Dear All,
I am new to property investing, sorry that I am asking a question that may sound very obvious to you, what does "passed in" mean in an auction? Can you give a concrete example too?
Thank you beforehand.
property_avid | NA
Bidding on the property failed to reach the vendor’s reserve price. Subsequent negotiations within 24 hrs are still subject to auction conditions.
Thank you. And what is the difference with passed in after vendor's bid?
property_avid | NA
the_kurniawans wrote:Thank you. And what is the difference with passed in after vendor's bid?As Scott said, "Bidding on the property failed to reach the vendor's reserve price," even after the vendor made a bid on thier own property. So in effect, no-one at the auction thought it was worth more than the vendor's bid and it did not reach reserve.
OK, I'm confused here, what's the purpose of allowing the vendor to bid on his own property where he has the reserve price setup beforehand? To me, it does not make sense to allow the vendor to bid on his own property in the auction. Please shed some light, thanks.
property_avid | NA
the_kurniawans wrote:what's the purpose of allowing the vendor to bid on his own property ….You tell me and we'll all know. I think it is the most ridiculous thing to allow a vendor bid – it's insane. I'm supposing that REAs like it, because it gets the auction "moving" if it is stuck.
This is the most ridiculous thing I've ever heard in auction so far! You are buying your own product! How funny it is!
property_avid | NA
the_kurniawans wrote:You are buying your own product!Well obviously the vendor is not going to buy his own property as he already owns it. Which begs the question, "then why let the vendor bid?"
The vendor bid allows the vendor to stimulate bidding if it has stalled or to kill off bidding. Killing off bidding then allows the vendor not to negotiate with the highest underbidder. This can be a strategic play for those who do not like buying at auction.
Then, it is of no difference of having dummy bidders, which is illegal in Australia?
property_avid | NA
the_kurniawans wrote:Then, it is of no difference of having dummy bidders, which is illegal in Australia?No, not really. Dummy bidding is illegal….and you don't necessarily know who is doing it. A vendor bid is announced as such and made by the auctioneer – so everyone is clear what it is.
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