Auctions

Canberra seems to have a lot of property auctions. Personally, I don’t like auctions. I think they are dodgy at the best of times. My experience noted in an earlier post is an indication of that. From what I’ve spotted in the newspaper it appears as though Hooker has more property auctions than any other real estate agent.

I’ve been to a few auctions in my time and the auctions vary from one industry to the next. The government occasionally auctions of its disused equipment. There may be some bargains to be had there. I’ve bought quite a few motor vehicles at auction. Some were lemons, but then I got some beauties too. I’ve been to diseased estate auctions and factory auctions following bankruptcies. They all have a different flavour, and attract different clientele, and the mood varies between each of them. Some are exciting to attend but others are so boring. The first rule of auction: fix your limit and be prepared to walk away empty handed.

In my experience, the biggest auctioneering cheats were at car auctions. I was at one many years ago and I badly wanted a particular car. I had in mind just how much I wanted to pay for it, and bidding was well below that mark. I was in the race. What I didn’t know was that the auctioneer no doubt had a friend in the crowd or someone who had passed a bribe prior to the sale which influenced how events unfolded during the bidding. The bidding was in relatively low dollars, so I began to push myself forward through the crowd. Just on the first call I spoke up with what I thought was a clear “yes” to indicate my interest. I was on the front row when the auctioneer called for bids a second time. I had my arm above my head and called out “yes” again. How could I not have been heard? On the third call I was waving my arm around madly and I yelled at the top of my voice, only to hear the auctioneer call the sale at the original price to the other guy. I confronted the auctioneer, who claimed he didn’t see or hear me. The auctioneer had no trouble spotting me later in the day when he sold me another that wasn’t a patch on the first. Second rule of auction: get noticed early, and the eyes of the auctioneer will return to you. On this occasion I think the auctioneer was corrupt. How can anyone not notice anyone dancing around and yelling in front of your face? I hope he was embarrassed by his action.

I have heard that some auctions, where few people attend; particularly where specialised equipment is being sold, that interested buyers get together prior to the sale. There is generally a viewing period prior to the auction. If the items for sale don’t attract much or any interest, and if you happen to know the people who are interested in the sale, and if you happen to mention how much each item might be worth to you, and after some discussion you can work out ahead of the auction just how badly each of you want particular items, you might be inclined, through an arrangement with those other bidders, to hold off in bidding for those items, and so let your friends have those items at a very low price. This favour only works when they reciprocate and let your minium bid be the winning bid for an item you are particularly interested in buying. The auctioneer may well see what’s happening, but what can they do? If they are selling the items on behalf of a company and there is no reserve you have got some bargains to take home. But sometimes the auctioneer has an interest in the property and may apply a reserve to stop this tactic.

I had a house that was auctioned in Tasmania. It didn’t sell at the auction. I stood and witnessed the auction. That was a scary experience. The auction was held inside the house, so we stood at the side and watched. There were about a dozen people, the auctioneer and assistant. I was almost shaking in anticipation, and can understand why the owners tend to wait in another room. It’s nerve-wracking. I was sure the house was going to sell by the way the auction was progressing. The auctioneer was going furiously, once the auction started. The bidding was reasonably fast to and fro between the different bidders. And then it was passed in. I was confused when the auctioneer told me there was only one bidder. The other bidders were plants by the auctioneer who were pushing the bidding up. I couldn’t spot the fake bidders from the real ones. I had no idea this was happening, didn’t know it was going to happen. It was a beautiful con job that failed to pull off anything.