There’s a few options here.
Once bidding comes to a standstill, the agent will update the vendor on the auction progress and will then get the vendors instructions on how to proceed.
If the vendor wants to sell, they can lower their reserve to the highest bid amount.
If the vendor chooses to lower the reserve to the highest bid amount, the auctioneer will disclose to the crowd that the property is now on the market and will be sold to the highest bidder.
The advantage here is that, not only will the property be sold but, any potential bidders that were waiting for the property to be passed in will now need to put in a bid or few to try and secure the property or risk losing their chance.
This can also help to breathe new life into the auction, meaning that the property could sell for a lot more than it originally would have sold for had it passed in due to any now present competition having to fight it out to buy the property.
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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.
