Your guide to purchasing a home on auction
Rule #1: Do your homework!
Buying a home. Pexels: Rdne Stock Project 8293778
Africa Melane interviews Tanya Jovanovski, Franchisee of Rawson Auctions Western Cape.
Listen below.
Auctions are gaining popularity in South Africa.
Many choose them for their speed and the protection of the seller's reserved price provided by the mandate, which also ensures no advertising costs or auction fees for sellers.
Jovanovski highlights the immediacy, transparency, and excitement of live auctions, which are difficult to match.
Additionally, there's the potential for both buyers and sellers to secure a property at a fair market value.
For those considering entering the auction market, Jovanovski advises:
- Conduct thorough research
- If you find a property online that interests you, visit the house in person and request a defect list
- Avoid becoming emotionally involved during the bidding process and be clear about your bidding limit
- Be aware that a 10% commission is required in addition to the highest bid amount
Despite homes being sold "as is," she emphasises that owners are legally obligated to disclose any defects.
For individuals planning to take out a bond, the necessary documents include:
- A three-month bank statement
- Proof of three months' salary
Based on this information, you will undergo pre-qualification to ensure you can afford the bond.
Auction terms and conditions entail registering with Rawson Auctions Western Cape and providing Fica documents.
"Up to 95% of our properties are sold at a market-related price."
Tanya Jovanovski, Franchisee – Rawson Auctions Western Cape
"Do your homework."
Tanya Jovanovski, Franchisee – Rawson Auctions Western Cape
Scroll up to listen to the full interview.