ClareMart - Auction Group

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31 THIRD BEACH ROAD, CAPE TOWN, WESTERN CAPE

DIVORCE SETTLEMENT

Welcome

The New Year is over and it is back to business as usual across all sectors. The property market has certainly seen a thriving start to 2012 with some unexpected results already so early in the year. As I mentioned last month, we are living in unpredictable times. Holding on to certain attitudes without expecting the unexpected may result in lost opportunities.

Recently there was a commentary made by an industry member on the state of the property market in 2012. The statement reflected the opinion of that auction house which was that South African sellers of property are in a “doomsday” situation. Due to recession and personal financing, they will have to accept that the market will only pay below value prices for their property. This gross sensationalism is often used as a scare tactic to coerce sellers into placing their property on the market at low prices and accepting lower offers.

To be frank, although this statement does have an element of truth, it unfortunately does not create a sense of understanding amongst sellers that they need to be open to market related offers. What it does do, is create a sense of panic, whereby sellers “read between the lines” and come to the conclusion that they should not be selling property in 2012 at all.

This is damaging for the entire industry as it creates a stale-mate whereby purchasers are keen to buy properties that are not on the market and sellers, desperate to sell, are holding on to properties in the hope of 2013 being “the promised year” for a market upswing.

No one knows how the markets will react and our Group already in 2012 has sold various properties for higher than their market evaluations. My message to buyers and sellers of property for 2012 is this: Auctions allow for competitive bidding in a transparent forum. Those buyers who want a particular property will bid for it and pay what they see the value to be. Should it not meet the sellers expected price, then a regroup of ideas may be necessary. In these circumstances, opportunities to sell should not be lost in the hope of securing an uncertain outcome.

Yours sincerely,
Jonathan Smiedt

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Auction Tips

GO WINDOW SHOPPING
Examine the area and compare prices of similar properties to other areas. The more window shopping you do the more informed the decision you make. Information on all current and future auctions can be viewed at www.claremart.co.za, or in the property supplements which are published every weekend.Do your homework and do visit the properties on their show dates

REGISTER YOUR INTERESTS
Contact the auctioneer or agent before the auction and register your interest. If changes occur or more information becomes available the auctioneer can contact you.

OBTAIN DOCUMENTATION
It is important to clarify details such as settlement terms, deposits and fixtures before the auction commence. Ask your ClareMart Auction Agent for a property catalogue, which will contain all the necessary information.

ARRANGE YOUR FINANCES AND DECIDE ON LIMITATIONS
Think about setting yourself a price limit and remember to provide for the auctioneers commission and VAT in your calculations. Speak to your bank or financier before the auction date.

UNDERSTAND ALL TERMS AND CONDITIONS
Get hold of a copy of the Conditions of Sale document prior to the auction. Feel free to ask questions or ask the auctioneer to explain anything you might not understand.

REMEMBER TO BRING YOUR ID & THE DEPOSIT
Deposits and auctioneers commission are payable on the fall of the hammer. The ClareMart Auction Group will only accept bank guaranteed cheques and electronic transfers. The balance is payable on transfer.

REGISTRATION
Register before the auction and obtain your bidders card and catalogue before the auction starts.

WHILST BIDDING
Remember how an Auction looks from the Auctioneer’s perspective. They are often looking at a large number of people who are invariably turning around, whispering etc. Stand in clear sight of the Auctioneer and make your first bid obvious to them. Make sure the Auctioneer understands what you are doing. Bid early, clearly and confidently and avoid unusual sign language that may be misunderstood. Buyers are usually reluctant to start bidding at auctions but the best policy is to bid loudly and confidently signalling to all other bidders you intend to purchase the property or should the reserve price not be reached that you are given an opportunity in any further negotiations.

SIGNING THE CONDITIONS OF SALE
When a property has been successfully knocked down, a ClareMart Auction Group representative will escort you to the Signing Room, where you will be asked to the sign the Conditions of Sale. You can do so immediately or if you wish to bid on another property on auction, you can request to sign at the end of the proceedings.