Gday guys,[
]i have just read the october edition of insider that i recieved in my email, and in the subject of Auction shenanigans Steve talks about vendor bids.
he said that the vendor put 3 bids in. to my understanding the vendor can only put 1 bid in.
Can anyone back me up on this? [?]
[
] Powmow [][
] wow []i cant believe that after 46 views no one has had any idea?!?!
oh well
[
] Powmow []I just did a search and came up with this.
Doesn’t help much but maybe you could search further. I would be interested to know how many bids they can have also.http://www.reiv.com.au/members/pg_members_auctrulesofconduct.html
Regards Joy
Hi Powmow,
From my experience I have learnt that the vendor retains the right to bid on their own behalf. Although it’s a dummy bid, they aren’t about to declare that on the auction floor are they? You might even pick the dummy bidder, but how can you prove that either way? The vendor could make several bids closing near their reserve. The dummy bidder walks away, then the under bidder is approached for negotiation. It’s smoke and mirrors and I am in two minds about the morals of dummy bidding. The vendor won’t sell for less anyway so it does not really matter. Even if the vendor’s bid was not on the floor, you could not expect to pay any less than their genuine reserve.
The “one-bid only” you refer to may in fact be the other interpretation of a Dutch Auction. I recall that it usually appears in an auction of goods and chatels, or say at a clearing sale. The reserve price is declared by the Auctioneer to open the bidding. If it’s met or exceeded, the sale takes place. If not, it’s passed in. Clean cut.
Regards, Phil
Powmow, I think it is different for each state as to the number of vendor bids one can have.
Cheers
Mel
[] wow []i cant believe that after 46 views no one has had any idea?!?!
oh well
[
] Powmow []I have been away for a week so couldn’t reply.
The rules ofr each state are different but in Victoria the new legislation has not become law yet.
Even so most agents are behaving. IN Victoria there is no restriction on the number of bids -but they must be declared.
I have bought a couple of properties at auction for clients in the last months and sols a few also. Interesting times[
]The new laws change the way we must deal with auctions. The new tactics to use isthe lead article in our next free monthly 12 page newsletter coming out in a week or so. If you dont already subscribe but want to send email me and let me know
Michael Yardney
Metropole Properties
http://www.metropole.com.au
]
] Powmow [
] wow [
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