How Auctions Remove the “Pause Button”
When agents push consumers into making spur-of-the-moment decisions, they remove one of the most fundamental safety points in negotiation – the ability to be able to think it over.
In negotiation, this thing is called being able to “push the pause button”. When this gambit is taken away, consumers are at mercy of agents.
At auctions, agents place tremendous on consumers to “act now”. When the bidding pauses, sellers have eyes of the crowd upon them.
The auctioneer may yell, “We are just getting instructions from our vendors”. But the vendors who gave the instructions before the auction, are now being publicly pressured to change their “instructions”. The agents wants a sale. Now.
Embarrassment and intimidation is a deliberate manipulation strategy at auctions.
3. The Frenzied Buying Trick
Agents say that buyers get swept up in the emotion of the auction. This rarely happens. Sure, at some auctions for low cost items, such a bric-a-brac or clearance sales, people might get carried away. Auctions for family homes are entirely different to clearance sale auctions.
Buyers cannot bid more than their financial limits. The way agents talk about the “frenzy” at auction, it appears that buyers have unlimited funds. Buyers do not buy because of the auction. They buy because they want the home. The method of sale does not increase their ability to spend.
4. The Attract Buyers Trick
Agents say that auctions attract more buyer. This is not true. Auctions repel buyers.
Buyers generally detest auctions.They often say “We do not want to look at anything for auction”. They only turn up to auctions if it is the only choice for them. It makes no sense to offer a home for sale using a method that most buyers detest.
This is especially true in areas which agents call “auction areas”. The agents will tell sellers, “In this area, everybody uses auction. If you don’t auction, people will wonder why”.
This is even more reason to avoid auction because more buyers will be available to look at homes which are not being auctioned. In “auction areas’ buyers want to buy homes just as they do in all areas.
Buyers aren’t attracted to auctions, they are attracted to homes.