BUYER ESCAPES FROM AUCTION

Agent ignores Real Estate Institute training.

My friend auctioned her house last Saturday (28th October) (in Queensland) with disastrous results.

I can’t believe what happened.

At the auction the bids started at $500K then $600K then $700k then $800k then $850k then $900k all genuine bids.

The auctioneer then went “to seek further instructions from the vendor”.

She and I talked and I thought it was a great price and she agreed and “she put it on the market”.

But…..the highest bidder then started to have second thoughts and was saying out aloud, “Oh, I didn’t want to go that high. Oh, I feel sick ….. Oh, I didn’t want to go that high”.

Next thing, the highest bidder puts his bidding paddle down, leaves the property and jumps in his car and drives off.

The auctioneer then says that bidder is the highest bidder and the vendor has agreed to his offer. He then “sells” the property under the hammer at $900,000 to the bidder who shot through.

The auctioneer said he can legally sign the auction contract on behalf of the highest, now absent, bidder (which he did) and instructed the agent (who marketed the property) to drive to the highest bidder’s home and ask for $45,000 deposit, which she did.

The agent then rings the seller to say she spoke with the highest bidder but he said he “is sick and wants to vomit”. He wouldn’t give her the deposit and he wouldn’t sign the contract.

So what’s the bloody point of having an auction if the highest bidder reneges on what he has put in as an offer?????????

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The Real Estate Institute of Australia has a training manual which advises agents to “move quickly before they [buyers or sellers] have time to dwell on the price.” This agent was too slow.

As the auction draws to a close, agents are supposed to move in for the kill, just like trained pit bulls.

Clearly, this agent allowed an emotionally distraught buyer to get away. Dreadful. A lack of killer-instinct, as they say in sales.

In Victoria (where they take auctions more seriously), the Real Estate Institute (REIV) gave the following advice to agents about how to handle nervous buyers at auctions, “Make sure you keep an eye on them and always look for possible escape routes.”

This Queensland agent has failed. The buyer has escaped. Last seen fleeing at high speed.

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