Placing your property on auction: How do I value my property?
The ClareMart Auction Group presents the fifth in a series of “How’s, When’s and Why -To’s” for sellers, buyers and those interested in commercial, investment, residential and luxury property as well as movable assets. The directors and managers within the Group will over the next few months be contributing their knowledge and expertise in order to educate the auction market and answer the many frequently asked questions relevant to the industry.
Andrew Edelstein, New Business Manager, feels that the fifth instalment in the series should be aimed at those potential sellers who are looking at placing their property on the market and considering using the tried and tested auction mechanism in order to achieve results. Edelstein has highlighted certain basic yet fundamental principles that he feels the first time seller who is exploring the auction platform may find useful.
- What is the first possible error a potential seller can make? There is a common and long-standing practise amongst sellers to place too high a value on their property. With market conditions being what they are it is vital for sellers to formulate the concept of value, regarding their property, in accordance with what the current market dictates that value to be.
- Why should I value and position my property in a way that is realistic, and market related? The concept of value should be real in terms of the current market sentiments. The buying public will want to pay a fair market value for your property. Do not take into account inflated values that may be given to you, rather request the Auctioneer to give you an assessment value for your property.
- How do I get realistic interpretation of the value of my property? Our Group has over the past three decades accumulated an arsenal of knowledge and an inside perspective on the property market both locally and abroad. As a recognised Professional Valuer and a leading auction group in South Africa, we have the team and the skills necessary to value property in a way that is concise, real and accurate.
- Is there a large pool of buyers who are looking to buy property on auction? The fact that there are many prospective bidders registering at our auctions as well as often close on two hundred members of the public attending our events, indicates that people are comfortable with buying property through our group. Furthermore, our extensive and active database of dedicated and serious auction bidders will introduce your property to thousands of potential buyers.
- Once I have set my mind on the value of my property and decide to proceed to auction, what costs implications are there for me as a seller? With our Group there are no costs for you as a seller. We will tailor make a comprehensive marketing, advertising and promotional strategy for your property at no cost to you. Also, there is no auctioneer’s commission payable by you, the seller. We would also like to take this opportunity to point out to potential sellers that all offers received at auction are cash offers made by serious buyers.
- What level of success can I expect from auction? Whilst the auction mechanism is a highly successful process that usually achieves positive results for all parties involved, sellers must go to an auction floor with prices that are pitched at what the market is prepared to pay. The buying public in South Africa is one of the better educated property investors as we tend to research returns on investment and compare our purchase decisions against other calculations before making big decision. If the value is not there, the buyer will not bid.
Edelstein adds that it is very difficult to revive a sale once the window of opportunity has been closed. “Our advice to those who are considering placing their property on the market is that If you wish to utilize the professional service and benefit from the value that our Group offers, please be guided as much as possible by our professional valuation regarding prices as very often the skilled, accurate and expert advice given to our sellers materialize in reality.
For any information regarding valuations and auctions contact the ClareMart Auction Group on 021-425 8822 or visit www.claremart.co.za