There is often debate and conflict between Auctioneers and Estate Agents as to which is the best method of sale. To be frank both methods have an extremely important role to play in the Property market, be it residential, commercial or industrial.
Movable Assets can be sold in many different ways i.e. Privately, through specialized Dealers of furniture, vehicles, Antiques and fine art, implements, machinery and heavy transport equipment. This method can sometimes be time consuming and tedious and often will result in the quality goods being sold whilst the below standard goods remain unsold. Only an Auctioneer is in a position to consolidate fixed property, quality movable assets and below standard assets and successfully have a total disposal sale.
It is for this reason that the following tips are offered in assisting you as a Seller to make a decision as to what will best suit your requirements.
- METHOD OF SALE : Decide after consultation with Agents and Auctioneers as to which method will best suit your needs. i.e. Auction or Private Treaty.
- VALUATION : Get a Professional Appraisal or Valuation on the Property and Movable Assets which are to be sold. Make it quite clear to the Valuer or Appraiser that this Valuation must be market related in the sense of realising market related values for the purpose of disposing of either fixed property or movable assets. An insurance valuation or replacement valuation is of no use to a Seller. The values which you receive will always be gross selling prices exclusive of Auctioneers / Agents commissions and Vat on the commission.
- COMMISSION : Auctioneers have different approaches and ideas on whether to charge a buyers commission or a sellers commission. In our opinion the Sellers commission is the better option as traditionally it has always been the Seller who pays the commission. The reasons for this are that it is difficult enough in trying times for Purchasers to be able to come up with deposits, pay Transfer costs i.e. Duty, Bond registration costs, stamp duty and Attorneys fees. Let alone ask them to pay the Auctioneers commission.
- YOUR DECISION : Do not be influenced by inflated values as to which Agent or Auctioneer you end up appointing as you may be disappointed with the end result. Rather be realistic in your expectations and use the advice given my experts wisely.
- MANDATE : Once you have decided on the firm of Auctioneers or Estate Agents who services you would like to use and you feel comfortable with this decision, always give the Auctioneer / Agent a sole mandate as this gives the company an extra incentive to perform and produce results. Lengthy mandates are, in our opinion, unnecessary and should not be for a period of longer than 120 days.
- MOVABLE ASSETS : Where there are movable assets in the way of furniture, vehicles, equipment and such like that need to be disposed of as well as the property, never sell off the quality movable assets and then expect an Auctioneer to sell off the below average goods and produce results that may have been attained had all the goods being kept as a complete package.