FREE IS NEVER FREE!
This past weekend was no different to any other weekend. I spotted a great subdivision project and thought I would attend the Auction. It is then that I am reminded yet again, how silly some buyers can be!
There were only two registered bidders, one bidder in person, the other bidder was on the phone utilising the “FREE” services of the Selling Agents assistant. This type of practice never ceases to amaze me. I’m just not sure why you would seek the assistance of the Selling Agents assistant. They are working for the seller; they have signed a form that clearly states they are working in the best interest of the Seller. Does anyone see the conflict of interest here? I digress, let’s move on and see how this plays out!
The bidding starts low and slowly makes its way up, with the help of a couple of vendor bids thrown in to keep the heat going.
In typical form, when the bidding stalls (at what in my opinion, was already top value for the property) the agent heads inside to do the usual Seller conditioning.
This is all very usual, what happens next is the interesting part!
When the agent returns, they negotiate with the current highest bidder (via the Selling Agents assistant) and managed to convince the poor phone bidder to raise the offer by $20,000 to put the property on the market.
Upon hearing the price increase, the only other registered bidder walks away along with all the other rubber neckers that can see the writing on the wall. The Auctioneer starts calling for another $10,000 raised bid and low and behold the phone bidder, that cannot see the fact that the only other bidder has disappeared along with the crowd, is again convinced by the Selling Agents assistant to up the anti and raise another $7,000. Due to the fact that there is only one bidder left and the crowd has all but disappeared, the Auctioneer quickly wraps it up and the property is sold.
Now, I don’t know what was discussed on that phone call, but my prediction is that the phone bidder did not have a clue that the only other competition they were up against had walked.
All I can say is that had he paid for the services of a Buyer’s Agent, instead of the FREE service provided by the Sellers Agent, he would have saved himself a lot of money!
Essential Property Advice would have charged this buyer $1,000 to represent them at this auction. There’s an immediate saving of at least $6,000 on the last bid. Not to mention the $20,000 they were advised to raise the offer by to bring it to market!
Let EPA represent YOUR best interests during your next property purchase.
Asking the selling agent to have a representative for you at an Auction IS NEVER FREE!