In the days leading up to the auction or even on auction day itself, you would usually meet or chat with the agent to discuss and review what’s happened through the course of the campaign, current market conditions, buyer motivation and what’s most likely to happen on auction day from the lead up to that point.
Once everything has been reviewed, you will firstly agree on where the reserve price will be set.
The reserve is the bottom line price you will accept for your property.
Once the auction meets or exceeds the reserve, the auctioneer will announce to the crowd that your property is now on the market and will be sold to the highest bidder.
Once the reserve price has been set, you will then select your vendor bid.
In NSW, the vendor is allowed to make only one bid during the course of the auction which is made on behalf of the vendor by the auctioneer.
It’s also important to note that the auctioneer must disclose when a vendor bid has been made.
The purpose of a vendor bid is to stimulate the auction by letting active and potential bidders know that the auction bidding price is not where it needs to be for the property to be sold.
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This information is of a general nature only and does not take into account your objectives, financial situation or needs. We are not financial, legal or tax advisers. You should seek appropriate professional advice specific to you before acting on this information.
