Never Do This At An Auction – Confessions Of An Auctioneer

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The Property Academy Podcast 24 min 2 speakers 8 chapters transcribed 9 hours ago
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How does a property auction work, and what happens before auction day?

Stephen Knight 0:08
Hello, welcome along to the Property Academy Podcast by Opus Partners. I'm your host, Steve McKnight. And I'm Andrew Nicole. And this is the show that helps Kiwis go from zero to five investment property so you could be financially free and stick around for the next 15 minutes because you're gonna learn about the mistakes bidders make at auction from the man who's run 8,000 of them, what an auctioneer is actually allowed to do and what they are not, and do the usual auction tricks. Tips still work. And I think this really matters because most people walk into an auction room without really knowing the rules of the game. But remember, an auction is basically the only way of buying a house where you sign a contract to buy it with no conditions in public four minutes after putting up your hand and the hammer coming down.
Stephen Knight 0:54
So today we have caught someone who's called eight. thousand auctions and is now the CEO of Ray White. Welcome to the show, Daniel Colson. Oh thanks so much for
Daniel Coulson 1:05
having me uh gents and avid listener of the show so I appreciate the opportunity to be on them indeed.
Andrew Nicholl 1:10
Now Daniel, I just no lies I have to say it's just made that sound like quite a simple job. Just, you know, four minutes later someone buys a property, no conditions. Job done. Give me your thirty thousand dollar cheque. Is it that simple?
Daniel Coulson 1:23
I I wish it was that simple. It'd be great if it was that simple and I certainly think the buyers and the sellers would be pretty delighted if it was that simple. But there is a bit more to the process than than just the four minutes of the auction itself.
Andrew Nicholl 1:33
Can you just walk me through that, just out of curiosity? Because I I I mean I've been to a few auctions, obviously. I remember Ed buying his house at auction. I think I was more nervous about that one than than any other one that I'd been to.
Daniel Coulson 1:45
What what is the normal process? Well, uh obviously the auction itself is the culmination of three to four weeks normally of of a marketing campaign, of establishing uh the property's position in the market, understanding who the buyers are, the owner making a series of decisions along the way to to you know, to get to the day itself. The auction is like the tip of the iceberg, if you like, for all the work that's gone on beforehand.
Stephen Knight 2:06
Now, if we think about those 8,000 auctions, you must get very good at reading people, trying to figure out if there's a little bit more juice you can squeeze out of that orange. What do you know about people now that you didn't know when you started at your first auction?
Daniel Coulson 2:23
Well, I think it's an amazing display, an option, either an auction room or an auction at a at a home. It's an amazing display of of of human psychology sort of playing out in real time across all elements of sort of people's um reaction and and response to various things.

How do auctioneers read bidder psychology, and when is auction a good way to sell?

Daniel Coulson 2:38
You've got, you know, the competitive validation. So how much confidence people take from seeing somebody else do something, but equally on the other side, how much hesitation there can Be when somebody else doesn't do what you thought they were going to do. One of the things that you do notice, and I'm sure you, you too, will have seen this having been in auction rooms as well, is that people respond to unfamiliar, or let's face it, for many people, particularly who are buying their own home, when they're emotionally invested, they can be in somewhat of an uncomfortable environment. And seeing the way that people respond to that is quite fascinating. Fascinating from the you know, the fight, the flight, or the freeze sort of response that people have.
Daniel Coulson 3:18
And you see that play out in real time in an auction. So having that ability to to to sort of see how people are displaying that human behavior, how we respond to it as an auctioneer, and how we can help sort of give people a degree of comfort to to really guide them to what they're ultimately looking to achieve, which which is to buy a house. Daniel, you're based in Auckland, right? Yes, I am now.
Andrew Nicholl 3:39
If you if you were buying a house right now and or if you were selling your house n right now, would it be auctioned by default for both of those options?

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