In a tough market where property values are difficult to determine and sales volumes are low, it’s challenging for a seller to know how to achieve the best price the market will pay.
Harcourts Platinum has been pioneering the Australasian non-distressed auction sales method, with excellent success. Unlike the conventional auction method normally used in South Africa, the Harcourts model uses different strategies for non-distressed sellers, and the results speak for themselves.
Steve Caradoc Davies, former Principal and now CEO of Harcourts International, recently sold his own property in Erinvale Golf Estate using this method. “Removing the price from the marketing and attracting buyers to the property for what it offers, resulted in over 20 viewings from real buyers and 3 offers in just 3 weeks”, says Caradoc-Davies.
The property was sold at auction only 3 weeks after listing for an excellent price using the transparent auction platform. “The Harcourts auction process is transparent. As a seller I received real feedback from buyers and could make an informed decision as to the real market value, based on that feedback”, Caradoc-Davies says.
Jan Myburgh, co-owner of Harcourts Platinum and manager of the business, believes that the non-distressed Auction method is ideal for the current market. “It’s easy to overprice a property in this market and this attracts the wrong buyers. The Seller receives little or no feedback so they’re not able to make informed decisions as to what needs to be done to sell. Our auction process removes this risk, shortens the selling time, and ensures a property doesn’t become stale and end up selling for less than it should”.
Michael Pashley, one of the leading agents at Harcourts Platinum, has used the non-distressed auction method with great success. “A property seller wants feet through the door and real feedback”, says Pashley. “When we remove the price from our marketing we don’t deter buyers from enquiring. They’re attracted to the property and not put off by a wrong price. This stirs up great interest and gets buyers to compete against each other. That’s how we get the buyers to make their best offer – when they’re competing for the property”.
Harcourts Platinum has also had great success with this method on properties that have been listed with a price for some time, with no result.
“We’ve moved many listings from the conventional priced method to our modern Auction method. With the non-distressed auction programme buyers now have a deadline by when they need to make a decision. This creates a sense of urgency which otherwise isn’t possible in the current market. It’s resulted in a third of our auction properties selling even prior to auction”, says Pashley.
Jan Myburgh is quick to point out the benefits of purchasing on the Harcourts Auction method for buyers. “The transparency of auction also gives buyers confidence when they can see that others also want the same property, and what they are willing to pay. With a recent success rate of 93% of auction mandates selling, the Harcourts Auction selling strategy has great benefits for buyers and sellers alike”, says Myburgh.
For more information on the non-distressed Harcourts Auction selling method contact Jan Myburgh on jan.myburgh@harcourts.co.za or 082 568 0790.