What happens at the end of an auction - The Auction Advantage Ep 5

[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.