Understanding auction talk: Patrick Bright

It is important for buyers to understand the real estate lingo that auctioneers use if they were to bid confidently at auction, according to EPS Property Search director Patrick Bright.

“Life many professionals, real estate has its own language and terminology that is often intimidating and confusing to outsiders.

“At an auction, the auctioneer wants to run the bidding up as fast as possible, taking big rises and using their bags of tricks, jargon and one-liners to maintain the bidding momentum,” says Bright.

Bright says if you don’t understand the environment or the language being used, it can be quite intimidating.

Bright has decoded the lingo for you below.

I’ll only take rises of $50,000 or more means the bidding is a long way short of the reserve price.

First call! Second call! If the property is not yet on the market, Bright says the auctioneer is trying to provoke fear in buyers that they’ll miss out if they don’t bid now and if the reserve has been met, you will miss out if you don’t bid now.

I’ll refer the bid means the bidding has stalled below the reserve and the auctioneer needs to talk to the selling agent to apply pressure to the vendor to lower their reserve price, in hope of making a sale under the hammer.

I am selling or we’re playing for keeps means the property is on the market and will go to the highest bidder.

I’m making a vendor bid of means the auction has either stalled a long way before reserve or no one has made an opening bid and the auctioneer makes a bid on before of the vendor.

I’m confident it will be sold under the hammer means the auctioneer has been advised by the selling agent that the property has a really lower reserve or the selling agent has received decent pre-auction offers from buyers who are at the auction.

Last opportunity means the property is about to be passed in if the reserve has not been met or if the reserve has been met, the property is about to be sold.

I’m happy to take rises of $500 means the bidding is close to the reserve or the property is about to be sold and the auctioneer is trying to get a bit more out of the bidders.

There’s real value here today buyers translates to the auctioneer trying to encourage bids when none are forthcoming.

We think it’s worth more means the selling agent has over-quoted to the vendor to get the listing, or the bidding is a long from the reserve, or a combination of both.

We’re selling today is typically an attempt to get you to bid when the reserve hasn’t been met, according to Bright.

Bright says if you hear the we’re selling today phrase, always ask if the reserve has been met, as some auctioneers use the term once the reserve has been met but most will beforehand.

“Your chance of bidding against a dummy bidder is high prior to the reserve being met and the property being called on the market – in 99% of situations, you’re better off not bidding until the reserve has been met.

“If you are buying at auction and you don’t know much about the process or haven’t at the very least attended a dozen auctions to see what goes on then you should certainly engage a professional such as an experienced buyer’s agent or ex-auctioneer to represent,” says Bright.

Nicola Trotman

Nicola Trotman

With a penchant for the written word, Nicola has built a career doing just this – now Creative Director at thriving Melbourne-based PR agency, Greenpoint Media.

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