What happens if the hammer falls before your bid is received?

It’s an important question, and one that no bidder really wants to test.

Occasionally, we witness this, but rarely has it happened when I’ve held the final bid. Yesterday, however was an interesting day for the attendees at the auction of this property in Geelong West. Standing in the crowd were our clients, three other bidders and a lot of onlookers.

I started the bidding with a figure at the bottom of the quoted range and I sparred with another duo until reserve was reached. At that point another bidder had entered the race, but it was abundantly clear that the auctioneer, (and listing agent who was handling the sale) was focused on another person in the crowd. Apparently this other person in the crowd had shown interest in the property during the campaign and the auctioneer was clearly anticipating that they may bid.

My initial opponents were out of the runnings after a couple of quick, staccato-style bids and the third bidder shook his head adamantly as the auctioneer implored him for one extra bid.

I had been holding the highest bid for some three minutes as the auctioneer attempted to extract a higher bid from the pair I’d been duelling with. I had to remain composed, stay patient and let him perform his craft.

“Just another thousand… you don’t know, it might be the winning bid.”

Yet, they shook their heads and motioned that he could just knock the hammer down to me. The auctioneer then re-approached the bidder he’d considered may have placed a bid. “It’s very quiet over this side of the crowd”, he implored. He reminded everyone in the crowd that the property was indeed about to sell. One by one, he asked the two other bidders if they’d grant him permission to sell. Each nodded.

With yet one more slow auction call, “For the first call! For the second call! For the THIRRRRRD and final call, are we all done? Are we all out? The property is selling, selling, SOLD!”

And as the contract hit his hand, the quiet bidder on the ‘other’ side of the crowd called out “…another five“.

The crowd gasped.

The auctioneer looked pained. After all, here he was, some twenty minutes after commencing the auction, and having worked the crowd energetically, only to experience one of the bidders offering a miss-timed a last-minute bid. It is never joyous scenario for an auctioneer.

The late bidder was reminded of the auction rules that were not only cited at the start of the auction, but had been on display for the thirty minutes prior to the auction start. They were also told that ample opportunity had been given for them to make a bid.

No doubt, they were upset about it, but a late bid is a dangerous strategy.

Auction rules are clear and the penalties for agents who breach can be very harsh.

It was one auction I’ll never forget.