Disposing of assets via the auction method is a practice that has stood the test of time. However, Tirhani Auctioneers understand that people are often deterred from participating in auctions due to the myths and taboos surrounding the industry. That is why we have put together this easy to understand guide. No matter your age, income, profession or qualifications, we believe that auctions are for all South Africans. Knowledge is convenience; the more you know about auctions, the more you will enjoy the process.
What Can I Buy?
You can buy all kinds of items at an auction. It depends on the stock available to the auctioneers. This includes; coins, antiques, cars, property and heavy machinery. Tirhani Auctioneers specialise in vehicle, earthmoving equipment, residential and commercial real estate auctions.
You need to register before you take part in an auction. Registration forms are available for download on the Tirhani Auctioneers website (www.tirhani.co.za). You need to submit FICA documents along with your completed form. You also need to submit proof of payment of your registration fee. When you attend an auction, you will be allocated a bidder number. This is so the auctioneer can officially identify you.
When an auction starts, an auctioneer arranges all the items on offer into lots. The auction starts when a starting bid for a lot has been determined by the bidders (i.e. buyers) with guidance from the auctioneer. As one of the bidders, you can choose when to increase your offer to a higher amount than any of the other bidders. In a way, it is similar to a competition. In the end, the bidder that offers to pay the highest price, that no other bidders are willing to surpass, will be declared the ‘winner’ by the auctioneer. The decision is final and the winning bidder must pay the amount they offered in order to claim their purchase.
Pick Your Type
Now that you know the basic auction process, let’s explore the different types of auction methods that Tirhani Auctioneers specialise in.
LIVE ONSITE AUCTION – this is when Tirhani Auctioneers hosts an auction in real time. If you attend as a bidder, you are required to physically be present at the predetermined location of the auction venue. This is by far the most common type of auction method that you may already be familiar with. Tirhani Auctioneers is able to host auctions anywhere in South Africa, making it possible for you to attend an auction no matter what Province you live in.
CLOSED INVITATION ONLY AUCTION – This is very similar to a regular live onsite auction. The most notable difference is that you can only attend and take part in the bidding if you are invited by the auctioneers.
CATALOGUE AUCTION – If you choose this kind of auction, you will not be required to physically attend the bidding process live. Your bid will be placed on the items listed on a catalogue ahead of the auction. Bidding will not take place in real time.
LIVE BALLROOM AUCTION – This is when you can bid for one or more properties, but instead of going to the actual location of the property on sale, Tirhani Auctioneers hosts the bidding process inside a meeting room.
LIVE AND ONLINE MULTI PARCEL AUCTION – This is the method used to sell a large property, like a farm or a building complex. Instead of selling the entire property to one buyer, the whole property is divided into a variety of tracts, parcels and lots. This gives you, the buyer, the opportunity to buy as many individual/multiple units in any combination you choose.
ONLINE TIMED AUCTION - A timed online only auction is automated and takes place solely online. The bidding for each lot is opened at a predetermined time and price set by the auctioneer and stays open over a period of hours or days. If you are the kind of buyer who would prefer to bid from the comfort of their own home, then this method is for you. All you need is a reliable internet connection.
CLOSED TENDER AUCTION – If you have ever attended this type of an auction, you may have heard it being referred to as a ‘silent’ auction. This is simply because closed tender auctions are when the bidder’s amounts are kept secret and closed to other bidders. Only the seller and the auctioneers know the amounts and who has the highest bid.
Are you ready?
Now that you have been introduced to the basics of auctions, Tirhani Auctioneers hope to see you at one of our future events. Is there any kind of auction method that you favour over the others? Do you have any other observations that you would like to share about auctions? Please let us know below in the comments section and share this article with anyone else you think may be interested. Remember that the more people that know about auctions the more accessible this tried and tested sales method will become.
Keep watching this space because we will be releasing many more handy auction guides!
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