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Are REA's allowed to do this at Auction?

Discussion in 'The Buying & Selling Process' started by Rich W, 26th Apr, 2016.

  1. Rich W

    Rich W Well-Known Member

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    Just attended an "auction" in my suburb to gauge the interest and who is buying in my area (North West Sydney) as not many auctions happen in my suburb so I was curious.

    In a nutshell, the place was advertised 1.2 to 1.3 million a few weeks ago (quite high $ for the area and IMO over valued for what it was). Then a couple of weeks ago it changed to Auction for the ANZAC weekend on Saturday.

    I turned up, probably only 5 to 6 parties standing around in the back yard, not sure how many registered. The auctioneer went through the whole opening speech about the "wonderful" property blah blah, the Auction terms and conditions board was displayed and there were about 2 or 3 other agents from that agency standing around so it all looked legit and ready to kick off bidding.

    Then auctioneer said along the lines of, "We aren't going to have a usual auction today as we have 1 registered party who are running a bit late and we also have another very interested party who can't be here to bid today and they are awaiting finance approval on Tuesday (next working day) to go ahead to put an offer on. So if you want to stay back after this you can put in an offer and so you might be able to secure the property before Tuesday".

    Then that was it... thanks for coming etc. One party said "so no bidding today!?" looking a bit confused and stunned. I later checked the Auction results and there was no mention at all about the property. So can someone explain what happened here and is this allowed?
     
  2. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    They could not hold an auction in the traditional sense because they had no registered bidders in attendance. (1 was registered by not on-site, another could not make it). You need 2 x people minimum for an auction to work. Of course it is allowed.
     
  3. Rich W

    Rich W Well-Known Member

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    ]
    So why didn't they just explain that and why wasn't the result of that day recorded for the Saturday listings? It just sounded a bit fishy to me. Seemed like they had an expensive property and they wanted to attract serious buyers to try negotiate and leave the bait that they had someone about to make an offer on Tuesday and another running late.
     
  4. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    It doesn't sound as good as the story they spun.

    It is not uncommon for agents to not reply to the phone call from RP Data about auction results. Published auction results are always dodgy for this and other reasons.

    The agent is there to sell the property and not to put negative spin on the fact that no-one registered to bid. You're right, they wanted to get people to make offers and not to be seen wasting the vendor's money on a failed auction campaign.
     
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  5. Jacque

    Jacque Buyers Agent and Bookworm, Sydney Business Member

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    This isn't uncommon behaviour at auctions, however usually if insufficient interest they do cancel them prior. Sounds like, in this case, they thought they had 2 bidders but it turned out not to be on the day so too late to cancel....
     
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  6. TMNT

    TMNT Well-Known Member

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    isnt that the point of an auction? if you want it, you turn and accept the unconditional conditions and those that cannot make it or are unqualified for the conditions, arent eligible.

    so the agent/vendor can change their mind thus stuffing people around who have prepared themselves,

    pretty crappy in my opinion,
    obviously if it doesnt reach reserve, then they can not sell.

    I attended an auction, where I was the only bidder, they had a look around, I made a bid below reserve ( I assume) , a couple of days later they called me up and accepted
     
  7. MarkB

    MarkB Some guy on the internet Premium Member

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    The screen you are reading.
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  8. Scott No Mates

    Scott No Mates Well-Known Member

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    Yes and no.

    Records will show VB (The bar will be empty).

    Agent can't boast of 100% success rate at auction (as this didn't sell vs cancelled auction)

    As there was no auction hence no bids, the agent is free to negotiate with all comers.
     
  9. TMNT

    TMNT Well-Known Member

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    that too me is
    1. giving too much power to the agent
    2. Introducing a massive grey area

    silly in my opinion,

    so if it was a divorce and teh seller wants to get the lowest price to piss off the spouse, and someone bids too high, the agent can refuse because its not in the interests????

    ridiculous