It’s a paradox that the most important decisions of our lives are made in the heat of the moment. Yet one man who really lives and breathes the emotion of inner-city exchanges is Gavin Croft, of BresicWhitney Auctions. This month Gavin explains his path to becoming an auctioneer, from cutting his teeth in Queensland to how he became the NSW auctioneer of the year.

Some of you might have wondered how property auctions rival other asset categories. For example the auction of racehorses, fine wine or art. We can all easily picture a stately room full of art and chandeliers, with civilised, seated bidders inching up the sale of a work after a glass of Champagne.

But as we leap into the 21st century it is curious to find that art and property auctions are starting to hold greater resemblance. This is because contemporary art auctions are built on strong branding.

Image courtesy of NewsoftheArtworld.com

At Christies and Sotheby’s, auctioneers are often portrayed as rock stars. Fine art sellers wanting the ‘best money can buy’ will stipulate a specific auctioneer’s services to sell. The art auctioneer’s role is multi-fold.  To drive up the bidding, to be persuasive – to keep a restless audience engaged over the course of many lots and to really use their persona as part of the psychology of the auction room.

Image courtesy of Art Media Agency

Interestingly art auctioneers almost never mention key attributes of the work they are selling. Unlike property sales, art auctioneers feel no need to remind collectors of its value and quality. They’re of the belief that further comment would cast doubt on what has been written in glossy marketing collateral.

On the flip-side, real estate auctioneers go into extraordinary oratory detail on the property. Sometimes to the point where the crowds tune out. I think in general, this spiel about the property is done more to impress the sellers than the buyers. The buyers know why they are there!

The other major similarity between art and property is the inclusion of phone bids. At art auctions however, about 1 in 3 buyers bid on the phone, but with property on average 1 in 10 bid by phone.

Whilst both art and real estate auctions have elements of transparency – for example the number of people bidding in the room, the final sale price and the auctioneers performance – from here, the art and the property industry diverge.

The real estate industry has worked for 10 years to ensure a very a high level transparency. By contrast in the art auction arena, everything is opaque; who is actually bidding, how estimates and the reserve are set, who owns the art piece and thus who has a financial interest in the outcome. There are many mysteries in the art world that auction houses work hard to protect.

But in this respect property auctions are beginning to take their lead from art auctioneer by moving to a focus on the overall buyer experience.

In recent years, we have moved to hosting “in room” auctions at our Darlinghurst office, which creates a more corporate setting for the auction to take place. Indeed properties selling from $550,000 to $5.5mil have seen an improved buyer experience as we bring them into our “in room” auction nights.

“In room” auctions are starting to perform incredibly well. This is because clients and their agents are starting to recognise the disconnect between selling a $2 million dollar asset on a street, with cars and trucks going by. Without noisy and random distractions the auction experience is improved for the bidder.

In terms of branding and experience, holding an auction in the calm Darlinghurst office also make sense. Here in the quiet setting of after hours, in a room surrounded by art, thoughtful interior design and comfortable seating, people can focus much better. And this goes back to what the art world has long understood so well.

Auctions are about the property, but they are also about branding and positioning. The atmosphere you create and in turn the kind of buyer you attract.

But what we love about real estate auctions we don’t want to change in a hurry. Consumer protection, complete transparency and a lively quick process in which there is just one item for sale. What we want a little more of are all the things we do like about art auctions – the refined atmosphere, a focus on excellent customer service and strong, reputation-based branding. A consistent and high quality auction every time gets the best possible results.