Property auctioneers face 'dual challenge'

"Most auctioneers today," says Tanya Jovanovski, franchisee for Rawson Auctions in the Western Cape, "find that it is not difficult to get stock, however getting a realistic reserve price can be a real challenge."

Many tell the same story: they face a dual challenge when it comes to auctioning a property.

On the one hand, sellers, despite much media coverage on the subject, still hold onto unrealistic prices and, despite counseling from us and others, often refuse to set attainable reserve prices. In some cases we simply have to break off negotiations rather than to continue to allow them to hope for these unrealistic prices. On the other hand, many buyers attending auctions do so in the expectation of getting ludicrously low prices.

It was recently said to me that many sellers still see their buildings as 30% more valuable than the market will pay, while buyers at auctions tend to expect to make a purchase at 30% below market value.

One message, that has not yet been assimilated by the public, says Jovanovski, is that reputable auctioneers are usually also exceptionally good valuers and their reserve prices often reflect the right value.

"On every property sale that we are involved in, says Jovanovski, we will research the sale of at least ten properties sold recently in the area and we will compare these with the national averages, the growth rates for the province as well as the country as a whole. We will also try and assess the extra value given by special features, such as position and proximity to the major hubs and amenities. Taken together, these enable us to price very accurately."

"We therefore take on stock that we know we can sell and by this achieve a high success rate, with both the buyer and seller satisfied with the results."

For a sale to go through, says Jovanovski, not only must the price be right, but, in addition, there has to be a demand for that sort of product in that area - and the owner should always allow the auctioneer to spend sufficient sums to advertise and publicize the property fully.

Most of these conditions are, adds Jovanovski, met when sales of repossessed properties are handled for the banks- and that is one reason why these attract buyers and usually go fast.

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 19 Jan 2018
      Extending from Randfontein in the west to Roodepoort in the east and including the towns of Krugersdorp and Magaliesburg, the West Rand has a plethora of property available to residents who choose to make this unique area their home.
    • 19 Jan 2018
      When it comes to financial planning, doing the work to ensure you’re prepared for unexpected emergencies is just as important as ticking off your other goals and New Year’s resolutions. The beginning of the year is also the perfect time to review your various insurance policies.
    • 19 Jan 2018
      No surprises at the first Monetary Policy Committee of 2018, as Reserve Bank Governor, Lesetja Kganyago, announced that the interest rates would stay at their current levels.
    • 18 Jan 2018
      The Southern Suburbs make up some of the most popular residential areas in Cape Town, comprising charming groups of suburbs which lie to the south-east of the slopes of Table Mountain. It is seen as the city's most expensive residential neighbourhoods with a choice of various private schools, upmarket eateries, wine estates, beautiful homes and trendy apartments.
    • 18 Jan 2018
      New year, new goals! If you’ve resolved to purchase your first property in 2018, then this 6-step guide from the Rawson Property Group is a must-read. It will help you navigate and simplify what is often be seen as a confusing process of buying your first home – right from the house-hunt to the house-warming.
    • 17 Jan 2018
      While the current property market may still favour buyers, it doesn’t mean that they shouldn’t be well prepared before putting in an offer to purchase.
    • 17 Jan 2018
      Lightstone lists Blair Atholl as the most expensive suburb with an average house price of R11.2 million, followed by Westcliff (R10.5 million), Dunkeld (R9.3 million), Sandhurst (R9.1 million) and Inanda (R7.2 million).
    • 17 Jan 2018
      As it currently stands, there are four main ways in which a home can be bought in South Africa, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, who adds that deciding in which legal entity to purchase the property is not a decision that should be entered into lightly, as each has its pros and cons.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us