The countrywide publicity given to alleged unethical practices by a leading SA auctioneering group have had the unfortunate result of creating the impression that such practices are widespread in the auction world – but this is very far from being the case, says Tanya Jovanovski, principal of Rawson Auctions Western Cape franchise.

All bidders or potential bidders who come to a Rawson auction (which is usually held on site) are required to register at the outset and the registration list is always available for inspection.

Furthermore, said Jovanovski, when a buyer asks what the reserve price is, she will always reveal it.

“I firmly believe that it is in both the buyer’s and the seller’s interest to know what the reserve price is and I also accept that it is the auctioneer’s duty to justify all prices to sellers and buyers by being able to compare them with those of similar properties sold in the area.”

If an open, transparent bidding process is adopted, said Jovanovski, it will almost invariably result in a true market-related price being achieved – and, she added, there are big advantages in going the auction route.

“Auctions set a definite sale date and therefore force those interested to make a decision.  Furthermore, properties or goods sold on auction are well advertised and attract attention.”

If, said Jovanovski, her team are given a pre-auction offer they will, as required by law, always submit it to the seller for consideration even if it is below the reserve price. They will also, she said, advise on the chances of getting a better offer

Asked for a general comment on the way in which auctions are run, Jovanovski said that her one complaint is that some – not all – of those responsible for the issuing of auction mandates, especially liquidators and attorneys, appear to be part of a closed shop setup into which it is very difficult for a newcomer to break.

“Whether this closed shop is supported by incentive or kickback payments from the preferred auctioneers I do not know, but in light of the recent allegations obviously the question has to be asked.”

The good news, said Jovanovski, is that auctioneering is now an accepted part of the property marketing world and this year she and her staff are budgeting for a significant increase in turnover.

This could in part be due to the perception that, as members of the Rawson Group they are obliged to abide by a strict code of ethics drawn up by the Rawson directorate.