Agents Turn To Auctions

The information in this article is courtesy of Fin24 (Agents to Auction Off Houses – 22 June 2009)

The slow property market has urged South African estate agents to turn to auctions as a means of selling property. The popularity of auctions has increased over the past year, mainly due to the fact that it provides a quick and efficient way to get rid of property.

Experts are now implying that the combination of estate agents’ skills and the conventional success of auctions could deliver satisfying results. Re/Max Southern Africa and Yellow Hammer has already announced a strategic partnership to supply auctioneering services to the property market.

Lew Greffen Sotherby’s International Realty has also taken initiative by launching its own venture – Saville Row Auctions. This company will focus mainly on industrial and commercial property, with some residential and recreational property also going under the hammer.

Andrew Smith, director of Yellow Hammer, thinks that all agents will turn to auctions at some point. He added that concept differs from traditional methods of auctioning in that it combines estate agents' out-of-hand methods of selling with auctioning. This way estate agents can use their expertise, skills and contacts to increase the exposure of a property while the auction is used to efficiently concluded the transaction.

Smith added that auctions is both beneficial for the seller and the agents as it is the most active market and estate agents can earn an income in less time and from a broader spectrum.

According to Smith there is no competition between the estate agents and Yellow Hammer as they work independently from the agents.