The Sellers of these Properties have chosen the Auction Marketing Method in order to sell their properties in an
expedient and timely manner. Part of their reasoning includes the enormous amount of holding costs to maintain the
properties (e.g., rates and taxes, utilities, insurance, finance and other opportunity costs etc.). With these sales,
both the buyers and the sellers should be satisfied. The Buyer(s) should be able to obtain these properties at a fair
market price. The Sellers will be able to alleviate their burden of holding costs. Over the next ten years predictions
are that 35% to 50% of all real estate will be sold by auction marketing. Buyers pay a fair market price because of the
highest bid is the perceived value on the day.
Buyers purchase the properties with no guarantees in regards to the condition of the properties. Buyers shall rely
entirely on their own information, judgement, and their own inspection of the properties.
Yes. Most properties will have open public inspection periods and we recommend you perform any inspections or have the
property independently appraised before auction day. Regarding dates and times for inspection, please contact Stonehenge
Auctions.
All properties are auctioned subject to seller confirmation (a reserve auction) unless without reserve or the reserve
has been met. Properties sold subject to reserve, which it may not have reached during the bidding process, the highest bid
is subject to seller approval. Properties auctioned without reserve price, the property will sell to the highest bidder on
auction day.
Yes. However, the properties are being sold without suspensive conditions, “voetstoots”. Your finance requirements
should be arranged prior to auction day.
An auction provides a clean, time definite, exchange between the parties and traditionally allows the buyer to
minimize the number of intermediaries separating him/her from the seller. Stonehenge Auctions represents both buyer and
seller, we have the responsibility to treat all parties fairly.
Not at all. Using an auction to sell is merely a method of marketing that brings as many serious, qualified buyers
together as possible to competitively bid for your property. Very rarely does an auction generate a lower net price than
a traditional listing would bring after factoring in commission, holding costs and contingency costs. Many times we net
our clients more than the traditional selling method of listing and waiting for a buyer.
Your property will dictate the number of bidders that attend the auction event. Our marketing program will produce
buyers if you have a property desirable to the market. The marketing program will bring only qualified buyers who have
registered and are serious about acquiring property.
The auction method of disposing real estate offers several benefits, such as multiple buyers in the same room,
creating a competitive environment not realised above. Your property can be sold within 30 days on the day you want.
Properties often remain listed on the market for months, without an offer. It eliminates negotiation with the potential
buyers. There are only one or two open houses (previews), so you are not bothered with look loos at all hours. At an
auction the properties are sold “voetstoots”; with no suspensive conditions. You aren’t required to fix or
upgrade anything prior to selling your property if you choose. The price you receive for your property is based on a
competitive bidding process that isn’t locked into a fixed listed price; here you have unrestricted upside potential.
The seller does not pay a commission; the traditional method results in the selling price being reduced by agent’s fees.
Instead a buyer’s premium is in addition to the final bid price. Typically, a 10% commission is payable by the
seller.
The only costs you incur are for the marketing of your property. These costs vary depending on the value of your
property.
Very rarely does a property sell less than the net price you would receive from listing
through an estate agent. Actually, we usually sell for a higher price. Most of our clients prefer a reserve-style format
which completely protects our clients from a price that’s too low. You get the best of both worlds with our method of
selling property, a sale in just one month and often a price at or above what you expected.
We market and sell most properties within 90 days of the mandate signature date. In a buyer’s market, many properties are taking months to
sell through traditional channels, and when property values are deteriorating, time on market is very important.
In general there are three types of auctions we offer Reserve and Non-reserve auctions. To get the most interest for
your property we recommend a non-reserve auction, as the potential buyers know the property will be sold on the day of
the auction. A reserve auction can also attract a crowd of willing and able buyers but our clients have full control of
the final price. If the price is not acceptable, the price is simply rejected.