LOOKING AT REAL ESTATE

Press, 18 October 1978, Page 6

LOOKING AT REAL ESTATE

By the Real Estate Institute

A city shopper paused at the sight of a large red flag and the sound of a bell being rung and asked what the bellringer was protesting about. The person to whom he addressed the question happened to be a real estate agent, who was able to explain that there was no protest involved — it was merely the carrying out of one of the old traditional customs associated with the auction of property.

The flag in fact carried on it, in large white lettering, the word “auction.” The display of the flag and the ringing of the bell denoted the start of an auction but these days it is not compulsory for this to be done.

However, many real estate auctioneers still believe that their work should have its own insignia and significant atmosphere. The custom of showing a red flag at a property auction dates back to the Roman times.

After a soldier was killed in battle a red flag was raised above his effects and they were subsequently sold to the highest bidder.

The significance of the bell is its origin in the days of town criers. The sale of real estate by auction has been increasing over the years from mortgagee sales and from a desire by vendors to' reach the real value of their properties. Some vendors believe that the true value is better determined by placing the property before a group of potential buyers assembled for the purpose of making bids. Sometimes the good result surprises both the vendor and the auctioneer; on other occasions the price does not reach the reserve and the offering is passed in to be sold later by private treaty. Any type of real estate may be sold by auction but those going under the hammer are frequently

large homes in select areas. Others who often use j sales by auction are ; trustees of an estate sell- i ing to wind up affairs. For property sold by auction the agent’s commission follows the scale of charges for sale by private treaty. Sole selling rights are granted by the vendor from the date that auction instructions are given until one month after the date of the auction. The vendor will pay the gross cost of advertising ) the auction and flagging j the site as agreed between j auctioneer and vendor. When a property is offered at auction and not sold, or the auction is not proceeded with, a small fee is charged under the Real Estate Institute scale of charges.