Bulleen <\/a>in Melbourne\u2019s inner east is now a nationally recognised leader in commercial property auctioneering and enjoys an exciting career as Specialist Independent Auctioneer for The Auction Company, a business he started in 2017.<\/p>\nIt was during his \u2018apprenticeship\u2019 with global commercial property giants CBRE that colleagues encouraged him to try auctioneering.<\/p>\n
The perception that all auctioneers are gregarious and confident is not necessarily true, even if he himself is both.<\/p>\n
\u201cI suspect my colleagues recognised my enthusiasm for performing in front of a crowd, along with my outgoing nature,\u201d he said.<\/p>\n
\u201cBut not all auctioneers are cut from the same cloth; they come in all shapes and sizes, and there\u2019s space for everyone.<\/p>\n
\u201cI learned early on that being an auctioneer requires you to find your own character and style while paying close attention to the key fundamentals.\u201d<\/p>\n
Whether orchestrating residential or commercial auctions, Mr Tzamalis said the auctioneer needed to speak the buyers\u2019 language, focusing on the motivations for the purchase and understanding the detail of the asset being sold.<\/p>\n
But there were also differences.<\/p>\n
\u201cIn residential, the key notes are usually cosmetic, like style, decoration, improvements and location, and the buyer is often emotionally invested in the transaction, particularly if they plan to occupy the home,\u201d he said.<\/p>\n
\u201cIn commercial you\u2019re dealing with a different level of asset and buyer.<\/p>\n
\u201cCommercial property is called that for a reason; it\u2019s commercial, and it usually boils down to the numbers around things like rental yield, land rate, development restrictions, and other variables that all need to stack up in order to seal the deal.\u201d<\/p>\n
Tactics and trust<\/strong><\/p>\nAlthough there is not a lot of equipment beyond the obligatory gavel, auctioneering comes with its own jargon, methodologies, and secrets.<\/p>\n
![\"Auctioneer](\"https:\/\/www.apimagazine.com.au\/media\/1001729\/paul-at-auction-inside-pic.jpg\")
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Auctioneers will frequently speak rapidly, a rhythmic monotone intended to lull onlookers into a conditioned pattern of call and response, known in the trade as auction chant.<\/p>\n
Anchoring is any aspect of any auction, whereby an initial price expectation is set as a sort of anchor point before bidding begins at lower levels. A publicly known reserve also acts like a typical anchor, influencing potential bidders to value the good at or above the reserve price.<\/p>\n
\u201cOf course, there are techniques we use to drive an auction forward, but ultimately, all we\u2019re doing is facilitating a transaction between two parties, both of which have a price in mind, and we need to help them meet in the middle and in order do that, they have to trust us,\u201d Mr Tzamalis said.<\/p>\n
\u201cTrust is a critical part of an auctioneer\u2019s role.<\/p>\n
\u201cWe have to build deep trust with our agent and their vendor because ultimately they\u2019re making a significant decision to sell, and our advice throughout the sales campaign and on auction day can be critical to influencing their tactical decisions.<\/p>\n
\u201cThen, it\u2019s our role to stand up in front of a crowd of people we probably don\u2019t know, and convince them to trust us, and the process.<\/p>\n
Can\u2019t sing, can talk<\/strong><\/p>\nMr Tzamalis said good auctioneering boiled down to the fundamentals \u2013 knowing the property, knowing the buyer, understanding the legalities, having the experience to handle unexpected circumstances, then stringing it all together to keep the auction ticking to achieve the best possible outcome for the vendor.<\/p>\n
This approach has culminated in the coveted Senior Auctioneer of the Year.<\/p>\n
Judged by a panel of four award points across the key areas of assessment, including initiation of proceedings, standard of dress, clarity and manner of delivery, description of property, handling of bidding, and calculation of bids.<\/p>\n
\u201cOutside of that, the style and flare of the individual is what\u2019s unique and where each auctioneer can share their personality and bring their own style to the craft.<\/p>\n
\u201cThis is what I love in particular, as it gives me the opportunity to perform before a crowd, which is what I love to do.<\/p>\n
\u201cI can\u2019t sing, so auctioneering was a great option for me.\u201d<\/p>\n
Victorian commercial and careers<\/strong><\/p>\nElevated residential values \u2013 Melbourne\u2019s house prices were up 12.5 per cent year-on-year as of the start of March \u2013 and changes to Victoria\u2019s residential rental laws are pushing some would-be owners to look at alternatives.<\/p>\n
Contrary to the doom and gloom around work-from-home adversely hitting office markets, the Property Council of Australia\u2019s latest Office Market Report revealed Melbourne posted the second strongest demand for CBD office space, just behind Perth.<\/p>\n
\u201cWe\u2019ve heard a lot of speculation around the future viability of office buildings but I don\u2019t agree that this is going to be a major issue, because the way we choose to use office buildings will change.<\/p>\n
\u201cI suspect we\u2019ll see an increase in co-working setups, which means the available office space will still be tenanted, it\u2019ll just be used differently, which is a good thing.<\/p>\n
\u201cNaturally, for the CBD, office workers returning will spur sectors like hospitality and retail, which have been largely dormant for the last two years.\u201d<\/p>\n
There are other sections within the commercial sector that are booming, Mr Tzamalis said.<\/p>\n
\u201cThe industrial sector has seen unprecedented demand, with COVID being a key driver as investors look for long term security.<\/p>\n
\u201cChildcare and medical have also been benefactors of this shift, given they\u2019re critical infrastructure to the day-to-day operations of communities.<\/p>\n
\u201cLarge format retail such as appliance stores and supermarkets have also prospered, for the same reasons.\u201d<\/p>\n
And for any office, retail or hospitality worker looking for a career change, would he recommend auctioneering?<\/p>\n
\u201cDemand for independent auctioneering services like ours is on the increase, and there will be opportunities for people who are either entering the industry at the beginning of their careers, or undergoing a career transition, to get involved and make a career out of auctioneering.<\/p>\n
\u201cI would thoroughly recommend it as a career to anyone, and especially to people who love to perform in front of a crowd.<\/p>\n
\u201cIn my experience actors, radio presenters, journalists, sportspeople, and all sorts of other performers can make excellent auctioneers, once they understand the fundamentals of facilitating a transaction.\u201d<\/p>\n<\/p><\/div>\n