The increased popularity of auctions as a way of selling a home has been achieved, at least partially, by obscuring some of the facts relating to this method of home marketing.

"An auction can be appropriate when a home has commercial potential – for example if it is on a busy road – but it can be highly inappropriate in other instances," says Lanice Steward, managing director of Anne Porter Knight Frank (APKF).

Sellers considering going the auction route, said Steward, should appreciate two facts: these are that many auctions do not result in a sale; and second, in the public's mind, an auction is often seen as a desperate, "last gasp" move and most of the potential buyers attending the auction will be looking for a bargain.

This perception is enhanced by the fact that a number of these auctioned homes are repossessed properties or from a liquidated estate.

"The chances are, therefore, that you will not achieve your sale price and will either have to accept a very low figure or live with the stigma of having failed to find a buyer at a public sale. You will also in many cases have had to pay the full costs of all related advertising."

www.property24.co.za

24/07/2008