Analysis of Property Auction Process and Observation Report

This report provides a detailed analysis of the auction process, focusing on property auctions. It begins with an introduction to auctions, explaining their mechanism and purpose. The report then delves into different types of auctions, including live, online, and sealed bid auctions, highlighting their characteristics and applications. It also covers pre-auction strategies, such as pre-auction bids, and their impact on the sale. The report further examines the marketing phase, detailing the stages involved and key considerations for both buyers and sellers. The second part of the report focuses on observations from a real auction, including the professionalism of agents and auctioneers, and the process of recording bids. It also discusses relevant regulations and the role of the real estate agent in the process, including bidder registration and the legal requirements for record-keeping. The report concludes with references to relevant literature on auction theory and practice.

Prepare for auction and
complete sale

Table of Contents
TASK 1............................................................................................................................................3
Report..............................................................................................................................................3
Introduction..................................................................................................................................3
Types of Auctions:.......................................................................................................................3
Marketing phase...........................................................................................................................4
TASK 2............................................................................................................................................6
Report..............................................................................................................................................6
Introduction..................................................................................................................................6
Observation..................................................................................................................................6
References........................................................................................................................................9

TASK 1
Property for auction:
Property Name = Hudson MC. Hugh
Owner = Lars Foged
Address = 19a Bishop Street, Petersham
Property type = House
Size = 186m2
Starting Price = $ 1,150,000
Report
Introduction
An auction is a mechanism where a bidder collects the bids of participants when the person sells
the stock but cannot give them within a certain period of time. This tool is essentially a form of
punishment deducted from the costs of bartering. Therefore, maintain a safety precaution so that
consumable stocks do not enter the holiday cycle. It usually happens due to the inconsistency of
a financial expert.
The auction pricing is responsible for calculating the value of the property on the day of sale.
The base or minimum closing cost will be 20% lower than the end-of-day cost prior to the day of
sale. Assuming it is less, buyers can collect, however this separation goes to the Investor
Protection Fund (IPF) and is not given to buyers (sellers give the addition to customers).
However, say the possibility that is higher, customers have to pay reputation.
Types of Auctions:
1. Live Auction: This type of Auction conducted on property site or in a meeting facility room
especially in a hotel convention facility.
2. Online Auction: In this type of Auction, bidders compete on a particular property and submit
their bids online.
3. Sealed Bid Auction: This type of Auction is useful for confidential bids where seller
considers optional terms of sale.

The current property lies under Live Auction category; the venue of Auction was decided near
the property area.
Pre-Auction:
Pre-Auction is a competitive environment for two reasons:
i. Some buyers are afraid of losing their property on auction day.
ii. There may be a number of pre-auction suggestions Remember when reviewing pre-auction
bids, everyone else who has invested must bid the same type of bid.
Advise sellers not to go against any pre-Rop recommendations (otherwise they reflect their cost
savings) and simply accept unrestricted pre-Rop advice (unless the seller agrees). All buyers tell
the buyer that the offer is not enough and must withdraw their offer to secure the property or to
take risks at the auction. So this will encourage them to pay more.
Marketing phase
STAGE ONE
The first stage of the sale is the first two months of a property investment. The operator manages
this promotion period at no cost to property. A buyer can make a proposal to purchase the
property at this stage, but there are a few things to keep in mind.
1. The reason a trader might recognize a recommendation before the closing day is that it seems
to assume that the customer’s supply is so high compared to other investors that they don’t
understand a cost similar to bartering; Who has no other commitment to ownership and agrees
not to get a contract under the hammer or is happy to be satisfied with reaching the market to get
a contract.
2. The seller is unlikely to object to a customer offer, so trading before the closing date is good.
3. On the off chance that not many buyers are motivated by the property, it is likely that the
seller will decide to sell the property and wage a bidding battle to cover the cost of the most
recent contract. Buying before the day of the sale can work in favor of a buyer in a volatile
market or when buyers actually know the motivation for the sale and understand the type of
market as a whole, it is likely to pay they are a base price to be sure.

STAGE TWO
The second phase is the close of the day and there are six key points to bidding at an auction:
1. Letters to customers are marked and saved. Home buyers would go out and buy the property.
It can be interesting to buy just another $ 1000 because customers think they can get it, but these
small offers are fast approaching.
2. Offer for sure. Volleyball offers a quick refund and customers seem to have endless pockets.
It's a scary strategy that works many times over.
3. Specific non-verbal communication cues are the main indicator of whether a bidder is close to
breaking point.
4. Buyers are familiar with the bar before closing begins so the seller understands that customers
are bidding. Stay out of the barber's eyes during the show and find out where there are different
candidates in the group.
5. Stay in the post position. If the closing party does not reach the bailout, it will be given to the
most respectable bidder with the primary right to decline. This means that no one else can side
with the trader until the most reputable bidder has chosen not to buy the property. If the building
enters.
6. It can still be a strong buying call if shut out. When they are against intelligent traders, buyers
can end up in a very heavy situation during an exchange. In case customers are not happy to talk
to the expert a buyer was used. A certified buyer specialist will be on offer in a number of sales
and will have the knowledge and experience to control customer behavior.
STAGE THREE
The third stage can occur if a property is passed in at the auction. This will be an unclear period
of time (occasionally days, now and then weeks) in which the building is driven by a fixed cost.
The fixed cost can be the last offer made to the block, the offer of the sellers, the owners save or
all usually cost according to the desire of the block chain. Owner for the cost of the contract.

It is vital to ask the expert where the cost is coming from and understand what the last live offer
was (meaning an offer rather than a seller's offer) as this will give buyers an indication of where
the market believes in value of the property rather than where the owner and operator think it is.
Also, it is a period of time in which a buyer can introduce or change the terms and conditions of
an agreement that may not be accessible under the terms of sale. Future events have a more
attractive / limited liquidation period, with the offering likely to finance or manage or own or
acquire the cubby house.
TASK 2
Report
Introduction
The law prohibits an operator of land or warehouses and stations from conducting property
swaps unless the licensed expert is authorized to be a barber. The Secretary may authorize an
authorized executor when it is determined that the person has the adequate capacity to conduct a
sale in accordance with the Certification Order issued by the Minister. An operator with a real
estate agent license or a warehouse and station specialist license (Class 1 or Class 2) can apply
for a credit, with the possibility that they cannot demonstrate a good result to any level 3 unit
certified by the Certificate IV in use of the building (CPP41419). An authorized licensee will
usually qualify for the opportunity that was not granted in the year preceding their new credit
application.
This report is based on observation at Auction site. It includes professionalism of agent and
auctioneer; how they record the bids collected from participants. Every information related to
number of calls and result of auction has been discussed in this report.
Observation
A real estate agent is a licensed professional who is involved in the sale, purchase or
management of property for others. A buyer will usually use them to sell a property for their
benefit, but potential buyers can use a specialist to provide advice and assistance when buying a
property.

The seller's job is to make sure that the offer is maximized and that the offer continues to grow in
potential heights. Rule 3 of Annexes 1, 2, 3 and 4 of the Sale of land (public auctions)
Regulations 2014 states: The seller may determine the amount required to be offered to do.
The only purpose of the buyer is to limit the cost of the contract and therefore will continue to try
to minimize the offers. Therefore, a trader bidding on a buyer should meet the buyer's goal of
limiting the cost of the contract. The precarious situation arises when the seller's land agency
specialist makes an offer for a buyer when his group closes. This operator is directly involved
illegally according to the rules of the Real Estate Agents Regulation (Professional Conduct) of
2008.
Agents pre-register bidders in advance of the auction to save time on the day. This is done when
design buyers are evaluating the property. Traders ask potential buyers to visit or call the bidding
specialist's office to record their target by providing their name and address. A large number of
subtleties in the register of bidders have expired prematurely, for example, the address of the
property and the name of the owner. When pre-registered candidates show up at the bar, the
activists proved they are an individual by examining their evidence of character. The next buyer
has provided the offer number.
The notice on display is for absolute Auction bid where the highest bid will win the property
rights and ownership. The notices are displayed on various places which includes; public notice
boards, in front of Auction property, newspaper, internet (social sites) and messages to previous
participants.
The Bidders Record is responsible for all the legal requirements for record keeping. Once a
bidder's record has been created, the operator who was responsible for saving it will be in a safe
place in each case for 3 years and also keep all the bidder's registers together, as a record of
tender registers. The bidder's record may be validly executed on a nearby PC or it may be
transferred to a later PC. Logs may be stored on PC or other electronic storage devices, so that a
printed copy can be delivered to NSW Fair Trade when required. If a single bidder register is
created for sale that includes multiple traders, the records of each specialist should take into
account the subconscious of the expert who made and maintains the individual's record bid for
that arrangement.

The bidder cards used consecutive numbers with the gap of 5 (this represents $ 5000); each
bidder card number represents thousand dollars. Each bidder were given bidders guide to
understand terms and conditions of bidding and ask if they have any issue or difficulty in
understanding the terms.

References
Krishna, V., 2009. Auction theory. Academic press.
Milgrom, P., 1987. Auction theory. In Advances in economic theory: Fifth world congress (Vol.
1, p. 32). Cambridge: Cambridge University Press.
Godin, P.B. and Lymburner, J., Bid Com International Inc, 1999. Computer auction system. U.S.
Patent 5,890,138.
Nymeyer, F., 1971. Auction market computation system. U.S. Patent 3,581,072.
Milgrom, P. and Milgrom, P.R., 2004. Putting auction theory to work. Cambridge University
Press.