During an auction, at what point does the property become 'on the market'?
Correct Answer
C) When bidding reaches the reserve price
A property goes 'on the market' when bidding reaches or exceeds the reserve price set by the vendor. At this point, the property will definitely be sold to the highest bidder, whereas before reaching reserve, the vendor can withdraw the property from sale.
Why This Is the Correct Answer
A property is 'on the market' once bidding reaches the reserve. From then the highest bid will buy it, whereas below the reserve the vendor is not bound to sell.
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- → 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?
- → 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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- → In NSW, if a property is passed in at auction, what are the vendor's immediate options?
- → In NSW, the auctioneer takes a bid on the vendor's behalf without announcing it as a vendor bid, and the property is then knocked down to a genuine bidder. What is the legal position?
- → 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?
- → 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?
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Previous Question
During a private treaty sale, a buyer makes an offer subject to finance approval within 14 days. The vendor accepts the offer. What happens if the buyer cannot obtain finance within the specified timeframe?
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During an auction, when does the auctioneer normally announce that the property is 'on the market'?