auction techniques

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From: Phillip Monk


Hi all,

We're looking at bidding for a house which would become our PPOR, and renting out our existing PPOR.

I've got a few questions about auctions that don't seem to have been definitively answered in the archives.

1. Is the auctioneer, if asked, required to confirm or deny whether a bid was a vendor bid?

2. Is the auctioneer required to state, if asked, who made the previous bid (in case of dummy bidding etc)?

3. Is the auctioneer required to state when the price has reached its reserve?

4. If a property is passed in under reserve, does the highest bidder have any special rights to negotiate with the vendor, or could anyone make an offer at that stage?

The auction is taking place in SA.

Any information would be much appreciated!

Thanks,
Phil.
 
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Reply: 1
From: Asy .


Hi Phillip,

I can answer for Victorian Law, and I would imagine it is very similar there, perhaps some of the Adelaideans (MB, BR, Sim, Dunc, etc) will add to the thread.

1. Is the auctioneer, if asked, required to confirm or deny whether a bid was a vendor bid?

Yes, but you will usually get further if you ask "Who made that bid" rather than "Was that a vendor bid".

2. Is the auctioneer required to state, if asked, who made the previous bid (in case of dummy bidding etc)?

yes, see above.

3. Is the auctioneer required to state when the price has reached its reserve?

No, but vendor bids are not allowed above this amount. This can be difficult to ascertain, however, they must answer truthfully when you ask "Has the property reached it's reserve, and is it on the market". If they say yes to this, they can't pass the property in, they must knock it down to the highest bidder.

4. If a property is passed in under reserve, does the highest bidder have any special rights to negotiate with the vendor, or could anyone make an offer at that stage?

Usually the highest bidder has first right of negotiation, but this is not legislative, it's just auction practice/ettiquite.

Hope that helps a little...

asy


"Don't forget what happened to the guy who suddenly got everything he ever wanted...
He lived happily ever after.
(Willy Wonka).
 
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Reply: 2
From: Manny B


Hi Phillip,

I am no expert in this area, but I would think the following (I'm in Melb though):
1. If you ask if the last bid is a vendor BID, the Auctioneer must say so... (normally in more recent auctions I have been to, the agent sais it is a Vendor Bid)

2. I have asked who the last bidder is & yes, the agent did point out to me the last bidder (as I thought I was bidding against a tree)

3. I don't know if the agent has to state if the property reaches the reserve, but they normally do so... I tend to ask as the auction is going along if the reserve has been reached (may be worth asking)

4. If a property is passed in under reserve, the highest bidder gets the first chance to negotiate a price. If the price isn't met, then the property is on the market & you can make an offer of your own (even if you weren't the highest bidder) & it can either be accepted or rejected by the vendor...

Cheers,

Manny.
 
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Reply: 2.1
From: Boyler Room


Phil,

Have you considered joining freestylers??

Check out the website at http://www.freestyler.net.au

We've got a meeting tonight at Guide House at 7.30pm. Check out the ADL Freestylers post in Meeting Point.

Boyler Room
Co Ordinator for ADL Freestylers
 
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Reply: 2.1.1
From: Phillip Monk


Asy & Manny,

thanks for the tips.

Boyler Room,

Thanks for the invite. Might have to pass this time due to the late notice, but I'll try to come to the next meeting.

Thanks again,
Phil.
 
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