Designed for doing business

VICKI HOLDER opens the door on holding auctions in real estate agents' rooms.

Auctions held "in rooms" means holding the auction away from the actual property to be sold, in a comfortable room, big enough for crowds to gather before the auctioneer.

When a property is auctioned in such a venue, usually several other properties are being offered at the same time. Because there are other properties involved, the chances of a crowd gathering at the venue are high. There's never the embarrassment of nobody turning up to the auction.

In the past, auction rooms were merely community halls or churches. Today, many real estate companies have special rooms designed as sophisticated conference facilities incorporating comfortable seating, screens for presentations, telephones, faxes, internet, waiting rooms, meeting rooms where negotiations take place and cafes where people can meet prior to and after the event.

Richard Valentine, of Bayleys, says his company has spent a considerable amount of money to create a more professional business environment for their auction room.

"It has the facilities people need during an auction, particularly when we have a number of offshore buyers where you need access to the phone," he says.

With a similarly sophisticated, custom-designed facility, Barfoot & Thompson's rooms are, according to auctioneer Brett Trigger, not only efficient, but an enticing place to do business. "The vendor and purchaser come to rooms to do business. They are serious about buying and selling when they come here," he says.

Comfortable in all weathers, rooms avert the security issue some people have when inviting strangers into their home.

Valentine and Trigger reckon the rooms' situation is a good barometer, because it lets auction participants get a feel for the market and for the auctioneer's style. At Barfoot & Thompson, around 15 to 20 properties are auctioned during a session, so people see the prices being achieved and the numbers of bidders around. They also gain some idea of what price to expect for the property they are selling or buying.

By holding auctions on site, you can't move the crowd around, so bidders can see only one aspect of the property. Neil Newman, of Ray White Auction Services, says that with a good visual presentation in rooms, you can take buyers through the whole property with ease - a picture paints 1000 words. Pictorial aids paint a rosy picture in all weathers.

Many special-interest properties are auctioned on site. But there's always the danger, says Newman, that vendors can become too emotionally attached to their home, which hinders decisions. "Rooms let the agent and auctioneer reinforce the positives," he says. "It's an orderly, controlled environment where you don't have the neighbour's son turning on his car engine to ruin the atmosphere of the auction."

And because auctions in rooms are held at a regular time and during the week, the real estate agent's time is freed up to attend open homes on weekends.