What is a Vendor Bid at Auction and how does it work?
It's important to understand what a vendor bid is if you plan to purchase a property on auction day. When the auctioneer places a bid on behalf of a seller, this is referred to as a vendor bid. The agent may make multiple bids on the vendor's behalf using the vendor bid.
The Auction
When you attend a Lands Real Estate auction, the auctioneer will announce a vendor bid known loudly and clearly so that everyone in the audience is aware of it. In order to bring the bid price up to the vendor's reserve price, the auctioneer may place vendor bids again following public bidding. The auctioneer may pause the bidding and refer to the vendor if there are no further offers following the vendor's initial bid. The vendor will then be asked for instructions, and the auctioneer will talk about how the sale is going. The agent will then call for additional bids and inform the crowd that the current bid price is extremely close to the reserve price at which the property will be listed for sale.
What if the bidding doesn’t meet the reserve price?
The property will be handed in with a reserve price if the auction doesn't reach the vendor's reserve price. In order to sell the property at hand, the seller will offer the highest bidder the first opportunity to negotiate with them.
What about cooling-off periods when buying at Auction?
One of the most common ways to sell a home is through an auction campaign, but there is one important detail to understand before you start placing bids. You must adhere to the auction restrictions when participating in an auction, and you won't have a chance to cool off.
Before Auction day you should always remember to:
- Have your finance approved
- Request a longer settlement period if you need to sell your current home
- Have a minimum of 10% deposit available to pay of you are the successful bidder
If you require more advice for Auction day, get in touch with our team at Lands Real Estate. We are more than happy to assist you with your enquiries.