The property market in South Africa has been fairly stagnant over the last few years on account of the world recession that has plagued so many. Placing your property with an estate agent or attempting a private sale can end up being a long drawn-out process – sometimes never ending. If this is the situation you find yourself in, the time has probably come to consider what they call fast sell properties.
If you really need to get rid of that property quickly, there is really only one way of doing so, and that is through a public auction. Property auctions have a number of advantages for both seller and buyer, and we will talk about the main ones.
There are a number of reasons why you might wish to fast sell your property.
- You may have been posted to a new location in your job
- You may have recently become divorced or separated and need to dispose of the property quickly.
- You may be experiencing financial difficulties and need to avoid the bank from seizing the property.
- You may have inherited the property but have no use for it.
- You may be emigrating
These are just a few of the reasons why you may need to move the property with the minimum of delay, something that in today’s economic climate you are unlikely to achieve through an estate agent or by attempting to sell privately.
Selling your property through an auction can often be achieved within two to three months.
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How about purchasing fast sell properties? Are there any advantages? How does the process work? Perhaps the main advantage of buying a fast sell property at auction is that the final selling price can be as much as 60% below the property’s actual value.
There are a number of differences when buying fast sell property through an auction, and a number of precautions and preliminaries that you should attend to beforehand. Some of these can by found in the auctioneers’ Conditions of Sale, which you should be given when you register with them beforehand.
The two most important preliminaries are firstly to carry out an inspection of the property beforehand - it would be extremely foolish to bid for a property you had never seen, unless acting as an agent for someone who had seen the property. Secondly to make sure that you have arranged for any financing before the auction started.
A successful bidder will have to pay a 10% commission on top of the selling price as well as a 10% deposit at the fall of the hammer.
If you are the successful bidder, then you will have to pay the balance of the selling price within 28 days of the sale – should you fail to do so you will forfeit your deposit and could be sued by the seller for the full amount in court.