House Auction Put Back on The Market

Lravonda on 20/03/2016 - 20:17

Hi all,

So I went to a house auction the other day and the successful bidder won the house at $900k. Real estate agent went to have lengthy discussion with the vendor and had another short discussion with the bidder. Then came back and said the house is back on the market, now with a reserve price of $900k. And people who didn't bid in the first place all started to bid for some reason. The price went to $940k in the end.

Is this sort of thing normal? I thought if they want to put the property back on the market, the auction will happen another day. But people just started bidding again when they didn't want to before that? Seems dodgy to me. What do Ozbargainers think?

P/s: this happened in SA.

Home & Garden

Comments

  • [Deactivated] on 20/03/2016 - 20:28

    Did the hammer definitely fall at $900k?

    If so, calling another quasi-auction immediately afterwards is illegal. Further, calling a reserve price after the hammer has fallen and the auction has ended isn't ethical nor lawful.

    To be honest, this sounds like dummy bidding to inflate the auction bids…

    • ravonda on 20/03/2016 - 21:14

      The last bid was at $900k. The auctioneer said he needs to discuss it with the vendor.

      • [Deactivated] on 20/03/2016 - 21:16
        +6

        Ahhh, that explains it then! In that case the auction hadn't concluded yet, and what you've described there makes perfect sense. As the highest bidder at the time had been established, the auctioneer would always have a chat with the highest bidder and the vendor at the time. That is perfectly legal.

  • [Deactivated] on 20/03/2016 - 20:31
    +6

    This is normal, they didn't win, it just meant that they were the highest bidder. This happens at pretty much every auction. We probably went to 100+ auctions in the 18 months it took to buy my house.

    • [Deactivated] on 20/03/2016 - 20:34

      So people bid after a successful buyer is declared?

      The OP reckons the first bidder won the auction.

      • [Deactivated] on 20/03/2016 - 20:54
        +7

        I think the OP is wrong. The procedure he described is normal, the wording is incorrect. The people who placed the highest bid didn't win the auction, they were just the highest bidder before it was declared on the market.

        • ravonda on 20/03/2016 - 21:17

          I think you're right. I don't recall the auctioneer say the last bidder has won. Just that they need to discuss the price with the vendor.

          I just find it really weird that people who didn't bid before, suddenly decide to bid after it didn't went through at the first instance.

        • [Deactivated] on 20/03/2016 - 21:22
          +2

          @ravonda:

          Didn't want to inflate the price too much?

        • ravonda on 20/03/2016 - 21:28

          @Drew22: Well, if the vendor went ahead with the last bid, they would've missed out. And it sold for an inflated price anyway IMO. :)

        • danield on 20/03/2016 - 21:28
          +2

          thorton82 - This sounds like the logical answer, if wasn't mentioned it was on the market and I dare say it wasn't then this is exactly how a usual auction works. A lot of people, myself included will not bid at auction until the auctioneer clearly states that its on the market, before that time, the reserve is unknown to the bidders.

        • [Deactivated] on 20/03/2016 - 21:29

          @ravonda:

          If someone is offering 900k then someone will pay $900,001

        • ravonda on 20/03/2016 - 21:31

          @Drew22: The final bid of 900k and the "second" final bid was a difference of 40k. I have never seen that before. :/

        • [Deactivated] on 20/03/2016 - 21:32
          +1

          @ravonda:
          It's nothing out of the ordinary

        • ravonda on 20/03/2016 - 21:33

          @danield: That's a good point. Will keep that in mind.

        • [Deactivated] on 20/03/2016 - 21:36
          +1

          @ravonda: Mate, sounds like you have some lessons to learn. I can't count the number of properties that were listed here in Melbourne for $800k that had a $1mill reserve and went for $1.4+

        • ravonda on 20/03/2016 - 21:50

          @thorton82: I have seen cases like that. I just haven't noticed a second auction happening RIGHT after the first one was presumably done. Like, all of a sudden, people woke up from their nap during the first auction and decided to start bidding. Now THAT is what I have learnt can happen.

        • [Deactivated] on 20/03/2016 - 22:12
          +2

          @ravonda: this is standard operating procedure

  • djones145 on 20/03/2016 - 20:42

    guess it didn't hit the reserve? then the seller lowered the reserve to 900k so anything above it is winning it sell

    prolly had a 1 million reserve

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