Auctions or Public Sale are probably one of the oldest and most dynamic means of commerce, yet the auction of residential property has been slow to catch on.  “The reason,” says Michael Pashut, director of Cape Town-based Auction Place, at the official launch of the company this week, “is that in the past, property auction was erroneously considered the domain of those with big money or for astute bargain hunters.  For many people auctions conjure up images of expensive artwork or liquidation sales, but it is fast becoming an accepted sales choice for real estate.”

In Australia, it is the norm to sell property via auction.  South Africa and many other countries are now following suit.

Pashut continues, “What better way to buy and sell real estate than through the transparent auction process.  It is this transparency that makes auctions so equitable.  Everyone is on the same page at an auction, there are no hidden agendas and you immediately know who, and what, you are bidding against.”  He says that the opportunity to see other bidders and how far they will bid, also gives you a feel for the perceived value of the property.  

Auction companies have no bias towards either party in the transaction.  They act as facilitators only and part of the service offered by Auction Place is a full briefing and education process for potential buyers and sellers.  “We will be holding regular seminars to explain the auction process to those who are not au fait with how to bid, what costs are involved and the terms used,” explains Pashut.  “In addition we offer an A to Z of allied services for our clients whether it be an independent valuation and assessment to bond originations, conveyancing, through sectional title clearances.  You will have skilled and qualified people to assist you, plus we have a fully comprehensive website to guide you through the process.” 

Other benefits to using Auction Place is its zero advertising costs for the seller and the fact that it is negotiable regarding buyer’s commissions. 

“Auctions tend to reflect the real value of the property,” says Pashut.  “That’s good news for buyers and a look at some of the top properties in Cape Town sold via auction bears this out.” 

Auction Place is the first auction house to have a state-of-the-art auction facility at its head office on the Foreshore in Cape Town, offering customers the flexibility of having their property auctioned without the crowds in their home.  Auction Place will conduct auctions nationwide with new corporate offices set to open in Johannesburg, Durban and the Eastern Cape before year-end.