WHAT do property auctioneers actually do? Well, quite a lot!
First they check for any debt attaching to the property and, if necessary, negotiate with creditors for time to complete a sale.
They inspect the property, advise the seller on realistic pricing, and obtain copies of the title deed and any other relevant legal or planning documentation.
They can then prepare a detailed marketing and sales brochure
A budget must be agreed to cover advertising, signage, flyers, auction brochures, travel and administration costs.
Costs are payable in advance – but bear in mind that it’s the buyer and not the seller who pays commission.
Advertising copy is drawn up and space booked in suitable publications covering a period of two to three weeks prior to the sale.
A suitable date for auction is selected and if the property is not easily accessible, or if several properties are being offered for sale simultaneously, an alternative venue is selected and visible signage put in place.
Arrangements are made for prior viewing and information brochures and the terms and conditions of auction are made availabe to potential buyers.
On the day of sale facilities must be in place to register potential buyers in accordance with the requirements of the CPA and FICA.
A bidder’s role and record of every bid is maintained (to be made available for later public scrutiny).
On the fall of the hammer the auctioneer ensures that the buyer completes the agreement of sale fully and makes payment of the deposit and commission into the attorney’s trust account by EFT or bank guaranteed cheque.
Finally, he must carry out continuous follow-up with all parties to ensure that transfer takes place as speedily as possible.
