Here are 14 real estate auction tricks which trap thousands of home buyers and sellers. Don’t let them trap you.
We start our list of real estate auction tricks with the most notorious and well known real estate tricks…
1. The Dummy Bidding Trick
How do you have auction if you only have one buyer? Well you don’t do you. You just can’t. A dummy bid to an auction is like a spark plug is to an engine.
2. The ‘On the market’ Trick
When the bidding for Sharon’s home reached $495,000, the agent used a common crunching trick. He told Sharon that to “stimulate the bidding” and get the price higher she would need to put her home “on the market”.
Many sellers do not realise that “on the market” is industry jargon for “selling at the price offered”.
No Time To “Dwell on the Price”
The aim for most agents is to make the sale at the auction by using high-pressure tactics before consumers realise what is happening.
A manual published by the Real Estate Institute of Australia teaches agents what to do. It says “ Move Quickly”, Don’t give them time to dwell on the price”.
The trauma to consumers last long after the agents have spent their commissions. Today, Sharon still has nightmares and says she can burst into tears just thinking about what happened.
Agents may use methods that don’t give consumers time to dwell on the price or on the consequences of instant decisions but, later, consumers have plenty of time to dwell on what happened.
For many people the trauma is so severe they never recover. They suffer for the rest of their lives from a system which has always exploited sellers and buyers. The real estate industry has known for years the pain inflicted on consumers with auctions.
Horror stories are denied or covered up. Meanwhile, the industry still touts auctions as a fair way to sell or buy property, never mentioning the grave risks or that there are no second chances when making such mammoth financial decision, usually alone and unprotected on a weekend.