The identically dressed ushers attending 300 people gathered in the ballroom of the Sandton Hilton last week gave the event the air of an evangelical church meeting. Yet it was simply one of the slickly choreographed property auctions that have generated R1-billion in sales in just three months.
As a bidder hesitated, ushers gathered around to comfort and encourage him, and the auctioneer stopped his chatter. The tension grew and the crowd waited. It was impossible to tell whether the buyer was going to raise his bid or confess his sins.
"The interaction on the floor is critical to the results," says Rael Levitt, the proselytising CEO of Auction Alliance, who has imported the method from Australia. "By slowing the process down, we can get higher rates of confirmation by sellers - and better prices."
Preparing glossy brochures with property details, advertising and the rental of the ballroom costs up to R500,000 for an auction, he says, much of it paid by the sellers.
But the tactics have generated R400-million in sales and about R40-million in commissions for Levitt in three months and encouraged five competitors to adopt them.
Bidders ranged from small-town entrepreneurs after home-town hotels and shops to major developers eyeing Johannesburg high-rises. One high-profile Johannesburg property owner complained that the information was stronger on style than substance. But he seemed satisfied with his successful R6-million bid for a 12-floor Johannesburg CBD office and retail property.
Financial Mail
Publisher: I-Net Bridge
Source: I-Net Bridge
