Seller's Education
In this section you will find information on why selling your
property or asset on auction is the right move. Why choose
Alliance? What to do? What we do? All these questions and more will
be answered. For an overview of this section why not watch our
Seller's education video below:
Why sell on auction
Auctions are a centuries old, proven method of sale and are now
the fastest growing sector of the property market. They have
quickly become a first choice option for selling property in South
Africa - and it's not difficult to see why - there really are so
many advantages for sellers. If you're in the market to sell,
here's why you should consider the auction route:
Auctions are quick
Auctions offer an extremely speedy means to selling an asset. In
fact from the instruction to sell, to the registration of an
auctioned property or asset, the entire process can happen in as
short a period of time as 4 - 5 weeks, making auctions the quickest
method of monetising your asset.
Auctions ensure maximum value
There is no ceiling on the maximum price that a property or
asset can fetch on auction. This means that competitive bidding
will ensure that the highest value is achieved when selling a
property on auction. The competitive nature of auctions is such
that the price fetched can often exceed the expectations of the
seller.
Auctions are transparent
Every transaction takes place transparently and in the open,
with all terms and conditions available for public scrutiny. There
are no deals behind closed doors and no behind the scenes dealings
or back and forth. With an auction, what you see is what you get.
The reserve mechanism means there will always be a minimum price,
which will protect you as the seller and ensure that your
requirements are met.
Auctions are the real deal
Only pre-qualified, focused, serious buyers participate: no
protracted negotiations, no suspensive clauses, nor other potential
deal breakers. An auction offers a high degree of certainty that a
deal will be achieved on a given day. In tough markets the
uncertainty of a property staying on the market for months
disappears.
Auctions attract market interest
An auction takes place on a fixed date. Buyers know that a
willing seller has brought an asset to market - and when the hammer
falls, the deal will be done. This ensures that the asset is highly
contested as a result of the maximum number of prospective bidders
turning up at an auction.
Why sell with Alliance
When you choose Auction Alliance as your partner in the wealth
creation, investment or asset disposal process you are choosing the
best people for the job. With our track record and long list of
iconic sales, we've helped put many of our valued clients ahead of
the game. Here's why you should choose us:
South Africa's largest auction group
We are by volume and by value, the country's largest auction
group. We sell an average of R6 billion worth of real estate every
year and have been connecting buyers and sellers of all asset types
for almost two decades. With our extensive industry know-how we are
experienced at finding the right buyers for our sellers assets.
An impressive track record
We've facilitated some of the country's most high profile
auction events and in doing so have built up an extremely
impressive list of top sales. These sales are testament to the fact
that we continue to break the records and set the industry
standards, year after year and are the proven industry leaders.
We're the marketing experts
With an annual marketing spend of around R50 million we're well
practiced and experienced at getting an asset maximum exposure to
the market. Our award-winning marketers apply a variety of tactics
to ensure the widest possible reach is attained.
In your city, around the world
Not only do we have substantial offices in every major centre in
South Africa, we've also extended our reach beyond these borders.
We operate in the Middle East, and have affiliations in the UK, USA
and Australia. We attract buyers from all continents and in fact
regard ourselves as an international company, operating in South
Africa.
Our value added services
Our team includes a variety of industry experts who work hard to
ensure that you receive the highest quality service and information
available. We have an array of value-added services, designed for
sellers, which include financial guarantees, international
marketing programmes, and partnerships with other brokers.
Before the auction
The marketing period starts four to five before a sale with the
publication of the online and printed catalogues. These detail all
the lots that will be offered in the auction sale and colour
photographs of each property. One of our qualified valuers will be
instructed to provide a comprehensive and independent information
pack which will include title deed information, zoning
certificates, municipal information and tenancy schedules (if
any).
Legal documentation
The legal pack will be made available to you. We shall also
arrange for prospective Buyers to receive documents by post via
24-48 hour dispatch service if required anywhere in the world.
Marketing
In addition to posting the properties on our
website, emailing our 100,000 on-line registered property
investors, and mailing the catalogue to approximately 10, 000
people, we will target individuals who have previously expressed an
interest in similar properties, as well as adjacent occupiers,
local agents, local developers, builders and property companies and
a myriad of online and digital channels.
On the advertising side, we take out substantial
space in key property publications and have preferential placements
in newspapers around the country, giving details of all properties
with professional photography. We also place advertisements in
local newspapers where we often achieve editorial coverage. We
spend approximately R65 million a year in auction advertisements
alone.
A large amount of other local marketing is done including
mail-drops, large and prominent signage on the property and street
pole advertising in the surrounding
area.
In addition to posting the properties on our website, emailing
our 100,000 on-line registered property investors, and mailing the
catalogue to approximately 10, 000 people, we will target
individuals who have previously expressed an interest in similar
properties, as well as adjacent occupiers, local agents, local
developers, builders and property companies and a myriad of online
and digital channels.
On the advertising side, we take out substantial space in key
property publications and have preferential placements in
newspapers around the country, giving details of all properties
with professional photography. We also place advertisements in
local newspapers where we often achieve editorial coverage. We
spend approximately R65 million a year in auction advertisements
alone.
A large amount of other local marketing is done including
mail-drops, large and prominent signage on the property and street
pole advertising in the surrounding area.
Public enquiries
During this period, all interest and enquiries are meticulously
logged by us in our customised workflow and CRM systems. We will
maintain close contacts with potential Buyers and advise you of the
strength of interest in your property as well as report any other
pertinent issues prior to the auction sale.
Reserve price
Together, we will agree on a reserve price for your property
when the mandate is signed. This is a level below which we will not
be authorised to sell in terms of the auction mandate. It is
important that this is set realistically.
Viewing and inspections
Potential purchasers may want to view the property during the
marketing period and receive our independent valuation reports and
research. We facilitate access and public viewings. In most cases,
pre - arranged times are set up for viewing. Details will be
printed in each catalogue and in newspaper advertisements.
At the auction
We hold all our auctions either on site or at leading and
central city hotels. It is not uncommon for 500 people to attend
our larger multiple events creating a buzz and an atmosphere which
are crucial to the success of the sale.
All Buyers go through a scrutinising registration process which
includes signing acceptance of the Conditions of Sale and
acknowledging that they they are aware of the terms and conditions
of the auction contract. Each Buyer has to pay a refundable deposit
in order to enter the auction sale.
For sellers it is important to note that the fall of the hammer
represents a final and binding sale and the successful bidder is
legally obliged to pay a deposit, representing a percentage of the
purchase price, and sign a Memorandum of Sale before leaving the
auction venue. The Conditions of Sale are sent to your attorney and
if sent to an attorney on our panel they will advise us regarding
the transfer process and any legal matters arising.
The buyer has to purchase your property for the price they have
bid together with the auction commission which is payable to us.
They may not renegotiate and cannot change any of the terms
stipulated. The deposit is held in Trust until registration of
transfer.
If you have never sold at an auction before, you may want to
attend one of our auctions. The atmosphere of our exhilarating
auction events can be extremely exciting and competitive. The
prices achieved at the auction can often be higher than those
achieved by private treaty.
The Costs
We charge a fee to cover the inspection of the property,
marketing, advertising and catalogue production cost. The fee will
depend on what has been negotiated with the relevant Business
Development Manager and how much advertising is conducted.
In the event of a sale our commission is payable by the
purchaser in terms of the Conditions of Sale. We work on risk; if
there is no successful sale there is no commission payable.
Our mandate deals with the auction entry fee and the Buyer's
commission rate.
