Going once, going twice… what happens when you don’t hear that magic word ‘sold’ when your home goes under the hammer? Whilst most property sellers are successful at auction, a small handful will have to resort to Plan B.
There are two ways a property can be passed in:
Passed in on a genuine bid – this occurs when the highest bid is below the vendor’s reserve price. This is an ideal situation for the bidder as it gives them the opportunity to exclusively negotiate a figure with the vendor. If an agreement cannot be reached, the underbidders are invited to make an offer.
Passed in on a vendor bid – this occurs when no-one makes a bid for the property during the course of the auction. In this instance, the sales agent is at liberty to negotiate with multiple buyers. This can work in the vendor’s favour with multiple offers potentially driving up the price.