By Kingsley Adegboye
CHIEF Executive Officer, 3A Auction House, Mr. Abimbola Akingboye, has noted that auction sale will afford a seller of goods or products more bargaining power than buying from a seller who is selling to a single person.
Akingboye who made the observation in a chat with Vanguard Homes & Property, was comparing modus operandi of his firm to that of estate surveyors and valuers that engage in property sales.
He said,“What estate surveyors and valuers do is that they get property and look for basically those who want to buy them. For them, they sell a property to a person at a time. But what we do at Auction House is that we have a particular day that we can have 30, 40, 50, 80 and 100 property that we want to auction and people gather from all walks of life to bid for them.
“The benefit of this that unlike when you are selling a single property to a person, you don’t have bargaining power. For instance, a buyer might be offering N20 million for a property being sold by an individual, the same property under auction, will attract more value as 50 or even 100 people could be offering N40 million for the same property. This means that property have more prospects of better deals through auction than through an individual seller.”
3A Auction House is the leading auction house in Nigeria, specialising in the efficient disposal of a range of residential and commercial properties, vehicles and other possessions on behalf of both private individuals and corporate bodies.
Research on the property
Akingboye who disclosed that the Auction House kicked off in 2016, and has done well within the period, said two processes involved in either buying or selling property under the Auction House.
He noted, “For people buying, we expect them to show up at our live auction day. They need to present their passport photographs for purposes of identification. But before coming to bid on the auction day, they would have gone to our web site to search and identify the property they want to bid for.
“So, on the auction day, what we do is to register those who want to bid against the property they are bidding for by taking their particulars. We always advise prospective bidders that before they show up on the day of auction, that they must visit the property they are interested in with their lawyers or builders for their advice before coming to bid for them.
“This is because the property you are buying has no guarantee or warranty. So, to be sure of what you are buying, we always advise that people should visit the property at their various locations with their lawyers or builders to be sure of what they are bidding for. We ask them to do their own research on the property they are bidding for before the actual auction day. On the auction day, we identify them to be sure they are the right people to deal with, and not the dubious ones that will disappear after bidding.
“For those selling, they invite us to see the property they are selling, we conduct our findings concerning the property, and if we are convinced that the property are free from all forms of trouble, we enlist them for auction. Before accepting the property, we would have done our own valuation of it to know the worth of each of the property even though property are sold below their values at auction.
“We always make sure the prices are right, and when we agree on prices, we make sure that we set a minimum benchmark for the property during auction. So, during auction, once we hit the figure as our benchmark, we stop and we don’t allow any figure above this benchmark.
“With this, sellers are rest assured that their property will not be sold below their worth. For instance, if your property is worth N500 million and we both agreed that it should be sold at N400 million, it means the person buying is buying below market price and the person selling is not selling below its worth. In this case, both parties are happy after the deal.
“So, we always ensure that both parties are excited after every deal.”