Real Estate

“TO SELL OR NOT TO SELL YOUR PROPERTY” This is the Million Rand Question?

David Soutter – CEO Reliance Auctions.

“Should I sell my property?” is a question that is ever present in the minds of property owners in this time of economic uncertainty.  In the current economic environment most property owner’s financial situation goes through a large degree of change.  Companies start retrenching staff and jobs are extremely difficult to find and retain, the ripple effect touches every facet of our economy, resulting in cost cutting and the offloading of thousands of properties. Banks are coming up with ingenious payment methods in an attempt to assist property owners ease their bond repayments, however there are thousands of casualties.

When the economy takes a down turn, it’s a matter of concern and a matter of time for some property owners.  They get caught up in the dilemma of “Should I sell my property? “ Well the answer to this depends on how severe your financial situation is.  If your Bank is breathing Hot Fire down your neck or you need to unlock cash flow, then selling is a favourable option.  Some property owners try to delay the sale process for as long as possible keeping it as a last resort, but in the interim are unable to service their repayments resulting in them getting further into debt.  A Seller needs to know when to cut their losses and remove the emotional attachment to their property before it totally engulfs them.

The irony is that should a property owner hold out until foreclosure the relevant Bank passes the property onto a Liquidator, who in turn engages the service of the Sheriff Of The Court. The property will then be sold on public auction normally without reserve.  Should there be a shortfall on what was achieved on auction and what you owe the Bank, the Bank will then refinance the shortfall, of which you are liable to pay.  A pretty doom and gloom situation.  I will re-emphasize the trick is to get out before it’s too late.

On the other hand nobody wants to sell if they don’t have to, so play open cards with and take the advice of your Bank.  Engage in constructive dialog with them, especially if you know that your financial situation will change, after all until your property is paid for, they are your financial partners.

HOW DO I SELL URGENTLY BUT STILL REMAIN IN CONTROL?

Most people who want to sell their property believe there is only one way to go about it and that is to go through an estate agent.  Well I’m pleased to say that I have good news for you, with the advancement in sales techniques new opportunities are made available for the property seller without having to pay inflated real estate commissions. Reliance Auctions is a seller’s “best friend,” why? :-

• Provide A Fast Sale – Reliance has a turnaround time of 21 days from mandate to sale.
• An Intense Marketing Campaign – We market the property extensively ensuring a large turnout.
• Urgency – The auction provides a close to the sale as a cutoff date is set.
• Fear Of Loss – The auction creates a fear of loss to prospective purchasers.
• Competition- Competition is always healthy, the more attendees the greater the competition.
• Non Suspensive Conditions- The sale of the property is not “subject to finance” or anything else.
• No Commission- The purchaser is liable for the auctioneer’s commission and not the seller.
• Reserve Price- There is a reserve price, this price is not disclosed to the public.
• Deposits- The successful purchaser puts down a non refundable deposit of 10% of the bid price.
• Higher Prices- Auction does offer a platform for higher prices; the more who attend creates a bidding frenzy and the sellers price can only go up.

Now who can say NO?