Bidding at Auction to Buy
Does it not make sense to bid during the auction to indicate your interest in the property?
Yes, if you are interested and want to buy the property you do need to let the Auctioneer know you are in the market.
Once the property has been declared “on the market” the highest bidder will be the winner of the auction unless somebody else calls out a higher bid before the auctioneer calls “sold”.
However, if the bidding does not reach the vendor’s reserve price, the property will be “passed in” then the Auctioneer will deal with the highest bidder who now has the right so as to be “in the driver’s seat”.
The highest bidder will be offered the property at the vendor’s reserve price, negotiations will then begin.
Meanwhile if you have been standing there waiting for the Auctioneer to call out “on the market”, and play hard to get you will miss out.
Lately most properties do not get the chance to be “on the market” during the Auction, but after it has been “passed in” it will then be sold to the highest bidder after many negotiations with the Vendor.
In fact your participation is crucial now if you want to buy the property, the Auctioneer will not deal with you if did not bid, showing your interest during the auction. You have now lost the opportunity to negotiate. The Auctioneer has total discretion to sell to someone else without referring to you at all.
Auctioneers cannot read your mind so speak up!
Posted: Saturday, 27th June 2009 at 3:54 pm
One Response to “
Bidding at Auction to Buy ”
Join the conversation
Conversation Rules:
What do think? Agree, disagree, aren't sure about something? Being critical is fine, but we'll delete your entry if it's rude. Please do not put your URL in the conversation text and please use your PERSONAL name or initials and not your business name, as the latter turns out as spam. Have fun and remember to add to the conversation!
How times can change, quite quickly in fact, with over 80% of properties clearing at auctions each weekend at the moment in Melbourne. The same can and will happen in your capital city.