16 Jan 2013
One of the important lessons that those going the auction route to sell their properties do not always understand is that failing to reach the reserved price at the initial auction does not mean that the end of the road has been reached.
Jovanovski says quite often a seller will persuade the auctioneer to fix a price above what the market is likely to accept.
"However, when, as so often happens, the bids come in too low for the seller’s liking and no sale is achieved, we still have other options open to us," she explains.
These are firstly to invite post auction offers, which can very definitely be worth considering, particularly if the buyers have had time to reconsider their position and have begun to realise that there is considerable interest in the property from other investors.
Some potential buyers deliberately hold back at auctions in the expectation of getting a better post auction price.
Secondly, the seller has the option of putting the home up for a second auction, which in this case will be a multiple auction held by Rawson Auctions towards the end of this month.
“This tactic has borne fruit in the past for Rawson Auctions, the reason probably being that people who attend multiple auctions tend to be shrewd investors with ample resources and they are usually intent on increasing their portfolios.”
It will feature five properties, several of which have previously been auctioned but did not achieve the reserve price.
Here is what will be on offer:
This apartment is tenanted with a rental of R4 500 per month and the reserve price has been set at R800 000.
2. A two bedroom apartment with a balcony and a garage at Egham Hof complex in Wynberg. The reserve price will be R400 000.
3. A two storey 314 square metre apartment and office building on the corners of Fourie and Pivert Streets in Bellville South.
This building, along with a small spaza shop, generates a rental income of R20 000 per month and the reserve price will be set at R1.5 million.
4. A classic Cape cottage style home with two ground floor en suite bedrooms and two attic bedrooms in McGregor with a reserve price of R1 million.
5. Unit 360 in the Grand Central - one bedroom apartment in Main Road, Wynberg. It currently commands a rental of R3 300 per month and the reserve price has been set at R400 000.
6. Unit 227 in the Grand Central - two bedroom apartment in Main Road, Wynberg.
This unit commands a rental of R4 500 per month and the reserve price has been set at R700 000.
Jovanovski says these properties are likely to offer exceptionally good buys.
“With the FNB Property Barometer now showing real growth, i.e. at ± 1.5% ahead of the inflation rate and with the likelihood that these prices will continue to rise, now is the right time to invest in real estate – as values are definitely moving upwards.”
For buyers looking to acquire commercial property, the Eastgate Office Park with restaurant in Gauteng will be auctioned by Aucor on 12 February at the Hyatt Regency Hotel in Rosebank, Johannesburg.
The property, 18 Southway Road in Kelvin known as Georgian Place Office Park, consists of 10 individual Georgian styled, facebrick offices.
Each building features its own kitchen and ablutions, air-conditioning throughout and designated parking bays.
The restaurant and office buildings will be sold separately, and/or as one complete property (the property has been sectionalised and will be sold as a whole or as individual units).
Situated close to the N3 and M1 highways, the property is easily accessible and a popular location for many businesses.
John Hislop of Aucor says the majority of the business park is tenanted, with a wide diversity of long-term tenants.
“It's not often that an office park with so much upside potential such as this is offered on auction and we have already received widespread interest in all of the buildings.”
The office buildings vary in size from a GLA of 298 square metres to 2 251 square metres each, with between one and five tenants.
There is a mixture of covered and uncovered parking with four bays per 100 square metres of GLA of the business park.
The restaurant, which generates a good monthly rental income, features a large indoor seating area, an outdoor garden seating area, a bar and kitchen, as well as 69 parking bays for patrons.
A guard house is located at the entrance offering added security to both patrons and staff, and as a result is a popular destination for the local community.
The 34.5ha mixed-use farm comprises a variety of noble grape varieties, pomegranates, apricots, Lucerne – all with either overhead or drip irrigation accessed from the nearby dam via electric motor and pump from their listed 10.6 ha access to the nearby Zandrift Scheme.
Accommodation consists of a fully restored 312 square metre homestead with five bedrooms, two bathrooms, farm-style kitchen, dining room, living room/lounge, a covered braai area and an office.
The property also contains six worker’s cottages a storeroom and a dairy which competes this fully functioning enterprise.
It will be sold with a reserve price and a right exists to bid through or on behalf of the owner or auctioneer, unless otherwise indicated.
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