5 Reasons Why Online Auction is For You

Buying and selling properties via online auction has become increasingly popular over the past few years.?

Galetti’s research estimates that around 5% of commercial real estate sales in South Africa are transacted via online bidding platforms, a number that we expect to grow to 25% by the end of 2026. Online auctions represent a simple and transparent way to sell property in the Digital Age.

And while online auction has become more ‘mainstream’, selecting the right auction partner remains crucial to the success of the sale.

Galetti’s Auction Division operates nationwide and has facilitated transactions to the value of R1.7 billion since its launch.

Is Online Auction for You?

While the uptake of online auctions cannot be denied, some sellers may still be wondering whether auction is for them. Here are five key reasons why auction can be hugely beneficial:

Reason One: Mass Exposure to A Wider Pool of Potential Buyers

A great deal of focus (and budget) is generally placed on the marketing of an online auction property. This widespread marketing approach reaches a larger pool?of potential buyers through methods such as online advertisements, social media, billboards and road signs, and newspaper notices. When an auction is conducted online this buyer pool becomes even greater as buyers can bid from anywhere in the world.?

Reason Two: Buyers Are Pre-Qualified

To participate in an online auction, potential buyers must be vetted and are required to pay a registration fee. Taking this one step further, the winning bidder is then required to pay a deposit amount on the same day that the online auction is concluded. This is then followed by a submission of a guarantee for the remaining amount.

Reason Three: No Negotiating

When people bid at auction, they commit to buying the property at the price they are offering for it, leaving less room for haggling over price once the winning bid is called. Any winning bids that are lower than the Reserve Price will be subject to the seller's confirmation.

Reason Four: Possibility of a Higher-Than-Expected Price

Once an auction begins, there is a high chance that multiple competitive bids will be placed. Further good news for the seller is that the competitive atmosphere of auctions means that bidders are often willing to spend more than they would in a negotiated sale if the property is in high demand.

Reason Five: Quicker Transaction Compared to Traditional Sales

There is a clear timeline for online auctions, including the marketing process and the deadline for the conclusion of transactions.??This removes the risk of a property sitting on the market for months at a time without the guarantee that it will still sell at fair market value.?

A New Era Dawns for Online Auctions?

Now, it’s even easier to participate in auctions with the Galetti Auction App, available on?Google Play, the?Apple App Store?, and online.

It allows you to stay informed about our upcoming auctions; view properties that interest you; get notifications when you’ve been outbid so that you can stay in the running and most importantly –??bid from anywhere in the world.

Download it now and never miss a second of crucial information on all our upcoming auctions.

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