At an Adelaide auction, bidding stalls $40,000 below the vendor's reserve. What happens next?
Correct Answer
D) It is passed in; the vendor may negotiate with the highest bidder or relist
If the reserve price is not met, the property is 'passed in' and is not sold at auction. The vendor may then choose to negotiate with the highest bidder or use another method of sale.
Why This Is the Correct Answer
If bidding does not reach the reserve, the property is passed in and not sold at auction. The vendor may then negotiate, usually first with the highest bidder, or choose another way to sell.
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