More than a decade on and the phenomenon that is Reality TV continues to roll out more and more cringe worthy spectacles. Who said it wouldn’t last?
Ok, I have been known to immerse myself in the sparkle, silicon and veneers of The Housewives of OC or drool over some Top Chef fare, but being the Real Estate tragic that I am, I tuned in, for the first time, to The Block Auction Finale, and I was not disappointed. My watching of TB finale was similar to observing a sports fan going through the highs and lows of watching their favourite game.
I buried my shaking head in my hands at some of the Auctioneering techniques and strategies (or lack of them). Yelled mild obscenities at the ungrateful sister act as their property was passed in and laughed hard and knowingly as Scott Cam revealed the ‘Network paid too much for the properties’ reserves.
The reality of this whole exercise was not an accurate depiction of the Auction process.
Firstly, at no time did the Auctioneers threaten any of the bidders with ‘highest bidder gets first crack at the property if it is passed in.’ Second, the mysterious woman with jet black hair in the front row should have been shamed into opening her purse a little further after a couple of incipit $1,000 bids. Third the portly little Auctioneer of noble Mediterranean heritage should learn to pace himself. He was out of the block that quickly that I literally thought he was going to explode.
(For more info on The Block go to http://homes.ninemsn.com.au/theblock/ )
Next, and I understand the winner of TB was based on best result ‘under the hammer’, no-one took the time to explain to the television audience or the contestants for that matter, that negotiation straight after the passing in of property still yields fantastic results. One couple who sold in the last day or two, ‘post auction’ pulled $70,000 over their reserve! That’s a better result than the winners on the night.
The Auction process is about unearthing buyers who are willing to pay a reasonable price in a reasonable time in a challenging market. There is absolutely no failure if a property is passed in. The only failure is if all those involved in the sale process don’t listen to the collective opinion of the market and maintain an over estimation of the true value of the property.
I believe all the properties are now sold and the worst result was the home renovated by the sisters who sold for bang on their reserve price straight after Auction. Their performance, when their property was passed in, should see their papers stamped by Channel Nine – “Do not invite back to The Block Masters Series.”
Some of my Queensland Real Estate Peers have been critical of the practice in Sydney and Melbourne of Agents placing price guides on Auction properties. The ‘investigation’ by the Victorian Fair Trading Office was at best a publicity stunt to gain a larger audience. All the quoted prices were very close to eventual sale prices. Why do you think that Sydney and Melbourne are achieving 50%-60% clearance rates at Auctions? Because the buyers are given a general guide on price – they actually have something to aim at. I do not condone for one second the practice of ‘Bait Pricing’ which understates the expected sale price of a property to give unsuspecting buyers false hope and pump up the number of ‘interested parties’.
Properly researched price guides are a solid indication of market activity and the prices being obtained other similar properties that have recently sold. Ultimately it is the buyers who determine the eventual sale price of a property, especially in the evolving market we are now experiencing.
The Block Finale entertained over three million Australians. Those who believe the Auction process is a waste of time, as one the contestants bemoaned, should not take this television spectacle as an accurate example of how a tried and proven process actually works.









