A property is passed in at auction with the highest bid of $780,000, but the reserve was $820,000. What happens next?
Correct Answer
C) The agent may negotiate with interested parties on the vendor's behalf.
When a property is passed in at auction, the agent can negotiate with interested parties on behalf of the vendor. There is no obligation to accept any bid below the reserve, and the vendor can choose to negotiate, re-auction, or switch to private treaty sale.
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More Property Marketing Questions
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?
An agent in NSW receives an offer on a property listed for private treaty sale. The agent knows of another buyer who previously expressed strong interest but hasn't yet made a formal offer. What is the agent's legal obligation regarding disclosure?
In NSW, if a property is passed in at auction, what are the vendor's immediate options?
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- → In NSW, if a property receives three bids above the advertised price range during an expressions of interest campaign, what must the agent do regarding the advertised price?
- → On auction morning a NSW vendor tells the auctioneer she will text her reserve price once she sees how bidding goes. What do the auction conditions require?
- → A married couple intend to bid together at a NSW residential auction to buy the house jointly. What registration is required?
- → Tom plans to bid at a NSW house auction on behalf of his sister, who will instruct him by phone from Perth. Neither holds power of attorney. What must Tom do to bid for her?
- → Before a NSW residential auction, the vendor asks the auctioneer to make two vendor bids if bidding stalls, both announced as vendor bids. What must the auctioneer tell the vendor?
- → A buyer arrives to register at a NSW residential auction with only her overseas passport, which does not show her address. What will allow her to register?
- → Two brothers co-own a NSW house being sold at auction, and one brother wants to bid to buy out the other. What must happen for the co-owner to make more than one bid?
- → A NSW house was passed in at auction on the auctioneer's vendor bid of $1.4 million (invented). The next week the agent's online listing says 'Passed in at $1.4m, now for sale'. What is wrong with this?
- → The agency agreement for a Penrith home records an estimated selling price of $780,000. The agent's draft online listing reads 'Offers over $780,000'. Is the listing compliant?
- → A sales agent tells a caller that a Kogarah unit is likely to sell between $640,000 and $700,000. What record does the Act require, and for how long?
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Previous Question
A property is advertised with a price guide of '$800,000 - $850,000' but the reserve price is set at $920,000. What issue does this create?
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A real estate agent advertises a property with multiple price indicators across different platforms: '$600,000+' on the website, '$550,000 - $600,000' in print advertising, and verbally tells prospective buyers 'around $650,000'. Which statement best describes this situation?