Silver-tongued salesmen in sharp suits are prized in high finance. We associate them with big property deals and eye-watering pots of money.
That may be the stereotype of many realtors, but you won’t find them at In2Assets, a national company headquartered in Durban.
In August, the firm sold 17 properties in a single auction for Telkom, netting R617 million — a South African auction record. But you won’t find anyone resembling Leonardo DiCaprio in The Wolf of Wall Street at In2Assets. On the contrary, you’ll find a staff of nearly 30 people quietly beavering away on their next auction.
If they aren’t hunched over their computers researching reports, they’re out in the field inspecting properties. In2Assets champions a research-led, systematic approach to sales.
The stereotype about property deals is that they hinge on big talk. But the key ingredient to successful sales is research and reliable information.
Rainer Stenzhorn is one of six shareholders in the firm he helped start in 2012. Since then, the company has sold R9 billion worth of real estate. Hein Hattingh is the MD of In2Assets, and other shareholders include chairman Hennie Barnard, legal director Andile Khoza, national operations manager Rowena Moodley and Andrew Miller, one of the most recognisable auctioneers in South Africa.
Fast-paced property auctions can be dazzling, a bit like the clichés about high finance. But behind every event are months of planning and arduous legwork to uncover everything there is to know about a property.
“We don’t take a property to auction unless we have correctly researched it,” says Rainer. “We have to do proper due diligence and accurate valuations. That way, there are no comebacks or surprises.”
In2Assets is no longer seen as a KZN company — it sells huge portfolios nationally.
When bidders arrive at In2Assets auctions, they pay hefty deposits and are pre-qualified cash buyers. They have done their homework, and so have their competitors. Cash-flush and ready to buy, they participate in brisk bidding because the properties on auction are highly sought after.
Bidding rooms are packed because most properties for sale have never been exposed to the open market. During the recent Telkom auction, one property sold for R95 million.
For Telkom alone, In2Assets has sold 95 properties worth R946 million in four auctions over two years, with a clearance rate of 99%.
Hein Hattingh says consistency is the name of the game. “Our auctions are frequent and reliable, attracting buyers and sellers to a trusted brand.”
In2Assets sells a vast array of properties and, on average, hosts about 32 property auctions a year, attracting thousands of buyers. The lots are varied and include blocks of flats, shopping malls, farms, petrol stations, industrial land, warehouses and factories.
Rainer says every prospective buyer has digital access to well-researched, comprehensive data on each property well in advance of every sale. “It is thorough, with all disclaimers in place.”
Increasingly, property brokers use In2Assets to sell on behalf of clients because the auction process is open and transparent.
One broker described the auction as “bringing the deal to a conclusion because it is a face-to-face engagement.” Another said, “On the day everybody is under one roof, and there is no painful back-and-forth — the business gets done.”
Andrew Miller is a veteran auctioneer with 43 years on the rostrum. He is meticulous about preparing for auction day.
“As an auctioneer, you have to understand the properties you are selling. I’ve been in the saddle for a few years, and experience has taught me to know the nuances of the business and how to handle the crowds when the big money flows. There is a lot of energy and sometimes ego in an auction, but at the end of the day, this is about trading.
“People want the best deal — both buyers and sellers. Generally, sellers overstate the value and buyers understate it, so you have to bring them together. Where they meet is the actual market value. Nothing determines the value of something better than the voice of the market.”
Auctions are public business, where the spotlight shines brightly on the auctioneer. Andrew says unprepared, smooth-talking auctioneers who don’t know the details of what they are selling do the business a grave disservice.
“If you understand your seller and what they are selling, you can go to war — but failing to prepare means preparing to fail. You can trade effectively if you know the product. An auction can be intimidating. Sometimes it feels like a reality show with many moving parts. There might be last-minute bids and an element of theatre to it, but at the end of the day, this is about trade, and real traders are serious. They don’t tolerate nonsense.”
