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Yes, that's correct, if you're the highest bidder and the property gets passed in you have first right of negotiation. One property I bought I was the only bidder and thus did not reach reserve, after auction the agent and I negotiated and came up with a price (and conditions) that were...

A) Make sure you get this agreed to prior to the auction. B) not in Victoria, just rock up and bid - sometimes this is better anyway as you do not show your intent early. You may be the only one bidding. C) I have used personal cheques before, twice. D) I think that covers it, I wouldn't...