Buying a home
What happens at the end of an auction - The Auction Advantage Ep 5
17 August 2018
Nicole Jacobs, buyers advocate for Channel Nine's The Block, presents The Auction Advantage: tips to help you understand the auction process.
In the final episode of The Auction Advantage series, Nicole outlines what happens at the end of an auction.
What happens at the end of an auction
[Auctioneer]: Silent. Finished. No further advances of the price.
Only two million six hundred dollars.
[Vendor]: We’ll take your advice and we’ll pass it in, it’s not worth doing.
[Auctioneer]: My vendors have instructed me to pass the property in to Mr Frank Falentick.
[Nicole Jacobs]: If the property does pass in, you want to have the first right to negotiate.
[Auctioneer]: I will be negotiating exclusively with him at the vendor’s reserve price.
[Nicole Jacobs]: Now that’s a courtesy, as far as being able to negotiate.
But if you’re there, and you’ve been bidding, at least the agent knows that your intention was there to buy the property.
So make sure you don’t walk off.
Make sure you know that if it is going to be passed in, that you want to be involved in that negotiation process.
A good example is Ronny and Georgia’s property.
They didn’t feel they had enough action in the room.
[Auctioneer]: As you can appreciate we’ve been very disappointed with what was offered here today.
[Nicole Jacobs]: We have looked like we’d left our run a bit too late, but it was very strategic.
But the key point here is that we made sure we were still involved in that negotiation.
When you go in and you hear the vendor’s reserve, you might be very excited because it’s way below where you came with the money to buy at auction, but it may also be way above where you’re prepared to go.
That’s where the information you gathered prior to the auction, knowing exactly where it should fall in the marketplace, and then that emotion attached to it, is really critical.
Because you can use that with the sales agent and if you know what you’re talking about, you’re less likely to be bamboozled, and to be paying a lot more than you need to pay.
Don’t walk off
You may not be the winning bidder, but don’t walk off too soon. If the property passes in, you could still be in with a chance of negotiating for the property.
Use your research to negotiate
Use your research into recent sales in the suburb with your knowledge of where the property should sit in the market to negotiate with the sales agent. This shows that you know what you’re talking about.
Good luck at auction!
Read more on Learn About:
- Negotiating 101 for Home Buying
- My experience buying a house at auction
- What to look for in a family home
Nicole Jacobs is founder and director of Nicole Jacobs Property and a licensed REIV estate agent. Nicole is passionate about helping people find their dream property and regularly appears on Channel Nine’s The Block as a buyers advocate. With nearly 20 years business experience, Nicole is a big supporter of women in real estate and empowering them to achieve their goals.
Information is intended to be of a general nature only and any advice has been prepared without taking into account any person's particular objectives, financial situation or needs. You should make your own enquiries, consider whether advice is appropriate for you and read the relevant Product Disclosure Statement or Product Information Document before making any decisions about whether to acquire a product