Selling a property on auction: High Street Auctions provides its clients with a transparent and easy to understand process for selling property on auction.
The auction process is a dynamic and exciting one that offers many benefits for you, the seller, such as:
Expert advice on the assessment and sale of your property
The benefit of the High Street Auctions database of property buyers and extensive marketing platforms
A quick sales cycle of approximately 4-6 weeks
A sale agreement in which the seller's terms of sale and the minimum selling price is protected
A well-managed process where the prospective buyers have conducted their due diligence prior to the auction event
The buyer pays the auctioneer's fee, not the seller
A healthy and competitive environment at the auction event where the best possible price on the day can be achieved on the property
There is no ceiling on the value that can be achieved on auction
The auction process to follow when selling a property:
The first step to take when you are interested in selling a property is to call High Street Auctions on 011 684 2707 or make an enquiry here. One of our experienced Sales Executives will contact you shortly to discuss your property in more detail and answer any questions relating to the auction process.
One of our property specialists will confirm a time to meet with you to understand your needs and conduct a thorough due diligence and assessment on the property. At this stage it would be helpful to acquire information on the property such as building plans, lease agreements, municipal accounts, etc. The information required would obviously be a function of the type of property under discussion (retail, industrial, residential, commercial, hospitality or undeveloped land).
Once we have completed the due diligence and assessment process one of our Sales Executives will take you through the findings and provide the necessary advice related to the sale of the property.
At this stage a formal proposal will be discussed for your consideration including the mandate options, marketing strategies and costs and conditions of sale of the property.
Once this process has been concluded successfully we would enter into an agreement and conclude a mandate for High Street Auctions to market and promote the property for sale at a predetermined auction date.
The ability of High Street Auctions to reach and attract the right profile of buyer to the auction event will impact on the success of the transaction and on the value achieved for the property. A key driver of success is the company's marketing capability.
Over time we have established the ideal marketing mix for reaching the target market. The following marketing strategies improve the results for the benefit of the seller:
Brand marketing: High Street Auctions invests in developing its brand and company in the media in order to build confidence for its auction platform in the market. Our clients benefit directly from this activity in terms of attracting quality sellers and buyers to the auction platform and High Street Auctions events.
Matching of buyers and properties via our referral system: We are able to capture new buyers into our national buyer's system on a daily basis. These are matched with the properties being serviced by the Sales Executives and a support team.
Online Presence: Through our well marketed website, www.highstreetauctions.com, which showcases our auction stock within South Africa, we provide the viewer with a comfortable, easy to navigate experience. In addition to this dedicated emailers called "From The Podium" are customised and sent to our extensive database.
Signage boards: These will be prominently be placed outside your property and surrounding areas, which have proven to positively influence the perception of value that buyers will have of your property, as well as to drive the call-to-action to bring all potential buyers to the auction event.
Print Advertising: Brand and featured property adverts are placed regularly in appropriate publications to maintain top-of-mind awareness and future auctions.
Public Relations: Our dedicated PR team ensures that our brand is the voice of the property Auction Industry in the media and as experts who are knowledgeable of market conditions and trends. This in turn ensures that our brand name is consistently established in the minds of the buyers and sellers. Whilst discretion and sensitivity to your needs are of paramount importance to us, a customised public relations campaign can build upon a newsworthy, unique selling feature of your property.
Property catalogue: Will showcase your property in an online and printed format.
Property Viewing: Our specialist Sales Executives manage information flow with interested buyers including the process of visiting and viewing the property. This process is essential in terms of evaluating levels of interest, concerns and capabilities of the buyer. Managed professionally this increases the probability of success of the auction.
High Street Auctions compile detailed and comprehensive "Investor Packs" that are made available to interested buyers upon request to assist in informing their purchasing decisions. This process is carefully managed by the relevant Sales Executives who interact directly with prospective buyers and provide them with the necessary information, answers to questions and advice about the properties. This process is also tracked and recorded so that valuable feedback can be provided back to the seller throughout the process.
The Auction Event
High Street Auctions host the auction events at the prestigious Summer Place venue in Hyde Park where sellers and buyers are treated to excellent organisation and fine catering. Buyers attending the auction are generally pre-registered or they register on the day with the necessary FICA documents and a registration deposit. The High Street Auctions team of experts are also present on the day to assist sellers and buyers with proceedings and answer any questions that the buyers may have. The rules of auction and the auction process are then managed by a professional auctioneer. Our Auctioneer is considered to be the best in the country and the events are as entertaining as they are exciting. Once the auction has concluded all the highest bidders are taken to the signing room where the conditions of sale are signed and the necessary deposits paid. Several payment facilities are made available on-site.
After the Auction Event
After the sale agreements have been signed by all parties and the deposits paid into the High Street Trust account, the highest bids are submitted to the sellers for confirmation. Once the offers have been accepted, copies of the agreements and all supporting documentation are delivered to the transferring attorneys who attend to the registration of transfer of the properties.
What kinds of properties can be sold on auction? Most properties could be sold on auction. Reasons for selling property on auction include: Getting the true market value for the property, selling through a quick sales cycle, achieving extended reach into the market, accessing broader base of potential buyers through effective marketing, execution of a forced sale (liquidations, deceased estates and legal instructions), a low cost option, a need for transparency and easy to understand processes and access to property experts employed by High Street Auctions to name a few.
Do I need to sign a mandate for High Street Auctions to take my property to auction? Yes, there is a legal requirement for you to provide us with a signed sole mandate agreement in order for us to promote and sell your property.
What is it going to cost me? The primary cost would be dependent on which marketing strategies are employed to promote the property in the target market. These costs are generally affected by the type of property, location and value. A detailed and tailored marketing campaign will be discussed with you at an appointment with a High Street Auctions property specialist.
What if the price I want is not achieved at the auction? Firstly the seller is protected under the conditions of sale where the property will not be sold if the reserve price is not met. This mitigates the seller's risk in the auction process. The final hammer price will however be presented to the seller for consideration in the event that the reserve is not met on auction day.
Our engagement procedure with sellers aims to establish a suitable reserve price during our evaluation and assessment process which generally negates the possibility of not achieving the required price at the auction.
What happens if the buyer breaches the sales agreement? Registered buyers would have agreed to the terms of auction and failure to comply with these terms allows the seller to place the buyer in breach of contract. If the buyer does not rectify his breach within the required period then the seller has the right to cancel the sale and take further action. The buyer would also then lose the substantial deposit paid following the auction.
So where to from here? Our team of property experts is available to take your property to auction. Call High Street Auctions on 011 684 2707 or make an enquiry here.
Buying a property on auction: High Street Auctions provides its clients with a transparent and easy to understand process for buying property on auction. We also ensure that prospective buyers are supported, throughout the property evaluation and buying process, by experienced property specialists.
Several advantages available to prospective buyers include:
Most of the information related to properties for sale or the processes involved with buying property is available on our website which is accessible on a 24/7 basis.
We provide buyers with direct access to our team of Sales Executives that can assist buyers by providing them with all the information and advice related to a particular property and assist them, personally, through the registration and auction process.
The investor packs that are compiled on properties are comprehensive and with the specialist advice available through the professionals at the company would provide the buyer with clarity and confidence in what they are buying.
The auction company would have secured exclusive mandates on the properties so, subject to confirmation by the seller, the highest bidder gets the property without any further negotiation.
Many great deals on properties are available at High Street Auctions especially as buyers get to benefit of a true supply and demand transaction environment.
In order to buy a property on auction the following general terms apply:
Pre-registration by filling in our registration form, sending through your FICA documents (Copy of ID book, proof of residence and letter of authority to sign on behalf of a juristic entity), and paying your registration fee.
Upon successfully purchasing a property on auction a deposit of 16.5% deposit is payable.
The buyer is generally responsible for paying the auctioneer's commission upon successfully purchasing a property on auction in addition to the final highest bid or "hammer price".
If the buyer is unable to attend the auction event they may bid via telephone proxy.
All terms and conditions related to buying a property on auction are available on the website
High Street Auctions is renowned for hosting memorable auction events that are well catered and very entertaining. Buyers benefit from conducting business in a well-controlled and expertly managed environment.
For any enquiries related to buying a property please call us on 011 684 2707 or make an enquiry through our website. One of our specialist Sales Executives will contact you to discuss your requirements in more detail and answer any questions relating to the auction process.
How do I register for the auction? We have an easy registration process where an application form is completed and the necessary FICA documentation is provided with a refundable deposit. In terms of the FICA documentation the buyer's ID book, proof of residence and letter of authority to sign on behalf of a juristic entity would be required. The refundable deposit could be paid by either credit card, EFT or bank guaranteed cheque.
It is advisable that the registration process be undertaken online at your convenience although all the necessary facilities would also be made available on the day at the auction venue prior to the auction.
Can I inspect the property before the auction? We advise prospective buyers to conduct physical inspections of the property prior to the auction. One of our Sales Executives will gladly meet you at the viewing of the property and answer any questions you may have.
Who pays the auctioneer's commission? The auctioneers' fee is paid by the buyer over and above the bid (Hammer) price.
Is there a reserve price on all lots? Most lots are auctioned with a reserve price in place. Should the highest bid at the auction not meet the reserve price then the seller has the option to reject or accept the final bid (hammer) price.
What is the deposit amount? The deposit is 16.5%. This is payable at the auction where the necessary payment facilities are available.
What do I do if I cannot make the auction? We recommend that all prospective buyers attend the auction events but in cases where this is not possible we have a facility available where buyers could participate via proxy (where someone else bids on the buyer's behalf) or via telephone. Our Sales Executives could assist you through this process.