What is a Reserve Price?
The Reserve Price is the minimum price at which the seller agrees to sell their property. The reserve is not disclosed to buyers.
What is a Guide Price?
The purpose of a Guide Price is to give buyers a guideline as to the price range where offers can be made on the property and gives no indication of the valuation or anticipated selling price of the property. The Guide Price is normally within 10% lower or higher than the reserve price.
What is an Opening Bid?
The Opening Bid is the price at which bidding will start on the auction – bids below this will not be permitted.
If I really like the property, can I buy it before the auction?
Yes, our auction strategy has been designed to run in two phases to maximise the opportunities for buyers.
Phase 1 will be the pre-auction phase and runs for a period of four weeks, during which time committed and pre-qualified buyers will have an opportunity to make offers before the auction. Pre-auction offers may be subject to finance or other suspensive conditions. All pre-auction offers will be presented to the Seller for consideration. The value of all other pre-auction offers will be visible to all registered buyers on the PG Auctions website via the Offr platform.
Phase 2 is the auction phase, which will start four weeks after the catalogue has been released and run for six days. Once the auction phase starts, no further pre-offers will be entertained and bids can only be made on the platform by registered buyers for cash (not subject to finance).
I don’t really see myself as an auction buyer – can I buy the property privately from the seller after the auction?
PG Auctions signs an exclusive mandate with the seller before enrolling the property on our auction catalogue, so you cannot buy the property from the seller directly. We are committed to guiding and supporting any buyer through the process and will endeavour to assist you to negotiate buying the property at terms that are best suited to your needs.
Will Pam Golding run the auction themselves?
Yes! PG Auctions has developed an innovative online platform to maximise buyer engagement during both phase 1 and 2, allowing us to deal with every type of buyer while achieving the best possible price in a competitive and transparent environment. We will manage the process from start to finish.
Can I view the property?
Yes, there is plenty of time to do so in the 4 weeks leading up the auction. As per normal private treaty sales, all properties can be viewed by appointment via the Offr platform or, alternatively, on normal show days as advertised.
How does the online auction work?
After the first four weeks of the Pre-Offer phase, the listing will move to Phase 2 – which will be the online auction phase.
Buyers will register on the Offr platform to take part in the auction, and be required to upload proof of identify, proof of residence and pay a refundable registration fee of between R5,000 and R20,000, depending on the value of the property, as well as accept the Terms and Conditions of the auction, following which a formal ‘approval to bid’ will be advised via email and on the Offr platform.
Online bidding will be open for six days (called a ‘timed auction’), to ensure that auction buyers are able to place their bids in a calm and non-threatening environment. All bids will be transparent to other registered buyers, although the identity of the bidders will remain anonymous. If a buyer bids in the last 60 seconds just before the auction is scheduled to close, the lot will automatically be extended by an extra 60 seconds to avoid bidders sniping the property in the dying seconds of the auction.
The winning bidder will be required to sign the sale agreement, which will then be presented to the seller for consideration. The seller will have seven working days to consider this offer. If the seller accepts, the buyer’s registration fee will be allocated towards the deposit. If the seller does not accept the offer, the buyer’s registration fee will be refunded in full. The registration fee of all underbidders will automatically be refunded after auction.
If the Reserve Price is achieved, or the Seller accepts a lower bid, the buyer will have 72 hours to pay the 10% deposit (minus registration fee), and will have to secure the balance of the purchase price within 30 days.
Note: If the buyer does not pay the 10% deposit in time, their registration fee will be forfeited. If the purchase price is not secured in 30 days, the buyer will forfeit their 10% deposit.
I made a pre-auction offer but it was unsuccessful. Should I still register for the Auction and try again?
Yes, you should still register for the auction. The auction process over the 5 weeks, as well as on auction day, serves to provide the Seller with a realistic understanding as to what the property is worth, which may in fact change as the auction process progresses…or, indeed, you yourself may discover greater value in the property than what you originally thought.
Is there a Buyers Fee payable?
Unlike other property auctions, no, there is no Buyers Fee payable.
What happens if the reserve is not met on auction day?
If the reserve price is not met on auction day, we will engage with the seller and final bidder to try and close the gap between the 2. Should the seller wish to accept an offer below reserve they are free to do so
What happens if the winning bidder does not get finance?
During phase 1, the pre-offer phase, buyers will be allowed to purchase subject to finance. To allow the seller to consider higher offers while the buyer applies for finance, we include a 72-hour clause in the Offer to Purchase, which allows the original buyer to match or exceed other offers that may come in subsequently.
During phase 2, which is the auction phase, no suspensive conditions will be allowed, so it is important to note that all final bids are fully binding on the purchaser at the ’fall of the hammer’. Offers can therefore not be subject to finance (or the sale of another property), so buyers need to be cash buyers, or have pre-approved finance in place prior to bidding. Buyers can arrange finance at their own risk but will lose their 10% deposit if they are not able to secure the purchase price within 30 days of auction. PG Auctions can assist all interested buyers in obtaining pre-approved finance where needed.
What happens after auction?
Once the auction agreement has been signed by all parties, the winning bidder will have 72 hours to pay the 10% deposit, after which the transferring attorney will receive the instruction to start the transfer. The balance of the purchase price will have to be secured within 30 days. From there onwards the transfer will proceed as per any normal private treaty transfer.
Can I use my own attorney to attend to the transfer?
The seller has the right to appoint the transferring attorney, but can agree to the buyer’s attorney if they do not have any specific preference. It will be a prerequisite that the transferring attorney appointed is an established and respected firm with a dedicated and professional conveyancing department.
What happens if I don’t want the property after auction – can I cancel the sale?
During listing, PG Auctions will upload all legal documentation, including the property disclosure form and all other relevant documentation to support the buyer in their due diligence process. Buyers are also free to view the property before the auction. On the auction the property is sold voetstoots so buyers are not able to cancel the sale after auction day. It is important for buyers to fully familiarise themselves with the property they wish to purchase and our auctions team will be on standby to provide any additional information required.
What happens if the property does not sell on Auction Day?
If the property does not sell before or on Auction Day, you may submit an offer after auction – however, in such circumstances, you risk being involved in a multiple offer situation, as there may be several other buyers who have been holding out until after the auction. If you are keen on the property, it is therefore advisable to make an offer prior to auction or bid on the auction to a specific amount, as buying at auction is the most transparent and certain way to purchase the property.
Do you still have questions?
Please email firstname.lastname@example.org, and we would be more than happy to assist you.