This unit of competency specifies the outcomes required to prepare for an auction and complete the sale of property. It includes implementing the auction marketing plan, preparing auction documentation, confirming the reserve price with the seller, planning and implementing auction day procedures, and completing follow-up procedures after auction sale.
The outcomes required to conduct an auction are addressed in CPPDSM4004A Conduct auction. This Unit of Competence (CPPDSM4019A) is one of the elective units in the CPP40307 – Certificate IV in Property Services (Real Estate). These participant notes also provide underpinning knowledge for the Unit of Competency CPPDSM4004A – Conduct Auction.
Assessment for this unit includes tasks to be marked by your Assessor, which may include multiple choice questions, short answer questions, case studies, projects, role-plays and / or demonstrations. Assessment activities for this unit are provided in a separate assessment document, which has been customised to meet the legislative requirements in
your state or territory.
You may apply for assessment through NREL’s recognition process whereby you demonstrate your current competence through prior learning (RPL) by compiling a portfolio of evidence to demonstrate your skills and knowledge.
Your RPL will be supported by interview questions and / or third party reports to confirm your skills and abilities.
Competency in this unit will be demonstrated when you are able to show that you can meet the Elements and Performance criteria, shown on the following page. These have been extracted from the full Unit Descriptor which is
available upon request.
This unit will cover:
1. Implement auction marketing plan
2. Prepare auction documentation
3. Plan auction day procedures
4. Implement auction day procedures
5. Complete Follow Up Procedures After the Auction sale
A property well listed for auction, followed up by a competent, well-conducted marketing campaign and successful 3-stage process is perhaps the pinnacle of real estate selling. At a public auction the buyers are allowed to give free rein to their imagination and show the vendor, the agent and the world in general what they really think the property is worth. They put their money on the table and challenge the other bidders to prove them wrong. Many auctions have achieved thousands or even tens of thousands of dollars higher than indicated by an accurate market appraisal and frequently, both the buyers and former owners have thought that they have done well. Real estate agents and property commentators alike have been amazed by the value that the bidders have placed on the property. Of course, not all auctions are in the superstar class, but by paying attention to detail and following sound procedures you will help to ensure that your own auctions enjoy a very high success rate.
Success in sales can be measured quite simply: HV + HB = HS! Happy Vendor + Happy Buyer = Happy Salesperson!
A well advertised auction brings a large amount of buyers to the same place at the same time. Competition is created and there is no limit set as to how far the bidding will go. On the other hand, sales by private treaty, tender or sealed bid lack the excitement, enthusiasm and competition that the auction can create. Buyers looking at an advertisement often decide whether a property is suitable simply on the basis of price without coming along to judge the property on its merits.
They are reluctant to pay an asking price but if no price is advertised they have to put their thinking caps on and estimate a price for themselves. The price that they arrive at is more meaningful to them than the advertised price.
Almost always a buyer will offer less than the advertised price, because it is not their price. At an auction they appreciate that they are setting the value even when the bidding exceeds the anticipated price. The auction method has become today’s first choice in marketing Real Estate.