VENDOR �EDUCATION

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PRESENTED BY MARK MORRISON

WHAT IS THE PURPOSE OF AN AUCTION? �

To expose a property to multiple parties and allow them to compete on a specific date, in an open and transparent environment to achieve fair market value.

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WHAT ARE THE BENEFITS?

AGENT

• Opportunity to increase profile
• Opportunity to generate increased enquiry, therefore increased leads
• Opportunity to work to a distinct timeline
• Reduced days on market

VENDOR

• Best opportunity to achieve a premium result (owners priority)– discuss recent results
• Opportunity to work to a distinct timeline
• Reduced days on market

BUYER

• Transparency

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A FEW FACTS ABOUT AUCTIONS�

• An auction campaign generates considerably more enquiry
• An active auction lister will open more doors of sellers, due to increased profile
• auctionWORKS Data shows an auction campaign will generate a sale in 42 days on 85-87% of occasions – Discuss likelihood of days on market increasing
• An auction will often prompt others in the area to sell
• Journalist like writing about successful auctions
• Buyers may not like auctions but they like EOI and tenders less
• Vendors won’t embrace auctions if they don’t understand them
• Well conducted auction campaigns will always achieve fair market value
• Auction campaigns are often MORE WORK, but the benefits outweigh the input
• Auction is a 3 phase process, sell before, sell at, or sell afterwards; a result at any phase is a success.

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CONVINCING OWNERS TO AUCTION �

• The vast majority of people don’t understand the principles of auction. Learn them intimately and be prepared to educate sellers.
• Don’t let price get in the way of finding out what an owner wants to accomplish.
• Go armed with statistics and case studies. Have material available to back up your argument.
• Take control of the meeting and ask questions. Selling a property is not all about price – find out the real reason for sale and you will know how to win the business.
• What are they doing, why are they doing it, when do they want it done and how do they think it should be done.
• Employ the art of rhetoric. Know the answer before you ask the question.
• Invite objections and know how to handle them.
• If a vendor likes you, respects you and feels you are interested in their future, they will employ your services. Selecting an agent is not all about price either.

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WHY DO AUCTIONS WORK IN TRANSITIONING MARKETS?

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• An auction campaign sends a very clear message to the market that the owner is a serious seller.
• If ever a property needs exposure, it is during a tough market.
• Marketing without a price makes the phone ring and gives agents a chance to talk to buyers. Buyers have too much control with an advertised price.
• Auctions don’t cost any more than a well marketed private treaty campaign.
• Auctions focus all parties to a specific date.
• Auctions provide a 3 phase selling process whilst still generating competition.
• A well designed order of sale keeps agents in control and buyers guessing (INROOM).
• Auctions promote the motivation of a seller as well as the attributes of the property.
• AUCTIONS DRASTICALLY REDUCE THE DAYS ON MARKET.

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• Briefly discuss why In room auctions often work better through these periods.

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HOW TO COMMUNICATE WITH VENDOR DURING CAMPAIGN

• It is imperative that you determine from the outset how your vendor wants to be communicated with, written, verbal or face to face
• NEVER provide non written offers to your owner
• ALWAYS provide updated statistics as to how the vendors marketing is performing – be willing to adapt
• Ensure you are keeping your vendors informed as to any sales within the campaign timeframe which might effect their sale
• Ensure that vendor conditioning is consistent and not just in final week
• Provide accurate updates as to POSITIVE and NEGATIVE feedback

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SETTING THE RESERVE PRICE

• Try to have this meeting 1-2 days prior to Auction day – Discuss why
• Reserve price instructions can and SHOULD differ depending on circumstance
• Ensure that all statistical evidence for campaign is available
• 3 types of reserves:
• Inflated – Owner/Agent has inflated their reserve price for the purposes of achieving a better result (discuss limited interest and how this can add value)
• On Value – Owner has listened to the feedback and is reasonable
• Below Value – Owner is likely an institution and thus needs the property sold

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• Reassess original expectations and how or why current position has changed

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PRE-VENDOR DISCUSSION

• Remain confident and positive in all discussions – discuss
• A vendor should never be shocked negatively with the result on auction day – discuss
• Closed end questions (more related to buyers – but discuss)
• Request the reserve price – Discuss (higher/on par/below)
• Communicate your honest feelings to the owner
• Inform vendor of your game plan and explain why – Giving reassurance of tactics (opening bid discussion Anthony Cowie)
• Wish them luck and be positive

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HOW TO “BRIDGE THE GAP” ON AUCTION DAY

• Always focus on vendors original intention to sell
• Stay positive no matter the situation
• IF you are within your range, CONGRATULATE your owners, and reaffirm that their original goal is now achievable
• Reiterate the marketing success during campaign,
• DIALOGUE: Mr/Mrs Vendor your property has achieved x% more enquiry than all of our listings this month.

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• DO NOT advise owners they will get more if they “put it on the market”, Our role is to get a sale at that level

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• Focus on shifting market sentiment and potential losses IF they do not accept an offer on the day (draw on data)

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• Do not make reference to potential “other parties” who will be interested “tomorrow”, this sows the seed of doubt and is counter-productive

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• ALWAYS be seen to continuously work the crowd, vendors need to see this for their own comfort

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SCENARIO 1

Quoting $1,200,000, 3 registered, Bidding started $1,075,000, multiple bids up to $1,215,000 and bidding stalls; Vendors Reserve $1,300,000.

• Question 1: Who do you speak to first? Why?
• Question 2: Who do you avoid? Why?
• Question 3: What to say to vendor? (Confidence is key)
• Likely Response: No, but I will take …..
• Unlikely Response: NO, I want $1,300,000. Its that or nothing.
• Question 4: How to finalise agreed offer with Buyer/Auctioneer?
• Question 5: What to do if an agreement can’t be reached?

Tip: Be confident that you have achieved within your quoting range. Remind vendors how many parties have participated. Ask Yes/No questions, not the time for discussion.

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SCENARIO 2

• Quoting 2.3-2.5M, Reserve is $2,500,000 and now evident property is worth somewhere in the low 2M’s. 0 registered bidders. Vendor wants a vendor bid at $2,450,000.

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Question 1: What should the agent do PRIOR to the auction.

Question 2: How do you deliver bad news? Auction day or prior?

Question 3: Would you accept their Vendor Bid of $2,450,000? Why?

Question 4: Should you run the auction? Yes or No?

Question 5: Should the vendors be present?

Question 6: What are the next steps after auction IF you chose to run it?

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Tip: Be very careful where your Vendor bid is placed. Sometimes the best way to educate an owner is to show them.

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SCENARIO 3

Quoting $1,300,000. 40 enquiries, 4 interested parties, 3 contracts holders, 2 weeks out from auction, party offers in writing $1,350,000 prior to auction. Likely at this stage 2 others parties are still interested.

Question 1: What do you do and what do you advise your vendor?

Question 2: What would the buyer need to effect this sale?

Question 3: How do you communicate this interest to your other interested parties?

Question 4: Can you declare the exact offer?

Question 5: How will this effect the campaign and IF you don’t accept, what do you need to change?

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Tip: Market dynamics have shifted so offer MUST be considered. Bird in the hand. Qualify your buyers position as best as possible as accepting COULD cost the vendor a lot of money.

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TOP 10 MISTAKES AGENTS MAKE WITH VENDORS DURING CAMPAIGN

1. Under or Over quoting to Vendor’s at listing presentation
2. Focusing on PRICE during campaign and not owners motivation to sell
3. Declaring unsubstantiated and unqualified offers to the vendors
4. Poor communication, leading vendors to feel uncertain as to what is happening
5. Not adapting marketing schedules to reflect property type, enquiry levels and most importantly communicating success of lack there of with vendors
6. Not providing consistent and up to date recent comparable sales which may affect your sale
7. Living in false hope and making your vendors believe in an unrealistic outcome
8. Leaving their vendor conditioning until the final few days
9. Not understanding when it is best to Sell Prior/Postpone/Withdraw
10. Not understanding that auction is a 3 phase process, Sell Prior, Sell at auction, or Sell after auction

OWNERS NEED TO KNOW AND UNDERSTAND THIS

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BUYER�EDUCATION

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PRESENTED BY MARK MORRISON

VENDOR / BUYER – 50/50 FOCUS

• Selling real estate is often not about the product being offered, rather the relationship and trust which has been developed between an agent and a vendor/purchaser.
• Leading agents are reaping the rewards from the work they did 5-10 years ago. This is a long term industry!
• Previous years market dynamics resulted in agents sole focus being vendors, and their ability to list more property
• Transitioning market means we must adapt and focus our attention on ensuring buyers are comfortable and have everything in order to proceed with transaction
• Average number of registered bidders and enquiries has reduced significantly, proving how important it is to correctly manages these enquiries.
• Remember purchaser will become your future vendors or managements
• Buyers Agents are our best friends at the moment, they need a deal just like us

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IMPORTANCE OF GETTING YOUR QUOTE PRICE RIGHT!

• If a vendor is well over-priced and you simply don’t believe you can achieve their expectations, be willing to walk away.
• As the market transitions buyers will inevitably have more power
• Properties with an unrealistic quote range in this market are achieving little to no interest
• Owners are still wishing to achieve a premium, however buyers feel the market has corrected and want a reduction on price.
• Buyers are in a more powerful position than they were 12-18 months ago, therefore they will expect a price reduction. (Show drawing of current market cycle and where we are positioned)

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WHAT CAUSES A LIMITED RESPONSE?

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• Marketing
• Quality of the property
• Quality of the agent
• The location
• Market conditions
• External influences eg. – Interest rates, Supply/Demand, Media

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• PRICE

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DURING THE CAMPAIGN

• Work to a calendar, the same calendar you have provided your vendor. (wine)
• Get organised. Have all information and data on the property at your fingertips
• Provide constant and accurate information to your vendor (verbal and written).
• Get close to your buyers (transitioning market requires a change in psyche)
• Understand Buyers wants and needs.
• Ask questions.
• Answer their questions and keep them informed.
• Have email responses prepared so you are not rushing to answer their questions.
• Don’t live in false hope.
• Make sure they are prepared to buy – contract and finance.
• Talk them through the process of auction – don’t presume they know what to do.
• Encourage them to compete and get the auction started.

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PHONE ENQUIRY VS EMAIL ENQUIRY

• Auction Generates more enquiry, which only matters if you know what to do with it!
• New laws mean that all quotations given to prospective purchasers must be documented
• New website portals are making it harder for agents to get to know their buyers and educating buyers much more readily

PHONE

• Tip: “Sorry I have a bad line, could I get your name & number in case I drop out?”
• Tip: Don’t just answer questions, ask questions and work out what your caller is trying to achieve, potential vendor, buyer, neighbour…..

EMAIL

• Tip: Ensure you have good quality templates written for each property prior to launching online. These will save time, and ensure your quality remains high
• Tip: Don’t just answer questions, ask questions and work out what your enquirer is trying to achieve
• Tip: Sign-off with confirmation you will follow-up your email in due course with a call

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GETTING A BUYER TO AUCTION

WHAT DO ALL BUYERS OF AN AUCTION PROPERTY WANT TO KNOW?

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1. They have the capacity to buy it.
2. The vendor is realistic and intends on meeting the market
3. They are receiving reliable information from the agent (be prepared)
4. They are not the only ones that want the property

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PRE-AUCTION CHECKLIST

• Have you seen the property?
• Have you received a copy of the contract?
• Has your solicitor reviewed the contract?
• Has your solicitor requested all contract amendments with the vendors solicitor?
• Have you organised how you will pay your deposit? (10% unless otherwise organised)
• Personal/Bank Cheque
• Deposit Bond
• Electronic Funds Transfer (confirm transfer limit is acceptable)
• Macquarie Auction Pay
• Have you confirmed your account has sufficient funds to pay the deposit?
• Have you decided what name(s) will go on the front page of the contract?
• Would you like to pre-register for the auction? (if YES please click on the link provided in email)

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PRE-AUCTION CHECKLIST (CONT…)

• If you’re not available to attend auction, have you organised an authorised 3^rd party to conduct your bidding?
• If YES to above, have you filled in an Authority to Bid Form? (follow this link to download the relevant authority - http://www.auctionworks.net.au/auctions/auction-forms.html)
• Have you got your driver’s license ready to go for registration on auction day?
• If you don’t have driver’s license, have you got photo identification AND proof of address for registration on auction day?
• Are you comfortable bidding without any hesitations today?
• Have you got any further questions about the sale? (if YES please contact listing agent)

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AUCTION �FLOOR �NEGOTIATION

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PRESENTED BY MARK MORRISON

WHAT INFORMATION TO HAVE FOR THE AUCTIONEER PRIOR TO AUCTION

It is imperative that have all of the necessary information at your fingertips prior to meeting with the auctioneer. Some of the major questions we will ask are as follows:

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• Contract – Taxable Supply/Going Concern, amendments, issues which are likely to arise from prospective purchasers, all disclosures are annexed, ABSOLUTELY NO SURPRISES.
• Reserve Price – What the property is worth – Price you have been quoting the property at
• Any descriptive assets to the property the auctioneer may not be aware of
• Any pre-auction offers on the property
• How many interested parties will be in attendance
• What starting bid are you and your owner willing to accept
• Will it be necessary to use a vendor bid, and if so, at what level
• Generally discuss the game plan of the auction

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WORKING THE AUCTION FLOOR

• ALWAYS look positive and confident
• Start of auction introduction and move on
• Never move without purpose and direction
• Closed end discussions with buyers – Yes or no questions
• Get on the same level as the buyer
• Be empathetic and not forceful – discuss
• Always confirm with all purchasers prior to selling/Passing in
• Explain to buyers the ramifications of not being the highest bidder
• Body Language – Discuss
• Eye contact
• Always look to be expecting your result

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HOW TO ASK FOR AN OPENING BID?

• Focus on spending time with your buyers prior to auction day (discuss)
• Determine as best you can, who is your strongest and weakest buyer (discuss)
• Use one of these buyers to your advantage
• Dialogue 1: Mr or Mrs Buyer, we have been quoting (x) on the property, would you agree that you would be over the moon if you bought the property today for (x low price below quote)? (rhetorical question), Then Buyer, make that offer and if no one else bids, we will deal with you and you alone!
• Dialogue 2: John (low buyer) we have had some recent interest at or above the level we have been discussing with you. My advice to you is to start strongly and try and deflect other interested buyers from participating
• Dialogue 3: Jane (high buyer) you are in the best position to secure this property today. We have had some late interest and the best opportunity you have to secure the property today is to bid hard, bid strong and bid early.

BIDDING FOR THE FIRST RIGHT �TO NEGOTIATE

• This is only a courtesy in NSW and NOT a law, as it is in Victoria
• We believe in its ability to better the vendors result
• Agents should use this during the final minutes of auction negotiation
• Highest bidder wins the first right to negotiate
• By Auctioneer confirming property “wont be sold” rather passed in, this often gets more competition
• The major purpose is to try and flush out your best possible buyer
• Once this is completed, you then have the best chance to maximise owners return

HOW TO “BRIDGE THE GAP” ON AUCTION DAY

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• Always focus on vendors original intention Buyers reason to purchase
• Stay positive no matter the situation
• CONGRATULATE highest bidder, and reaffirm that their original goal is now achievable
• Reiterate the importance if being in top position for negotiation
• DIALOGUE: Mr/Mrs Purchaser you’re exactly where you need to be, I am now going to speak with the vendors and determine how close we are to selling this property.

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• IF TRUE, make reference to potential “other parties” who will be interested “tomorrow”, this sows the seed of doubt and creates urgency.

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• Buyers will become “precious” and feel unloved when agents go from party to party. Systemise the process and become more efficient at choosing particular parties to represent. Let me do the rest.

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• With vendors permission, use the reserve to your advantage. It’s the most powerful document in the transaction

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• Show reserve and ask the question. Will you pay this? Silence is key. Discuss logical back and forth.

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SCENARIO 1

Quoting $1,200,000, 3 registered, Bidding started $1,075,000, multiple bids up to $1,215,000 and bidding stalls; Vendors Reserve $1,300,000.

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Question 1: Who do you speak to first? Why?

Question 2: Who do you avoid? Why?

Question 3: What to say to vendor? (brief)

Question 4: How to present counter-offer to the highest purchaser?

Question 5: How to finalise agreed offer with Auctioneer?

Question 6: What to do if an agreement can’t be reached?

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Tip: Show Reserve & Will you pay it? What will you pay? Short sharp communication. Ask Yes/No questions, not the time for discussion.

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SCENARIO 2

• Quoting 2.3-2.5M, Reserve is $2,500,000 and property is (according to agent) worth $2.4-$2.5. 1 registered bidder who is very interested. Opening bid $2,300,000. No further bids buyer wont increase their bid.

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Question 1: What should the agent do PRIOR to the auction. (Discuss honesty or game)

Question 2: How to encourage a buyer to make an opening bid when they are the only ones?

Question 3: Once offer is received, what is the next step?

Question 4: Should we exercise a vendor bid? If so where? How do we communicate to buyer?

Question 5: What is my dialogue to encourage a bid beyond a vendor bid?

Question 6: What to do if buyer does not increase from original offer of $2.3M?

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Tip: Consider Vendor Bid (discuss), dialogue: nothing under x will be “considered”, anything above it will

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SCENARIO 3

Quoting $2,300,000. 4 Registered. Bidding starts at $2.2m and runs efficiently, until it stalls at $2,420,000; Reserve $2,400,000

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Question 1: Who do you speak to first? Why?

Question 2: When do you confirm the property will be sold? How? Why?

Question 3: What to say to vendor? (brief)

Question 4: How do I ask the buyer for more money? Should I?

Question 5: What if the buyer says NO! Discuss Auctionworks experience.

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Tip: Just because you have hit reserve, doesn’t mean you can’t ask for more money. Discuss Neil Jenman.

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TOP 10 MISTAKES AGENTS MAKE ON AUCTION FLOOR

1. Looking flustered and nervous at the commencement of an auction
2. Standing next to the Auctioneer for the entirety of the auction
3. Not engaging with buyers and onlookers
4. Suggesting an opening bid or increment to the Auctioneer which is too low (as advised from buyer) - teamwork is paramount
5. Exerting too much pressure onto buyers or vendors, leading to a negative experience
6. Not communicating with underbidders when an auction comes to a rest or stall
7. Speaking to a buyer when they have gained momentum and continue to bid comfortably
8. Using the words or declaring the property “On the Market”
9. Not asking for more money from the highest bidder below or above reserve price
10. Not ensuring the Vendor can wherever possible, see, hear, smell and feel the auction energy

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COMPLIANCE�CONTRACTS�LEGALITIES

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PRESENTED BY MARK MORRISON

HOW TO EXCHANGE A CONTRACT

• Do not touch anything outside the black box without written permission from vendors solicitors
• Confirm the entity next to purchaser (NOT AND OR NOMINEE)
• ALWAYS have vendor/purchaser Initial any changes
• Write 10% on front page of contract – DISCUSS
• Initial Special conditions – DISCUSS
• Always date the day of exchange
• Always witness
• Always check for execution pages inside contract

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HINTS

• Try to use the same coloured pen
• If one document is missing, purchaser may have right to rescind

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CONTRACTS

THE MOST IMPORTANT DOCUMENT IN THE TRANSACTION

• Do not rely on solicitors, it may not be your job, but it will become your problem!
• Agents must ensure they review the contract on every property they sell
• Special Conditions (check they are relevant)
• All disclosures (ensure all are attached and up to date)
• Settlement date, deposit amounts, directors guarantee’s etc
• Understand the necessary vendor disclosure documents
• Sewerage Services
• Section 149 Certificate
• Certificate of Title
• Strata Plan (if strata)
• Pool compliance Certificate
• The contract should be used as a tool to gather firm interest, create hitches. However it is important agents do not live in false hope. (Discuss good and bad agent habits)
• NEVER GIVE ADVICE ABOUT THE CONTRACT, ALWAYS REFER TO THE SOLICITORS

REDUCED DEPOSIT CLAUSE

DIRECTOR’S GUARANTEE

UNDERQUOTING LAWS

• An agent and seller can choose not to publish or make any statement about the likely selling price of the property. If you do publish or make any statements about price, they must comply with the new requirements.
• AS AN AGENT, YOU MUST:
• include your reasonable estimate of a property's likely selling price in the agency agreement
• provide evidence to the seller of how you estimated the selling price
• ensure the highest price in a price range does not exceed the lower price by more than 10 percent (for example, $500,000-$550,000)
• record in writing statements made about the price while a property is marketed (address, price, date & time)
• ensure your estimated selling price remains reasonable by:
• revising it as soon as you know (or should be aware) of evidence or circumstances that changes it
• notifying the seller of the revised price
• amending the agency agreement with the revised estimate
• take all reasonable steps as soon as is practical to update any marketing of the property with the revised estimated selling price.
• YOU MUST NOT:
• provide any price estimate less than what you have reasonably estimated that a property is worth (as recorded in the agency agreement with the seller). This applies to advertising the property or in any communication with prospective buyers about the property's likely selling price
• use any statements such as "offers above" or "offers over" an amount, or "plus" a particular price (for example, $500,000+), which could underquote or obscure a property's estimated value.

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UNDERQUOTING LAWS – FAQS?

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• How much can I deviate from my Agency Agreement?
• If I receive a “written” offer during campaign above my guide price, do I have to amend my guide price?
• Seller wants to advertise lower price than what I believe its worth, what do I say?
• What if the seller wants more than I believe its worth?

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• Answers: https://www.fairtrading.nsw.gov.au/housing-and-property/property-professionals/running-a-property-agency/underquoting

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QUESTIONS EVERY AUCTION AGENT SHOULD BE ABLE TO ANSWER:

• What forms of identification are necessary to register?

Current NSW Drivers License will suffice or a form of photo id (e.g. passport) together with institutional proof of address.

• Who is permitted to view the bidder’s register?

Agents, Auctioneer and an officer of Fair Trading. Vendors may not view the bidders register.

• What details must be provided by a person bidding on behalf of a company (single director/multi directors)?

A letter of authority must be signed by all directors authorising an individual to bid on their behalf and a copy of the companies ABN.

• What details must be provided by a person bidding on behalf of another person?

SEE NEXT PAGE

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• Does an individual operating under a general power of attorney need to identify the party they are representing?

NO, not until exchange

• Do Reserve instructions have to be signed by all stakeholders?

YES

• If a property is owned by a company, who is empowered to sign the reserve?

All company directors or company secretary

• Can a reserve be accepted in the form of a facsimile or email or text?

Yes but preferably in writing

• Can a vendor change their reserve upwards during the auctions?

Yes but not to be encouraged and auctioneer must advise

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QUESTIONS EVERY AUCTION AGENT SHOULD BE ABLE TO ANSWER (CONT…):

• If the reserve is lowered by a vendor to affect a sale, can it be accepted by the auctioneer verbally or does the written reserve need to be altered?

Depends on circumstances of the sale

• In the event of a divorce/company break up, if one stakeholder’s reserve is different to the others, which reserve should the auctioneer rely upon?

Always rely upon the higher reserve

• Can a vendor bid be placed at or above the reserve price?

No, must be one increment below otherwise we are obligated to sell

• If a vendor is not in attendance at the auction under what circumstances may the auctioneer sign the contract on their behalf?

If the written reserve is reached or if the vendor authorises the auctioneer to accept a lesser figure.

• If the written reserve price is reached and the property is knocked down but the vendor then refuses to sign the contract, can the auctioneer sign on the vendor’s behalf?

YES

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QUESTIONS EVERY AUCTION AGENT SHOULD BE ABLE TO ANSWER (CONT…):

• When is an auctioneer permitted to sign a contract on behalf of the purchaser?

When the purchaser defaults or when authorised in writing to do so

• Under what circumstances can a bidder retract a bid?

In NSW a bidder can retract their bid right up until the fall of the hammer.

• One party has negotiated certain amendments to the contract e.g. 5% deposit, extended settlement. Is the auctioneer obliged to offer those same amendments to all other bidders?

No but discuss benefits

• An auctioneer has been accepting bids from an individual. After some time the auctioneer is informed by the agent that the individual making the bids, for one reason or another, is not capable of settling the transaction. Can the auctioneer refuse further bids from the individual or must the bidding be reopened at the figure the individual commenced bidding?

FOR DISCUSSION

• A vendor agrees to an amendment from a purchaser; their solicitor is unavailable. Can an auctioneer/agent insert a handwritten clause in the special conditions?

NO

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QUESTIONS EVERY AUCTION AGENT SHOULD BE ABLE TO ANSWER (CONT…):

• What constitutes an exchange?

Exchange requires a purchaser and vendors signature upon a contract together with a form of cash consideration from the purchaser

• If the vendor agrees to a reduced deposit can they expect the balance of the 10% in the event the purchaser defaults?

NOT NECASSARILY

• A court order stipulates a property must be sold at auction and the auctioneer or agent must set the reserve. What should the auctioneer rely upon to set the reserve and can they refuse the direction if they believe they are not in position to comply?

FOR DISCUSSION

• Does the expression “on the market” have any legal ramifications?

No but it will if we continue to use it

• What can constitute collusive practices by a bidder?

Where a bidder intentionally attempts to disrupt an auction or unreasonably influence another bidder.

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QUESTIONS EVERY AUCTION AGENT SHOULD BE ABLE TO ANSWER (CONT…):