The top 5 Auction terms worth knowing

Bidding at auction is not everyone's cup of tea. Emotions run high and the pace is fast. Keen buyers are playing against sophisticated tactics to drive up the price.

If you're considering buying property at auction this Spring, here are the top 5 auction terms you should be across:

  1. Reserve price
    This is the seller's minimum sale price.  In some cases, this may be recorded on the authority to sell.
  2. Vendor bid
    A bid made on behalf of the seller which is usually to increase the bidding price.  A vendor bid can only be made by the auctioneer when the auction rules allow it.  The auctioneer must state this before bidding starts and announces each vendor bid as it's being made, or just before it's made.
  3. Passed in
    Where a property does not reach the vendor's reserve price, the property is passed and offered for private sale.  The highest bidder usually reserves the first right to buy the property at the vendor's asking (reserve) price or at an agreed price by the vendor.
  4. On the market
    The point in an auction where a price is reached at or above the reserve price means the property is on the market.  The auctioneer would usually declare this point.
  5. Co-Owner bid
    A type of bid made by a seller who is the co-owner of the property, or by a person (other than the auctioneer) on behalf of a seller who is a co-owner of the property.  A bid made by on or behalf of a co-owner is made with the intention of buying the property.

Auctions are all about knowing when to keep pushing and when to bow out. This is where many get carried away to later regret what they paid.

If you feel that auctions aren't for you, and you want the very best chance to secure your desired property, engaging a professional is an intelligent move.

We offer master negotiation services to help you secure the property at a favourable price and terms - as we attend the auction/s to bid on your behalf.

If we can help you buy your next property led by strategy and success, please contact us and find out why we're your secret weapon when it comes to your next property move.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

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