A vendor asks her SA agent how the reserve price will be handled at Saturday's auction. What should the agent tell her?
Correct Answer
D) The reserve stays confidential between vendor and auctioneer and is not disclosed to bidders
The reserve price in SA is confidential and set by the vendor in consultation with the auctioneer. It is not disclosed to bidders. The auctioneer announces whether the property is 'on the market' (reserve met) during bidding.
Why This Is the Correct Answer
The reserve is the vendor's confidential minimum, given to the auctioneer and recorded in the auction record. Bidders are not told it; the auctioneer may say when the property is on the market.
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- → An agent in NSW quotes a property at $800,000-$850,000 but sets the reserve at $900,000. Three weeks later, the agent receives feedback that most buyers are interested at $820,000-$840,000. What should the agent do to comply with underquoting legislation?
- → In NSW, a buyer signs a private treaty contract for an established home and changes their mind two days later. When can they withdraw, and at what cost?
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