Many potential sellers have preconceived notions of how property auctions are run. Before the hammer drops, many imagine a scene of organized chaos that includes auctioneers rattling off bids at tongue-twisting speeds and bidders competitively waving in their offers. While that description may be par the course for some auctions, many don’t realize the legal guidelines auctions must adhere to.
Before auction day, a marketing campaign is ran and price expectations are set by the agent and vendor. This reserve price is what kicks off the auction on auction day. On the big day, the auctioneer must follow strict rules, which vary from state to state, about how auctions are run. For instance, it is against the law to make a false bid, hinder another bidder or in any way intentionally disrupt an auction in Victoria. Once the reserve price has been met, the property is sold to the highest bidder. If the bidding does not reach the reserve, the property is passed in. I explain the auction process further and talk more about what sellers need to know in an article with realestate.com.au. Read it here.