What do auctioneers do?
Any publicly advertised auction for a property must be conducted by a licensed real estate agent with auctioneer accreditation through NSW Fair Trading. All property types can be sold by auction, and it is a popular method of sale in some markets.
The property is advertised with the date and time of the auction displayed. Potential buyers (bidders) compete against each other, by making increasingly high offers until only one buyer remains. The role of the auctioneer is to use their skill to maximise the price obtained for the seller.
Sellers usually choose to auction their property because it has unique features or because the competitive nature of the auction conditions is conducive to buyers bidding higher than they may have originally if they were the only buyer. At times, sellers may opt for auction as it may provide a known date the property will be sold.
Auctioneers must conduct property auctions according to the state’s property laws. On the day of the auction, they implement auction day procedures, including displaying the legally required auction notices, overseeing the registration of bidders and other administrative aspects, and ensuring the seller sets the reserve price (the price that the seller has specified as being the minimum they will accept) in writing. During the auction, the auctioneer must closely monitor price movements and deal with any issues that arise during the auction, such as disputed bids or conflicts. Once the auction is successfully completed, the auctioneer oversees the signing of the Contract for Sale and Purchase of Land.
If the home doesn’t reach the seller’s reserve price, the property is ’passed in’ and the current highest bidder then has the right of first refusal to any further offers.
The role of an auctioneer can be an exciting and high pressure one. It’s their job to facilitate open negotiation and aid the momentum of the auction. The amount the property is sold for is the outcome of the auction, and that may all depend on the auctioneer’s tactics during those few minutes of the auction. Of course efforts and dealings by the sales agent during the auction campaign also weigh heavily on the auction day outcome.
RETs conducts auctioneer accreditation as part of the Real Estate Licence course - click here to see more