Posted on Oct 22, 2021
As we all know, consumer behaviour is changing in our country. Everything is moving online. And so are auctions!
An online auction is an online marketplace where people auction and bid on the assets that are being offered by the auction site. This happens on an internet-based platform. The auction times get determined beforehand and the duration is usually 24-48 hours.
Prospective buyers bid online from anywhere they have an internet connection. Buyers still bid against each other. The internet-based system handles the entire bidding process (instead of an auctioneer).
Bidding happens in real-time which allows for complete transparency. The seller can log in at any time to watch the auction. The highest bidder wins at the closing time.
Each online auction has its own specific rules and requirements. With Van’s Auctioneers, the process looks more or less as follows.
Should you decide to auction your property, the auction house will contact you. The process will be explained to you, and an auction proposal prepared. The costs will depend on the property in question and each auction is unique.
The seller must supply documentation relevant to the sale. Such as title deeds, descriptions, high-quality photos, etc.
The seller decides on a minimum price he/she will accept, and the auction date is set. The assets are usually not sold on the fall of the hammer, and acceptance of the highest bid is at the seller’s discretion.
The auction house will be in direct contact with potential bidders.
You will also receive a booklet containing information on the auction. This includes opening and closing dates and times; auction conditions; property details; and auctioneer contact information. Check out an example here.
When registering, the interested bidder must submit FICA documents. The registration fee and the deposit is payable with EFT. Deposit amounts differ depending on the property on auction. The registration fee is refundable if you are not the highest bidder, and credited against the deposit if you are the highest bidder.
Once bidding opens, bidders can start their bids. These are visible to all participants but they will only see registration numbers.
Should you not buy the property, you will receive the registration fee back into your account. If you win the bid, the auction consultant will be in direct contact to finalise all documentation.
If the seller accepts the offer, the property is sold and the normal process of transfer then follows.
Want to find out more and receive alerts for our upcoming online auctions? Fill in your details in the contact form below and we’ll get you started with Van’s Auctioneers!
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