Like insurance business, many Nigerians including government are yet to largely embrace the buy and sell of property through auction system, principally due to many factors, including the absence of market details and explanations on the system and lack of immediate accessibility of the auction managers.
But managers of 3A Auction House which has just entered in to the business, specializing in the efficient disposal of a range of residential and commercial properties, vehicles and other possessions on behalf of private individuals and corporate bodies, said it has come to transform the industry by making it simple and creating value for both sellers and buyers of properties.
Prior to this period, some Nigerians and institutions are probably unaware that they could sell even landed property through auctions. Another challenge has been easy availability and identification of credible auction companies for advice and to structure better deal hence many properties are fallow without disposal for cash.
Speaking at the unveiling of the 3A Auction House in Lagos, its CEO Abi Akingboye said the company with determination to deepen the business in Nigeria, similar to other developed countries said the 3A House “provides exciting buying opportunities and an unsurpassed property exit strategy that can help sellers move properties faster and at a greater profit”
Akingboye who has some properties on auction including private aircraft said auctions provide the fastest route to selling, where the whole processes from instruction to completion can take less than four to eight weeks. “We regularly work with private investors, government establishments, financial institutions and
public bodies for whom we generate sales” Akingboye said the company specializes in the expected sale of properties and other assets through its innovative auctions and online bidding platform.
The CEO further explained to the audience at the launching of the company that under auction system, a seller sets the terms and conditions of the sale, maintains control of the property throughout the auction and actively participates in the sale process. A seller should not worry selling cheap as auction creates competition among buyers – auction prices can exceed the price of a negotiated sale. With internet, auction exposes property to wider range of pre-qualified prospective buyers, he said.
He confidently said that the new company has expertise to ensure that buyers and sellers get best deals. “Already, we have a number of banks we work with to help them raise funds”, he said. The CEO further said that the inspection of property before bidding or auction enhances prospective buyers the chance to ask questions.
He further cautioned that each property is subject to a reserve price. “This is the seller’s minimum acceptable price at auction and below it which the auctioneer cannot sell. The reserve price known only to seller and the auctioneer is not disclosed”
At auction, a buyer is expected to identify himself/herself and pay a minimum of 10 percent of the value of property purchased.
Also speaking at the venue, the President of Chartered Institute of Auctioneers Nigeria Hassan Adeleke said auction is a multibillion Naira business. According to him, government could leverage auction to improve its liquidity with immediate sell of its abandoned properties.
