Auction Advantage: Sell Your Home in 45 Days or Less - Jonathan Broekman and Darryl Shaff

In this episode of Living & Investing with Jonathan Broekman, we shine a spotlight on a powerful - yet often misunderstood - method of selling property: Auctions.

I sat down with Darryl Shaff, CEO of SOA Auctioneers and Homes of Distinction's auction partner, to unpack how property auctions work, why they're gaining traction and whether this route could work for you.

Why Auctions Are Gaining Popularity

Jonathan Broekman: Darryl, let's start at the beginning. Why are more people turning to auctions right now?
Darryl Shaff: The auction sector is one of the fastest-growing areas in South Africa's property industry. The biggest drawcard? Speed and certainty. Our auction cycle typically runs over just three weeks - and once sold, the deal is cash-based. That means no bond approvals, no delays, no fall-throughs. Sellers enjoy faster transfers and far fewer headaches.

What's Different About Commission & Costs?

Jonathan: How do auction commission structures differ from traditional sales?
Darryl: Here's where sellers really win: the commission is paid by the purchaser, not the seller. It's typically around 10% plus VAT. The buyer also covers compliance-related expenses like electrical, gas and fence certificates. This means the seller's costs are significantly reduced.

When Should You Consider Auctioning Your Property?

Jonathan: When should we, as estate agents, call you in?
Darryl: The best time is when a sole mandate is coming to an end. That's a great opportunity to hand the property over for auction. We're part of the Homes of Distinction offering, which gives your sellers access to a route that few other agencies can offer.

Residential vs Commercial: What's Selling?

Jonathan: What type of properties do you focus on?
Darryl: My primary focus is residential property, though I handle industrial and commercial sales too. Commercial has dipped post-COVID, so most stock right now is residential - and the majority of it comes from estate agents.

Who Buys at Auction?

Jonathan: Are auction buyers mostly investors or do end-users get involved too?
Darryl: It depends on the property. Lower-priced homes in working-class areas often attract investors looking to rent or multi-let. In the R1.5 million+ bracket, we see more end-users - people buying their forever homes.

Addressing the 'Distress Sale' Stigma

Jonathan: Let's talk about the elephant in the room - many sellers worry that auction means selling under duress.
Darryl: That's the most common misconception. Sellers often start with, "I'm not desperate. I'm not selling my home cheap." And I get it - but I explain that auctions are about qualified buyers, fast timelines and zero seller costs. Once we show sellers how the process protects their value, the stigma quickly fades.

How Auction Reduces Buyer Procrastination

Jonathan: Buyers are often slow to make decisions. Does auctioning change that?
Darryl: Absolutely. An auction date creates a sense of urgency. Buyers can't procrastinate - they have to act. And unlike private treaty sales where negotiations can drag on, auctions push buyers to decide then and there. It cuts out indecision and time-wasting.

What Makes a Buyer or Seller 'Qualified'?

Jonathan: What defines a qualified buyer and seller in your world?
Darryl: A qualified buyer is someone who's bond-approved or has the cash ready. A qualified seller is someone with a real financial interest in selling - and they show it by covering the upfront marketing costs. This small investment means they're committed and open to reasonable offers.

Does Auctioning Affect the Sale Price?

Jonathan: Let's address valuation. Do auction properties sell for less?
Darryl: Not necessarily. We aim to land within 5-10% of fair market value, but keep in mind - sellers aren't paying commission or compliance costs. On a R2 million sale, that's a saving of around R160,000. When you factor that in, sellers often walk away with the same - if not more - in their pocket.

The Marketing Difference

Jonathan: Our traditional marketing works, but yours is clearly different. How so?
Darryl: It's all about budget and exposure. We spend around R40,000 on a campaign. That includes street pole ads, database blasts to over 80,000 contacts, aggressive social media and portals like Property24. Compare that to the average R5,000 - R7,000 spent in traditional marketing and you'll see why we pull in more leads, fast.

What Happens on Auction Day?

Jonathan: So the auction happens. Then what?
Darryl: We take a 10% deposit immediately, right there at the property. The buyer then has 30 days to settle the balance. If they default, they lose their deposit. This gives our sellers the assurance that the deal is rock solid.

What's the Success Rate?

Jonathan: How many auctions result in a successful sale?
Darryl: We sell around 70% on the day. Of the rest, about half sell during the negotiation window that follows. Our success rate is sitting at close to 85% overall. And the process from instruction to registration? Just three months. That's speed you can't beat in traditional sales.

Portals: You List on Property24 Too?

Jonathan: We also use Property24. How do your listings there differ?
Darryl: We list the actual auction price - not an inflated "negotiable" figure. That means our properties show up in more relevant buyer searches. It's all about removing the smoke and mirrors and helping buyers make informed decisions.
 

Three Reasons to Choose Auction

Jonathan: To wrap up - give me three reasons someone should sell via auction.
Darryl:

1. Certainty - You know your buyer is qualified.
2. Speed - You can sell and transfer in under 90 days.
3. Cost savings - No commission, no compliance fees and serious marketing exposure.

Final Thoughts

This episode gave us a fresh look at a dynamic, results-driven way to sell property. With Darryl and the SOA Auctioneers team working hand in hand with Homes of Distinction, sellers now have access to a fast, effective and fully supported route to market.

Whether you're facing a tight timeline, struggling to find a buyer or just want an edge in a competitive market, the auction route could be your answer.

Thanks again to Darryl for joining us - and as always, stay tuned to Living & Investing with Jonathan Broekman for more insights and strategies to help you make smarter property decisions.

Disclaimer: The content in this article is provided as general information on property auctions and alternative selling methods. While we aim to share helpful insights and practical guidance, outcomes can vary depending on individual circumstances, market conditions, and the property itself. The auction process may not be suitable for every seller, and we recommend discussing your options with a qualified property practitioner before making any decisions. Our intention is to inform and empower you to explore solutions that best suit your goals and timelines.

Choose Homes of Distinction to Sell your home

Listing your home with Homes of Distinction means partnering with an experienced team that understands the nuances of the real estate market. Our agents are experts in showcasing properties, ensuring that your home receives the attention it deserves. With our proven strategies, high-quality marketing and personalised service, we help you navigate the selling process with ease and efficiency. Trust Homes of Distinction to guide you through every step, from pricing and staging to final negotiations, ensuring a smooth and successful sale of your property. Let us turn your selling goals into reality.

Are you looking to buy or sell your property? Visit our website at https://www.homesofdistinction.co.za/newsletter/

Sign up for our newsletter: - https://www.homesofdistinction.co.za/agents/ or pop by our offices for a chat. Our friendly property practitioners are always available to assist in this regard.

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