In Victoria, what happens if a property fails to reach its reserve price at auction?
Correct Answer
D) It is passed in, and the vendor may then negotiate a private sale with bidders.
When a property is passed in at auction, it means the reserve price wasn't met. The auctioneer may then negotiate privately with interested bidders, or the property can be sold through other methods like private treaty.
Why This Is the Correct Answer
If bidding does not reach the reserve, the auctioneer passes the property in and no sale occurs at the auction. The vendor can then negotiate a private sale, usually starting with the highest bidder, or choose another sale method.
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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?
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