by In2assets  |   February 16, 2023

Why Auctions should be the first choice

Why should Auction be the first choice when selling Commercial and Industrial Property? Property Auctions have gained huge popularity amongst property investors.

Selling commercial and industrial property can be a complex and time-consuming process when pursuing the conventional route. So, choosing the right method of sale is crucial to ensure a successful and profitable outcome. There are several methods of selling commercial and industrial property, but auctions should be the standard first choice for a variety of reasons. 

Transparency for all parties involved

Auctions provide transparency through a public bidding process with all interested parties participating on the same terms and conditions of sale. It is, effectively, equal playing ground for all registered and qualified buyers. Transparency plays a pivotal role in particular for big corporate companies and REITS ensuring accountability mainly due to the public and transparent nature of a Public Auction itself.

A property auction aims at finality 

Strict deadlines of the auction process ensure efficiency and finality. The auction process is timeline driven and ensures decision making from all parties involved. There are no long-drawn-out negotiations and there are no suspensive conditions or long due diligence periods.  

When the hammer falls the deal is done !!!

The Auction Platform pedestals the property right into the public’s eye

Auctions utilise specialised and tailor-made marketing campaigns generating maximum awareness and ensuring  qualified and screened  buyers attending the auction. Maximum exposure also guarantees maximum price realisation. These strategic marketing campaigns are facilitated by in-house qualified marketing specialists which is always the case with In2assets being a national real estate auction house with a footprint throughout SA

Competition will extract maximum value

Competitive bidding is one of the core features of the auction process generating momentum towards the highest bid the market is prepared to pay. This is why auctions remain the preferred asset disposal mechanism across multiple industries around the world from high value and rare art works, custom and vintage cars, to stud livestock and pedigree racehorses, all of which sell for millions of dollars. There is no reason why commercial and industrial property should be any different.  

Auction Rules provide certainty 

The tailor-made terms and conditions of the Rules of Auction provide certainty and conclusivity to the transaction. Once the gavel has fallen the property is considered sold. The buyer is required to pay a non-refundable deposit on the day of the auction ensuring compliance and commitment thus providing the seller with absolute financial security. 

Tom Hodgson, who is an associate Auctioneer at In2Assets Property Specialists, comments; “All too often the auction method is considered a last resort compared to a first-choice asset disposal mechanism. When a property is exposed into the market with a disclosed price, a price-tag is placed on the property initiating  a negotiation process lower than the disclosed asking price. The seller effectively places a price ceiling on his own property. By electing the auction platform, the seller places a non-disclosed reserve price on the property and not obliged to accept any offer below such reserve. The Seller at all times remains in control of the entire  process although competitive bidding maximises price . Speed, transparency, marketing exposure, competitive bidding and sales certainty provide the complete ingredients for a successful cocktail and sale by auction.

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