5 Myths and Misconceptions When it comes to Auctions and Auctioneers

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.