Sold to lower bidder at auction -- HELP please

MeInvest

Welcome to the site and good luck with the investing but more importantly good luck with the baby.

There is some justification to your conundrum but firstly what was your highest offer at the Auction and generally the REA will try to seal the deal within the next hour, how did get to the next day

Jezza
 
MelInvest

Perhaps the lower bidder can have a shorter settlement date? 1k doesnt make a lot of difference afterall, especially if you have to divide by 3.
 
MeInvest

Welcome to the site and good luck with the investing but more importantly good luck with the baby.

There is some justification to your conundrum but firstly what was your highest offer at the Auction and generally the REA will try to seal the deal within the next hour, how did get to the next day

Jezza
Hi Jezza,
Thanks for the wishes. My offer was $342K, same as the vendor bid. Yes usually the REA tries to finish the negotiations within an hour but he said to consider my offer of $342K he would need to speak to vendor (his partner) and get back to me next morning. If the vendor agreed he would call me and let me know ELSE the house would be on the market again for $360L asking.
Obviously he didnt call and called a lower bidder instead assuming she was the highest bidder (strange but true).
I'm not suer if the vendor even knows she missed on a higher offer because of REA's supposedly "calling error".

@sleepy929....The settlement was 30-60 days which we all knew b4 the auction and we agreed to. Maybe it was just not my day.....I'll keep the hunt on!!
 
Hi MeInvest,

Welcome to Somersoft. A couple of thoughts below...

My offer was $342K, same as the vendor bid.

As already suggested, then why didn't you bid $342,500 at auction and outbid the vendor? You were not the highest bidder at auction but you could have been if you were more aggressive.

Obviously he didnt call and called a lower bidder instead assuming she was the highest bidder (strange but true).

This is the tough bit. To be honest, I don't think it was a mistake at all. You keep saying you think it was, but I don't. I genuinely believe they sent you home with false promises of calling in the morning when they fully intended never to sell you the property. REAs are not stupid. They then rang the under-bidder they wanted to sell it to and did a deal. Next day comes and they make up a lame excuse for you.

I can't say why they didn't want to sell it to you, but a host of conspiracy theories and prejudices come to mind. But the truth as I see it is that they didn't and therefore took the business elsewhere.

Sorry, and I hope you find a great deal in the near future.

Regards,
Michael
 
Hi MeInvest,

Welcome to Somersoft. A couple of thoughts below...



As already suggested, then why didn't you bid $342,500 at auction and outbid the vendor? You were not the highest bidder at auction but you could have been if you were more aggressive.



This is the tough bit. To be honest, I don't think it was a mistake at all. You keep saying you think it was, but I don't. I genuinely believe they sent you home with false promises of calling in the morning when they fully intended never to sell you the property. REAs are not stupid. They then rang the under-bidder they wanted to sell it to and did a deal. Next day comes and they make up a lame excuse for you.

I can't say why they didn't want to sell it to you, but a host of conspiracy theories and prejudices come to mind. But the truth as I see it is that they didn't and therefore took the business elsewhere.

Sorry, and I hope you find a great deal in the near future.

Regards,
Michael
Hi Michael,

Thanks for your reply and insight. I agree I should have tried to close the deal that night itself. I think I was just venting my frustration out here on SS instead of analysing the situation and moving on.
Anyway, I have learned from this mistake and I'm simply grateful to SS members for their time, advice, criticism.
Definitely missed a good opportunity but I accept I'm to be blamed for it to a certain extent.

Thanks to all those SS members who replied and hopefully you will hear a lot more from me on SS :) (no....not wheinging but with some smilies :)

Thanks
 
Thanks to all those SS members who replied and hopefully you will hear a lot more from me on SS :) (no....not wheinging but with some smilies :)
That's OK, we all have our share of "bad days" and challenges in this game. Welcome to SS. :)

We'll look forward to hearing how you found an even better deal, with development potential or something that you hadn't even counted on getting. :cool:
 
Contact the REIV or VCAT, file a complaint & keep them honest, that kind of behaviour is the worst.
Thanks....I did have a word with my solicitor but he said if I was the highest bidder without the vendor bid I could have had the exclusive right to negotiate. But alas that wasnt the case so legally I cant chanllenge the REA for what he has done(remember he is 1/3 owner fo the property as well).

BTW....there were some comments on this thread that why I didn't outbid the vendor bid by $500. My understanding till now is if I had done that the auctioneer would outbid me again by some amount to have the power of negoatitation with him.

My question is can there be more than ONE vendor bid from the auctioneer? I just read in some other thread that it's illegal....Just want to know as I may be better prepared for the next auction if the opportunity arises.
 
Thanks....I did have a word with my solicitor but he said if I was the highest bidder without the vendor bid I could have had the exclusive right to negotiate. But alas that wasnt the case so legally I cant chanllenge the REA for what he has done(remember he is 1/3 owner fo the property as well).
I suspect you're doing this anyway, but just in case ;): forget it and move on. What's the point of going after them? You won't be able to get specific performance (ie force them to sell to you, instead), and you probably won't get damages, either.

Your energy's best spent looking for another property. :)
 
My question is can there be more than ONE vendor bid from the auctioneer?

I think it is time they cleaned up their auction act in Victoria. I believe (happy to stand corrected) that there is no limit to the number of vendor bids that the auctioneer can make....gee you don't even have to register to bid.

In NSW the auctioneer can make only ONE vendor bid and if he does make one, he has to announce that it is a vendor bid.....and all bidders have to register.
 
I think it is time they cleaned up their auction act in Victoria. I believe (happy to stand corrected) that there is no limit to the number of vendor bids that the auctioneer can make....gee you don't even have to register to bid.

In NSW the auctioneer can make only ONE vendor bid and if he does make one, he has to announce that it is a vendor bid.....and all bidders have to register.
Thanks for the info Propertunity.
 
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