Hi all
In preparation for buying my 1st home, I have been downloading the latest auction results for my suburb every week, from http://www.homepriceguide.com.au/auction_results/index.cfm?source=apm
I am trying to get an idea of prices in my suburb. Now most places sell at auction – 'highest bid', so what does it mean when it says 'vendor bid'? I did try to do a search on this topic but couldn't find much relevant info.
Thanks in advance!
In NSW the vendor is legally permitted to make a single bid. This is a tactic used either to stimulate bidding or to bring the auction closer to finality. This is allowable in order to stamp out 'false bids' which are elicited from passing traffic, dogs, signposts or non-registered buyers.
In the first instance, if no-one will start the bidding or if bidding has stalled the vendor can put in a single bid to try to get things rolling.
Alternatively, if the bidding is nowhere near the reserve, the vendor may put in a bid near/below the reserve either to point to the reserve (ie the next bid will bring it 'onto the market' etc) or use the bid as a showstopper if noone is interested at the price. Usually noted as VB in the results.
BTW if the note in the paper is 'HB' this is the highest bid and the property did not sell at auction. A sale is designated as 'S'.
ohh, I didn't even realise that a Highest Bid means the property didn't sell. How confusing. Thanks for straightening that out for me!!
And thanks for clearing it up about the Vendor Bid for me.
It means the property failed to sell. The market price at that point of time was somewhat below the listed (failed) price.
Cheers, F. [cowboy2]
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