ROLE PLAY SUMMARY
Conduct Auction (CPPDSM4004A)
Name
Student ID
Date
Assessor
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ROLE PLAY OBJECTIVE
Auctioneers conduct public sales, usually on the site of the property. Auctioneers are required
to explain the contract and the property’s features and answer any questions from potential
purchasers before calling for bids.
Strict guidelines govern the conduct of auctions. In most cases, a person must not conduct, or
attempt to conduct, an auction for the sale of any real estate or business unless that person:
 is a licensed real estate agent; or
 is employed as an agent’s representative.
An auctioneer’s public performance reflects upon the image of the agency and the profession.
A good auctioneer can also increase the profile of the agency enormously.
A publicly advertised auction must be conducted according to the requirements of the Sale of
Land Act 1962 and the Sale of Land Regulations 2005.
In this role play, the student is required to:
1. Conduct an auction in line with agency practice, ethical standards and legislative
requirements
2. Demonstrate knowledge of ethical standards, legislative and regulatory requirements
and agency practices associated with the conduct of auctions
3. Demonstrate knowledge of the auction process
4. Use effective communication and presentation techniques in conducting the auction.
INSTRUCTIONS TO THE STUDENT
1. Please navigate this document using the ARROW Keys or TAB Key.
2. You can type only in designated fields.
3. Use this Role Play Summary Template to develop your role play summary. Type your script in the
space for “Develop your script here:”
4. You can use the SPACE BAR to mark the check box  in the extreme right column for items that you
have covered in your script.
5. Submit the completed role play summary by email to [email protected]
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ROLE PLAY SUMMARY
Conduct Auction (CPPDSM4004A)
SCENARIO
You are a representative of the Raynor Shine Real Estate Agency. Peter and Mandy Sellers are a nice
young couple who have engaged your services to take their home to auction. Their expectation price
is just over $600,000. A pre-marketing analysis showed that a price of around $560,000 was the most
likely outcome.
The home is an attractive Victorian-era property. Interest in the home has been solid but not
spectacular as the market has begun to significantly cool. Due to general economic conditions, buyers
have begun to withdraw and become uncertain about the immediate future of the property market.
Seventeen inspections in about two weeks threw up three interested parties. Buyers’ opinion on price
ranged from $530,000 to $560,000 with an average price opinion of $544,000.
The Sellers have set their reserve at $590,000.
Prepare an auction speech for a property of your choice, including the prescribed announcements and
property details using the provided role play template. You may provide suitable fictitious details of
the property.
Your assessor will manage the bidding (by all three interested parties) for the property during your
presentation.
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WELCOME AND INTRODUCTION
 Ring the auction bell to attract everyone's attention.
 Welcome everyone to the auction and introduce agency staff.
 Show positive energy and be in control.
Develop your script here:
AUCTION ANNOUNCEMENTS
 Make a reference to the applicable Schedule 1, 2, 3 or 4 to the Sale of Land Regulations
2005 (which must be displayed for at least 30 minutes before the auction commences)
that applies to this auction.
 Make mandatory General and Specific announcements:
 auction will be conducted according to the rules and any additional conditions
displayed before the auction starts.
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ROLE PLAY SUMMARY
Conduct Auction (CPPDSM4004A)
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 auction rules prohibit late bids.
 bidders will be identified on request.
 law prohibits and imposes fines for:
 false bids
 major disruptions by bidders
 bidders attempting to prevent others from bidding.
 law prohibits the making of vendor bids other than by the auctioneer (if
applicable)
 auction rules do not permit vendor bids (if applicable)
 law allows co-owners to bid, and how many co-owners will be bidding (if
applicable)
 Read part(s) of property and contract details:
 Property address
 Title information (Volume and Folio)
 Chattels
 Vendor’s Statement
 Zoning
 information about leases (if any)
 approximate outgoings
 measurements of the land
 Terms and Conditions
 Other relevant details (e.g. special conditions, selling on behalf of a mortgagee)
 Explain that the auctioneer has the right to resolve any disputes between bidders.
 Explain that (if applicable) if the auctioneer makes a vendor’s bid, he/she will state the
specific words 'vendor's bid' at the time of the actual bid.
 Explain that the auctioneer has the right to resolve any disputes between bidders.
 Explain that (if applicable) if the auctioneer makes a vendor’s bid, he/she will state the
specific words 'vendor's bid' at the time of the actual bid.
Develop your script here:
QUESTIONS
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 Call for questions
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 Respond to questions (ensure the questions are answered clearly, honestly and politely
— and where answers are not known, clearly state that the answer is not known)
Develop your script here:
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ROLE PLAY SUMMARY
Conduct Auction (CPPDSM4004A)
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PROPERTY SELL
 Talk briefly about the property, highlighting the main benefits.
Develop your script here:
BIDDING
 Call for a first bid and indicate what the bidding advances (or rises) will be.
 Control the bidding process calling out in a loud, clear voice the bid you have at the
moment and the advance (rise) that they are looking for.
 If a person at the auction asks who made the bid, identify that bidder before taking any
more bids.
 Use 'filler words' to break up the bidding chant. E.g. 'I am looking for ...', Who will give
me $...', 'Think of the opportunity'.
 Make vendor bids, if necessary.
 If previous bidding has reached the original reserve or a new reserve has been
confirmed, state that the property will be sold. If the reserve has not been met, state
to the bidders that the property is not yet on the market.
Develop your script here:
KNOCK DOWN OR PASS IN
 If the property will be sold:
 After the final bid, clearly nominate the highest bidder and have that person
confirm the bid.
 Call the bid three times.
 Either 'knock down' with a hammer or clap a hand on the contract to signify
that the auction has ended.
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 If the property is passed in:
 When all bidding has ceased, call the bid three times and then inform the
bidders that they have not yet reached the reserve.
 Explain to the bidders that they have a final opportunity to bid before the
property is passed in.
 Explain the rules for the 'first right of refusal':
 Clause 8 of the prescribed auction rules, regardless of the version of
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ROLE PLAY SUMMARY
Conduct Auction (CPPDSM4004A)
the rules (Schedule 1, 2, 3 or 4), gives the highest bidder the
opportunity to negotiate with the vendor.
 the specific price that will give the first right, for example, the reserve
price.
 the length of time allowed for the negotiation.
Develop your script here:
CLOSING REMARKS
 Thank audience for attending and congratulate purchaser.
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 If the property is sold, congratulate the purchaser.
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 If the property is passed in, invite the highest bidder to remain to negotiate with the
vendor.
Develop your script here:
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