Rejected offers & advertised prices

I was catching up on some reading this morning, including the last issue of the Estate Agent magazine published by the REIV. One particular article caught my attention (on page ten, for those playing at home).

Anthony Leggiero of Maddocks Lawyers penned an article about what constitutes an offer. In particular, in reference to Guideline 7 from Consumer Affairs Victoria's (CAV) Guidelines for real estate sales people.

It states that "advertising, marketing and advice must be updated for any genuine offers on price which are rejected by a vendor during a sales campaign".

A qualifying offer is one that meets the vendors' requirements from a terms point of view, but falls short in dollar terms, and where the purchaser has a reasonable expectation of being bound to the offer should it be accepted by the vendor in its existing format (for example, written and signed on the REIV offer template).

I've lost count of how many times I've had an agent tell me that the vendor has already knocked back an offer at a certain price. It's a shame that CAV is effectively toothless in most cases, but I might have some fun with this one over the weekend :D
I was at an auction yesterday where there were 3 prospective buyers, all of whom had put in offers of $500k during the week.

Auctioneer started the bidding at $480k not one person bid. The property was passed in, with a reserve of $510k

Not sure what will happen now. I will watch with interest