Hello,
I'm in Vic.
I've been to a few auctions recently for a bit of a look, during which the REA will mention that if there are no successful bids, whoever has made the highest bid will have first rights to negotiation.
However, usually no one bids and the property passes in. Straight afterwards however, the REA is usually surrounded by 2-3 groups keen to negotiate.
Am I missing something? Why doesn't one of these parties put in a bid to ensure they're the first to be able to negotiate? I realise they may not want to give away their hand so to speak, but surely even a ridiculously low bid just before the hammer falls would allow them first dibs on negotiation?
Cheers.
Maybe it has to do with the fact that if you bid and you actually win the auction, you are stuck with auction terms. Negotiate later and perhaps you can get longer settlement, right to get a building inspection done and bail out of the purchase if the results of the inspection are bad, etc etc
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
If you negotiate straight after the auction it's still auction terms.
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