Auction Sales often attract a varied and wide selection of individuals from all walks of life whom all ultimately are driven by forces of human nature and are, at heart traders, dealers or private individuals in need of an item or items being offered for sale by Auctioneers.
It must be noted that as a buyer with so many auctioneering houses and companies operating in South Africa, that there are different terms and conditions and different requirements, depending on which company you are dealing with as a buyer, we have compiled a list of tips which you may want to use as a guide when considering whether to attend a particular auction sale.
- ADVERTISING: Auction sales are brought to the Publics attention in many different ways and with different and varied advertising media being used. These can be :
- Via the internet
- National and Regional Newspapers
- Posters and signboards
- Pamphlet and leaflet distribution
- Occasionally via Radio / TV advertising
- TERMS AND CONDITIONS: If you should see an advertisement advertising an upcoming auction which is of interest to you, diarise the time and the date of the sale, also make sure of preview dates. Contact the Auctioneering company concerned to obtain a copy of The Conditions of Sale. Always check the following, especially in the case of fixed property :
- Deposit requirements and payment terms which you will be required to contractually meet.
- Auctioneers commission if payable by the Buyer or Seller.
- Ascertain if there are any outstanding costs due to local municipalities, Body Corporates or any other costs that would be for your account and obviously factor this into your final bid.
- OBTAINING IMPORTANT INFO: Make sure that what has been advertised is in fact what will be sold. i.e. obtain the full Legal description, sizes of land, sizes of improvements, monthly rates and taxes/levies, outstanding bonds and most importantly time frame with which to produce guarantees or balance of payment to the Auctioneers.
- PURCHASE PRICE: Prior to deciding on whether to attend the sale, spend as much time as possible researching and doing your homework on what a realistic maximum amount would be to suit your budget and set this maximum, taking into consideration all the costs which may be levied to the buyers account, i.e. auctioneers commissions, vat (if applicable), transfer costs, roadworthy costs, repairs, maintenance, electrical certificates, etc., etc., Once you have decided on a maximum outlay always adhere to this and try, wherever possible, not to get caught up in Auction fever which will result in you, in all likelihood, having over paid on the day.
- WHEELING AND DEALING: There are many individuals who specialize in attending some six to eight auction sales per week. They are commonly referred to as “Dealers”. These individuals are highly skilled with an extremely acute eye and knowledge of what it is that they are buying. Should you elect to make auction sales a form of income, be it primary or alternate income, always select a field which firstly, is of interest to you and secondly, which you will have some knowledge of buying prices and ultimate resale prices. DO NOT BECOME DISILLUSIONED, if after attending two or three auctions, in your opinion prices were unrealistically high. Remember, as I said above, occasionally some Dealers, who attend six to eight auctions a week will come away from virtually every sale without having made a single purchase. The reverse can happen the following week whereby every sale attended, price will suit your budget and bargains will be had.
- LASTLY… Buyers must always do as much research and homework as possible before attending an Auction sale and if need be attend at least 4 – 5 auction sales before bidding on any item. This way you will be become familiar with the different terms and conditions and different styles for different Auctioneers.
Our recommendation is to regularly buy your regional newspaper which best supports an Auctioneering section dedicated to upcoming Auctions. These are normally newspapers which are distributed on a Friday.