot sell a home or movable asset, you can simply auction it off. This is not true, because there is no guarantee that any bidders will be interested in a distressed asset – even at a reduced price. In contrast to the myth, many properties and items that go on auction cater to the luxury market seeking to buy houses in desired, upmarket locations or luxury items they cannot find elsewhere. High-end homes that offer exceptional exclusivity are often sold quite quickly through auctions and achieve prices beyond what the seller sets.

Myth 2: Houses Are Only Auctioned Off in Desperation

Auctions today are not what they once were, but some of the misperceptions about auctions still stick. Sector specialisation means that the industry has changed, and many clients involved with auctioneers are considered high-net-worth individuals and investors with vast portfolios. Sellers are often motivated to use auctioneers as it is a swift and efficient way to reach many motivated, qualified buyers who will show interest.

Myth 3: Sellers Have to Sell Regardless of the Reserve Price

The goal is for all parties to be happy with the deal and final bid. When it comes to properties, for example, the broker works with the seller to perform a valuation and determine market-related reserve prices that are realistic. From here, bidding begins. With Dynamic Auctioneers, the value of the property is protected and hidden from the market. 

Myth 4: You Are Bidding for Something Without Seeing it Beforehand

Parties interested in bidding on assets are not going into the deal blindly. Buyers can attend viewing days to take notes about the items they find interesting, and they will also be invited to view a property they are considering. Buyers are given relevant information before the bid and do not have to take part in the bid if they change their minds.

Myth 5: Auctions are Complicated and Stressful

Auctions are sometimes perceived as highly stressful environments where anything can happen, including fist fights. We at Dynamic Auctioneers are changing these myths, however, through streamlined services that take the hassle out of auctions. We ensure a professional environment in which to sell and bid, whether online or in person. For those viewing and taking part, bidding is exciting, and people often come back again and again just to be involved.

If you would like to know more about our services, speak to us today.

If you are looking to auction a house, we at Dynamic Auctioneers will assist you with professional services that put you first and simplify the selling process. Selling a property is not generally something most homeowners look forward to doing. It’s an emotionally taxing process that can take weeks or months and requires a lot of time, effort, and money to market the home to the right buyers. Unlike selling a home through ordinary listings or a real estate agency, however, there is another option that is gaining popularity in South Africa – property auctions. This is one of the easiest, swiftest, and hassle-free ways to sell a house without delay.

Understanding What it Means to Auction a House

A property auction is a public sale process in which a home is sold to the highest bidder. It begins with a reserve price, or a minimum price, set by the seller. The auctioneer then begins the bidding, with an incremental increase in the bid as the process progresses. The auctioneer will continue to accept bids until no further bids are offered. The last person to make an offer is then considered the highest bidder, and the property is sold to them. While an auction is a public sale, some auctions can be done online too. Properties are sold voetstoots during these auctions, which means the highest bidder will buy the property as is, and bidders must do their homework to avoid buyer’s remorse. Apart from voluntary auctions which most often favour the seller, there are also other kinds of auctions. Bank auctions happen when a seller is in arrears with their bond and their bank organises an auction. A sheriff’s auction happens when a bank applies to the court to auction a property to cover debt currently unobtainable from the bondholder.

Some of the Benefits of Selling Your House on Auction

If you want to auction a house through us at Dynamic Auctioneers, the main benefit will be the quick turnaround time of the process. Generally, a sales cycle takes between three to four weeks. You can set up agreements on your terms and conditions before you auction your house, and even keep the reserve and value of the house hidden from the market. Our services also promote each property to a vast, interested market and enable a platform that fosters competition between qualified, determined buyers. Additionally, the commission gets paid by the buyer, and the seller will not have to spend any cash when the auction happens. You can also opt for an online auction.

5 Simple Steps to Getting Started with Us

Our services streamline the sale, reducing the intimidation and challenges behind the process. To auction a house with us at Dynamic Auctioneers, all it takes is the following five, easy-to-follow steps to get the ball rolling:

1.  Getting in touch with us for a consultation.

2. We market the house and receive out-of-hand offers.

3. We propose the marketing budget and material for the client’s approval.

4. We set the date and prepare for the auction together with the client.

5. The house is sold on auction day.

To auction a house through a reputable company with a stellar reputation, speak to us today.