Buyer's Advice: Benefits To Buying Property On Auction
FROM A FAIR SALE PRICE AND A FAST AND TRANSPARENT PROCESS, BUYING ON AUCTION HAS A NUMBER OF IMPRESSIVE BENEFITS.
The auction process is one that continues to grow in its success and popularity in the real estate sphere. Some of the reasons for both buyers and sellers choosing auctions is due to the ease of sale, competitive bidding (ensuring buyers get a fair price) and an open and transparent process.
If you want to have a look at the top 4 benefits of why it pays to sell your property on auction, have a look at this article that we wrote on the topic. In having covered the benefits of an auction to the seller, we wanted to dive into the various benefits of an auction to the buyer (and trust us when we say, this list of advantages is nothing shy of note-worthy).
AUCTIONS DON'T MEAN WHAT THEY USED TO
You may be thinking “I thought property auctions were only for houses and land foreclosed by the bank” but due to recent changes in this field of real estate, auctions are fast becoming the preferred real estate method of choice.
The reason for this stigma is that the financial and economic climate a decade ago in South Africa gave way to auctions taking place as a result of businesses closing down or liquidations. Creditors, trustees or appointed liquidators used auctions to dispose of these assets in a fast and effective way.
However, due to bank institutions having used the auction process to successfully sell property through a transparent and time-saving process, the popularity of auctions has quickly gained traction among private buyers and sellers.
The benefits of buying a property on auction
A FAIR PRICE
A good investor or a savvy seller is well aware that buying and selling via auction is vital to achieving a great price where there is existing demand, or creating a result for the seller when there is no demand present. The latter applies to situations where auctions are able to create a sale when the seller is in need of urgent disposal when more traditional real estate methods have proven unsuccessful.
Basically, an auction sets the scene for a competitive buying environment and allows for a quick sale (more on that in a bit) which benefits both the seller and the buyer.
As a buyer at an auction, you can rest assured in knowing that bidders who lose to your bid are prepared to pay a similar amount for the sale, meaning you will not have to overpay for a home or property.
A QUICK AND TRANSPARENT SALE
There’s no tom-foolery when it comes to auctions. Buyers have already done their research on the property, are ready and waiting with the funds they are prepared to pay for the property and sellers are prepared and ready to sell (not just testing the market).
Properties on auction are sold voetstoots. The seller has the responsibility to inform you of any of these sorts of issues and is not allowed to purposely try and hide any problems with the property (for example, painting over mould).
The point is that after inspecting the property and accepting any issues that may or may not come with it, the sale process is one that is quick and efficient.
While this may seem slightly daunting to some buyers as after the hammer has fallen the property is theirs to have, this fast method is an effective way to buy property without any ‘behind the scenes’ time-wasting.
OTHER BENEFITS INCLUDE:
- As the buyer, you know that the seller is committed to the sale of the property and is not just testing the market
- Buyers compete fairly with other buyers, all of whom are following the same terms and conditions
- The entire sale process is one that is transparent and open - Buyers know exactly what is happening at all times
- The closing date for the purchase is known
- Buyers will receive a comprehensive pack of information on the property and can arrange a viewing and inspection prior to the auction date
THE FINAL BID
In short, as the buyer, the process is strictly regulated and offers results that are instantaneous.
What dictates the process of auctions often comes down to finding the right auction house.
If you are looking for experts in the field, our team are here to help with all your property needs. Here’s how we make the buying process a simple one:
- View the property
- Partner with one of our property specialists for advice
- Register as a qualified bidder
- Keep bidding until the property is yours at a price you are happy with
Until next time,
The Auction Inc Team