Recent successful farm sales, however, would suggest that farmers are becoming more open to the notion of buying and selling fixed property on auction. This can be attributed to some key facts associated with the auction process that are beneficial to both buyer and seller, facts which have seen auctions become the first-choice assets transaction mechanism internationally. 

These facts include: 

• Conclusive unsuspensive transactions without lengthy negotiations and suspensive conditions for both buyer and seller.
• Tailored marketing campaigns that generate awareness and ensure active participation. 
• A seller’s interests are protected by their reserve price which is not disclosed to the market. Additionally, there is no price ceiling on where the final bid will end.  
• The price and the value of the property is always protected, and the property auction platform is not seen as a sales mechanism for distressed properties. 
• All buyer’s interests are protected by the vetting process knowing they are only competing against capable buyers. The nature of the auction motivates the highest offer and drives decision making.
• An additional benefit has been the ‘buy in’ by financial institutions into the auction methodology. These financial institutions are streamlining their lending processes and facilities to accommodate farmers looking to buy property on auction.  

“Hopefully the greater agricultural market will start to realise the true benefit of property auctions when conducted correctly and that the negative connotation attached to auctions within the fixed property space will disappear completely”, ends Tom Hodgson.

Tom Hodgson is the 2022 South African National Junior Auctioneer Champion.

For more information visit www.in2assets.com