Looking to buy a property at auction? Expert shares tips to get you started…

702 and CapeTalk’s Africa Melane speaks with Gary Phelps, property practitioner at the ICON Property Group.

Listen below:

Buying and selling property at auction is becoming more common.

Three Gupta-owned mansions are in the media after going on auction, only one sold for R3.3 million.

RELATED:

• Gupta mansions worth R37 million go on auction
• [WATCH] Gupta Saxonwold auction: One property sold for R3.3 million

Property auctions often include distressed sales, where a property goes to auction to recoup funds. Then there are desirable sales, where a very in-demand property goes up and many people want it. 

For buyers, Phelps shares the following tips if you’re looking to explore auctions:

• Make sure that you’ve viewed and inspected the property, beyond the mandatory disclosures
• Ensure you fully understand the holding cost, such as rates and taxes
• Read and understand the auction’s terms and conditions
• Make sure you’ve got the money

“We have seen cases over the years where people bid, they pay the deposit and they can’t raise the balance. You will lose the deposit, and it becomes a debacle.” 

– Gary Phelps, property practitioner

“Speak to the auctioneer to make sure that what you are reading is in fact what you understand.”

– Gary Phelps, property practitioner

Scroll up to the audio player to listen to the discussion