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Just like agents do, auctioneers should be working on the parties who are participating in an auction prior to kicking things off, according to Tom Panos.
He was reflecting on his recent The Block cameo on the latest episode of Real Estate Exposed alongside Phil Tarrant when he said that sale “was the easiest auction I’ve ever done”.
According to him, “it was over in about two minutes.”
“Everyone else’s auctions took half an hour, [with] low bids. I just went in, and it went from $3.3 (million) to $3.93 million in two minutes.”
Mr Panos acknowledges brothers Josh and Luke Packham were far from favourites – “in fact, they were always talked about as definitely not going to be winning The Block”.
While they didn’t take out the top spot, they ended up coming in second place with the assistance of Ray White Cheltenham’s Kevin Chokshi.
According to the auctioneer, it’s a big lesson in why you should never underestimate what could happen in an auction before the auction actually takes place.
From his perspective, the success of that auction on The Block came about because he took a leaf out of real estate agents’ books – and he advises others to do the same.
“If you think about it, a real estate agent works on the vendor before the auction to get a realistic reserve. A real estate agent works on a buyer before the auction to build a connection and to educate them up to paying a specific price on auction day,” he said.
Josh and Luke’s auction was towards the end of the day – and Mr Panos concedes he had been nervous about missing his flight back to Sydney. To ensure a swiftly moving process, he addressed the audience before the auction process commenced.
He said he told bidders: “I’ve got a six o’clock flight. I’m going to ask you to consider giving me a fair and reasonable start, and I’m also going to ask you to go up in increments that are fair and reasonable, at a level that you think is good value for you, and let’s not play games.”
Noting the auction was as much about the television opportunity as it was the chance to own a new home, Mr Panos said he also told potential bidders he would “make a point of making it really obvious who you are when you’re bidding – so if you want to be on TV, I’ll make a point”.
According to the REB head coach and trainer, acknowledgement of environmental factors can help both agents and auctioneers alike.
“Let’s face it. If someone’s got a second inspection on a property today with a buyer that’s seriously thinking about buying that property, why wouldn’t you ensure that when you get them through at four o’clock today, that outside the property, you’ve got another buyer coming to inspect it at 4:15?
“It shows social proof that others want it. It shows scarcity. If you don’t buy it, there’s someone else here that might look at putting an offer in. It shows that it’s the kind of property that has got interest in it, right?” he considered.
This doesn’t mean you lie, Mr Panos pointed out, but rather you use environmental factors or create conditions to actually suit the purpose, or rather “using theatre to create urgency”.
Another recognisable trait of the auctioneer’s “street theatre” is to instruct would-be bidders not to wait until they hear the words “on the market” prior to the auction’s start.
Outlining that they’re not in any of the laws or terms and conditions that surround auctions, Mr Panos explained that he instead prefaces an auction with “when I’m at the number that I can sell at, you’ll see me get ready”.
“The problem is that if people are going to sit down and only wait till bidding when the property’s on the market, like no one’s going to bid, right? No one’s going to bid,” he said.
Catch the full episode of Real Estate Exposed with Tom Panos and Phil Tarrant here.
REB has previously illustrated how McGrath’s Scott Kennedy-Green secured the season-high bid of more than $4 million for eventual winners, Mitch and Mark.
ABOUT THE AUTHOR
Grace Ormsby
Grace is a journalist across Momentum property and investment brands. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communication (Journalism) from the University of Newcastle. She’s passionate about delivering easy to digest information and content relevant to her key audiences and stakeholders.
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