FAQ: Who is actually selling this property?
An auction is a crowded affair. There are vendors, real estate agents, auctioneers, other buyers, buyer’s advocates; the list seems to go on forever. So it’s understandable that people get confused as to who actually has the right to sell a property, and more importantly, who you need to get to know to get the best auction result.
To assist you in your property journey, here is a short who’s who on the vendor’s side of the deal.
Once the gavel is down, the auction is over, so stay on the good side of the auctioneer!
The auctioneer is probably going to be the person you remember the most. Often loud and bombastic out of necessity, this is the person trying to coax the next bid out of the crowd of buyers and bangs the gavel when the auction is over. They conduct and command the flow of the auction but ultimately they are not selling the property.
However, they are still, as you can imagine, very important. They can refuse bids that are too low in increment and they are also often the ones who administer any vendor bids. Once the gavel is down, the auction is over, so stay on the good side of the auctioneer!
The vendor’s agent
This is the financial professional who is advising the vendor. They will typically run the marketing campaign that likely brought you to the auction in the first place and they will often insist on being present at the auction and taking part in any subsequent negotiations.
The vendor’s agent is a particularly good person to get to know, as most enquiries for the property will, at some point, go through them. However, while they are usually paid a commission for the property (and thus have a stake in getting a good price!), they do not ultimately decide when and to whom the property is sold.
This is the most important person as they own the property and thus have the final say over all property decisions.
This is the most important person as they own the property and thus have the final say over all property decisions. While they receive advice from their agent and likely the auctioneer too, when the question of what the reserve is, whether the property passes in or whether the property goes on the market, it is the vendor who has the final say.
These are the three most important people that you will encounter on the other side of the auction podium. The auctioneer cajoles, the agent advises, but ultimately, it is the vendor who has the real power when selling real estate in Australia or New Zealand.