Back in the late days of the 20th Century, when Real Estate Agents were cowboys, and Auctioneers would take the occasional bid off the walls at in-room Auctions or off the trees from on-site auctions, I remember an Auction that would remain in my memory for decades to come.
The Auctioneer would often have a little nip or two before the Auctions, in his Lower North Shore Auction rooms. The Agents would sometimes tell their buyers to come early to register, and when they arrived sometimes up to 45 minutes before the commencement of the Auctions, they would be encouraged to go across the road to have a “coffee” when in fact the only place across the road was a pub.
One particular night I witnessed an Auction where the Agent who was not only a Principal in her office, but also the top performer of her Franchise, work very hard on the floor to sell her client’s property for the highest price.
Unbeknownst to the Agent, her Vendor had organised a friend to Dummy Bid on her behalf, (Dummy Bidding is frowned upon as well as being illegal). The Auction went well, after a bout of furious bidding, the Reserve was exceeded and when the Agent asked the Vendor if it was “OK to sell? then as soon as the nod was given the Gavel came thundering down!
Moments later, a very red-faced and frightened Vendor ran up to her Agent and whispered in her ear. Suddenly the Agent’s face also turned red, she then grabbed the Vendor’s arm and they both rushed towards the Auctioneer to let him know that the Vendor’s friend (who had no money and no intention of buying), had been the highest bidder, and the Vendor had gotten too excited to notice during the Auction.
The Agent asked, “what happens now?” The Auctioneer said “Well, you are going to lose your license” and pointing to the Vendor said, “you are going to jail.” Then he said “Alternatively, you can go to the underbidder, tell the truth, and accept whatever he offers.” They did, and the property was sold for $50,000 less.