Fake auctions in Sydney: ‘It’s to bait a buyer,’ says auctioneer Damien Cooley

As the property market slumps, agents are resorting to a range of questionable methods to try and fire up wary buyers.

Auctioneer Damien Cooley at an auction in Alexandria recently.

As the property market slumps, agents are using a range of gimmicks to lure buyers: among them: “fake auctions”.

Top auctioneer Damien Cooley has slammed the growing trend of properties being advertised as “auctions”, when there’s actually no intention to go to auction at all.

“They don’t book an auctioneer,” he says.

“They simply advertise the property as an auction, but hope the word ‘auction’ puts pressure on a buyer to make an offer.

“It’s bait for a buyer, getting them into thinking it is an auction.”

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Cooley says agents are using the word “auction” as bait to lure buyers when they haven’t even booked an auctioneer for a particular date. Picture: Gaye Gerard

Cooley says that when a buyer decides which open homes to go to on their busy Saturday, they’re more likely to go to one advertised as an “auction” because it suggests there’s a deadline — even though no auction date is listed.

Agents such as Paul Biller, of Biller Property in Sydney’s east, say it’s a legitimate strategy — “particularly in the market we’re in now” — and he often does it.

He’s had a three-bedroom home at 108 Birriga Rd, Bellevue Hill advertised as an “auction” for 35 days, but is yet to specify a date.

“We use ‘auction’ because it puts pressure on the buyer … we’re often only seeing one registered buyer,” Biller says.

“We’re not getting half a dozen buyers on a property like we were last year.

“Personally, I leave it open-ended.”

Biller denies the process is misleading, saying in his case, there’s always an intention to have an auction.

108 Birriga Rd, Bellevue Hill has been listed as an “auction” with no auction date for 35 days.

“If there are multiple interested parties, we set an auction date,” he says.

And there’s an extra bonus: The agents can be vague about the price expectations rather than a specific asking price.

As Biller says: “If a vendor wants $5m, with an auction we can guide $4.5m to $5m.”

Randwick agent Justin Bell of Ray White Park Coast East agrees it’s a smart strategy that he often uses.

“Auctions where we haven’t confirmed the date — it creates urgency in the marketplace, which is definitely what you need,” he says.

“The days of five or six buyers going to auction are not there any more.”

Richardson and Wrench Double Bay veteran Michael Dunn has a home listed for “auction” with no date at 1 Hillside Ave, Vaucluse.

However, in this case, an auction had been booked for last week, but cancelled.

“Buyers are taking longer to get their ducks into line,” he said.

1 Hillside Ave, Vaucluse, is listed as an “auction” with no date, after having its auction cancelled this week.

“Two groups came through on Saturday, but they’re getting themselves sorted and we haven’t set the new auction date at this stage.”

Yet another sign of the changed property market as the spring sales season looms.

Leading buyers agents such as Simon Cohen and Peter Kelaher caution buyers to look out for other gimmicks that some sales agents use to attract buyers and seal a deal in the tougher market.

These include fake buyers — pretending there are others interested in the property; fake offers — there could well be none; suggesting it’s a forced sale — “the sellers are desperate, you’ll get a bargain”; “styling the hell out of it” — making vendors do the work; longer auction campaigns — six weeks instead of four; price guides rather than a fixed asking price.

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