Online auctions: the new way to buy and sell property

Online auctions: the new way to buy and sell property

In the current economic climate, there is significant value to be had in certain property acquisitions – both residential and commercial, says MC du Toit, CEO Auctions and Sales for BidX1 South Africa, an online property trading platform.

While acquiring properties remains a sound investment, the method of acquiring these properties has recently changed in South Africa.

“Now acquiring property for sale on auction via an online platform is rapidly becoming a convenient and secure way of transacting. It’s a whole lot easier and quicker than physically attending an auction at a specified location, plus it’s secure and provides an opportunity to acquire a property at a value-for-money, market-related price.”

The first BIdX1 online auction, held on 10 April of this year, successfully sold 31 properties over the course of six hours. In total, 411 bids were placed across the 31 sales. The next auction takes place on 3 July on the BIdX1 platform and includes properties all over South Africa, including a number of bank sales.

On auction on 3 July through BidX1 South Africa and with a reserve price of R12.5 million is this luxury mansion with a separate guest suite in exclusive Eagle Canyon Golf Estate in Johannesburg. 

The benefits to sellers

Du Toit says the benefit to sellers is that the online auction method enables the entire process to be completely open and transparent. By providing a reserve price, a seller indicates to the market the price he/she is willing to accept. This affords buyers the opportunity to then compete/bid.

“We find that sellers are open to this platform as it provides both buyers and sellers with all the information required. On the day, bidders will enter into a binding agreement at the price which they are willing to bid – which is not always the case when negotiating in traditional property sales,” says du Toit.

Du Toit adds that it is, therefore, a misconception among some that selling via auction does not achieve a sound market-related price. By disclosing all the facts, sellers will achieve the best result, particularly as the auction method serves to create competition which in turn drives prices up.

The benefits to buyers

As for the benefits for buyers, du Toit adds: “Telling buyers what you are willing to accept and being open and honest about the price gives buyers the power. This allows buyers to decide what they perceive is a fair, market-related price.”

“Given the access to extensive online property information, today’s buyers tend to be very informed regarding property values and what, in turn, represents good value. This  tends to translate into our auction results being a win-win for both parties on the day.”

On auction on 3 July through BidX1 South Africa, and situated on the West Coast in Sandy Point Beach Estate in St Helena Bay, is this modern three-bedroom (all en-suite) home with self-contained flatlet and sea views throughout, with a reserve price of R4.5 million.

What to expect from the next auction

BidX1 South Africa’s auction on 3 July includes a range of appealing residential properties around South Africa as well as a number of commercial properties, including two prime, well-located commercial properties in Gauteng suitable for owner-occupiers or investors.

“The opening bid is not to be confused with a reserve price. An opening bid, which normally applies to bank stock, deceased estates, liquidations and the like, is the price at which bidding starts and which is subject to confirmation. A reserve price, on the other hand,  is the minimum price a private seller is prepared to accept for his/her property.  Meaning that, if this is in fact achieved by way of the first bid at the auction, then the property is, by definition, immediately sold.”

Included in the auction is a sizeable, landmark corporate office and storage warehouse. The property with development potential is located in Midrand, with frontage onto the N1 and with a reserve price of R29.5 million.

Also included is an immaculate hotel, events venue and conference centre in Benoni. Just 15km from OR Tambo International Airport, the venue has a reserve price of R20 million, including movables.

On auction on 3 July through BidX1 South Africa, and with a reserve price of R7.5 million is this home with its own private boma in upmarket Silver Lakes Golf Estate in Pretoria East.

Prime location in Benoni, only 15km from OR Tambo International Airport, this immaculate hotel, events venue and conference centre is to be auctioned on 3 July 2019 through BidX1.

In upmarket Silver Lakes Golf Estate in Pretoria East, overlooking the game reserve and with its own private boma is a four-bedroom, four-bathroom home with an elevator to all three levels.

Situated on 2 450sqm, this home has exceptional finishes including Rhodesian Teak cupboards and thousand-year-old leadwood pillars. Silver Lakes incorporates a Peter Matkovich Golf Course plus a game reserve which extends to some 77ha with zebra, kudu, blesbuck, bosbuck and springbuck. There are also a number of shopping malls in close proximity.

On auction on 3 July through BidX1 South Africa, and with a reserve price of R7.5 million is this home with its own private boma in upmarket Silver Lakes Golf Estate in Pretoria East.
In Erinvale Golf Estate in Somerset West in the heart of the Cape Winelands, a two-bedroom (both en-suite) character home in a private panhandle goes on auction on 3 July through BidX1 South Africa, with a reserve price R4.5 million.

In KwaZulu-Natal, in Bird Valley Estate at the foot of the Karkloof Mountain Range in Cramond in the KZN Midlands, a vacant erf of 2 680sqm will be auctioned. A haven for wildlife and birds just 30km from Pietermaritzburg, the estate lies just below the second largest indigenous forest in South Africa. This property has an opening bid of R350 000.

On auction on 3 July through BidX1 South Africa and with an opening bid of R350 000 is a vacant erf of 2 680sqm situated in Bird Valley Estate in the KZN Midlands.
For useful tips when bidding online click here 
For further information about the auction visit the bidX1 platform or email info@za.bidx1.com

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