Six facts you didn't know about auctions

1.?You don’t have to be a cash buyer

Finance through various institutions is available for prospective purchasers, in the same way that a home loan is granted. When bidding, a buyer should have all their finance in place and be able to pay deposits, commissions and balance guarantees.

2. Private tender sales are on the rise

Broll Auctions and Sales is seeing many clients in the private and public sector starting to understand the benefits of selling by private tender. This is usually done on unique or high-end properties, the likes of which may only come up once in a lifetime. The beauty of tenders is that buyers don’t know what is being bid and so they base their offers on value and what they can afford. All offers are considered and the seller decides which party aligns best with their objectives, for instance if the highest bid comes with suspensive conditions, the seller may decide to accept the next highest bid if it’s unconditional. Another bonus for tenders is you only need one party to bid as opposed to auctions where there should be a minimum of two to compete and push up the price.

3. Auction properties can be viewed

Many people mistakenly believe that auction properties have to be purchased sight unseen. This is not the case, and viewings can be arranged - and are in fact, encouraged by Broll Auctions and Sales’ brokers before bidding on a property.

4. The auction day is not the only opportunity to make an offer

The auction day itself, is just one component of the sales strategy within the entire auction process. Offers will often also be considered before or after the auction which allows brokers to manage the price and optimise the sale for the client pre, during and post auction.

5. Auctioneering is one of the world’s oldest professions

Auctions have been around since at least 500 BC, when Greek historian Herodotus documented auctions in Babylon. According to Wikipedia, the word "auction" is derived from the participle of the Latin word augeō, auctus, meaning “I increase”.

6. Auctioneering has won a Nobel Prize

In 1996, Professor of Economics, William Vickrey, was awarded the Nobel Prize in Economics for his contributions to the theory of incentives under conditions where one party has more information than the other. The selection committee cited his novel approach to auctioneering (known as a ‘Vickrey auction’), which, through sealed bidding, the auctioned item is awarded to the highest bidder but at the price submitted by the second highest bidder. This method, said Vickrey, benefits both buyer and seller by guaranteeing bids that reflect the fair value of the item.