NSW - Continue auction campaign after accepting offer

Hi all,

For a house going to auction in Sydney, can a vendor accept an offer with a 5 day cooling off period and continue to market as if they are going to auction until the cooling off period is over? Just in case the buyer pulls out.

I am guessing no, but just wanted to check what the rules are. Hence why pre-auction offers needs the cooling period waived.

Thanks

 

Why not?

Though the vendor is more likely going to ask no cooling off, same as the auction.

 

Should be sold with S66W (waiver of cooling off period) otherwise it's BAU until it's unconditional.

Also there should be no other special conditions on the offer eg subject to finance/B&P etc.

 

So a vendor can accept an offer with a 5-day cooling off period with no other conditions as the offer is the right price they want, and they can keep going with the auction campaign whilst the buyer completes their due diligence, finance application, whatever else etc.

After 5 days, the buyer can choose to proceed with unconditional sale like an auction or pull out in which case the vendor proceeds to auction with 0.025% extra in their pocket.

Wondering why vendors insist on the cooling period being waived as they can keep marketing as if they are going auction, whilst the buyer spends extra $ or time finalising research with certainty they can buy it at the agreed price.

 

the uncertainty isnt worth the 0.25%. The vendor doesnt care what the buyer spends if its not going to them. The auction bidders are willing to sign with no cooling.

 

Because it's not worth the hassle. You should do all your research before making a S66W offer.

You can always make a written email offer before signing.

 

It’s an interesting point you make, but with auction campaigns being 3-4 weeks there is plenty of time for buyers to be prepared, make a mid-campaign offer and not need a cool off.

I guess there’s no harm in being ‘encouraged by the offer’ but as a vendor I’d be insisting on the 66W. Like lucidity mentioned, wouldn’t be worth the hassle and if they’re a serious buyer they’ll need to bid unconditionally in a couple of weeks anyway. The Sydney market is generally well conditioned to these circumstances.

- Paul

 

Thanks all for you comments and helping me understand.

Seems that whilst there is nothing to stop pre-auction offers with a cooling off period being accepted and continuing with the auction campaign just in case the buyers pulls out, it is the norm and accepted practice that pre-auction offers have the cooling off period waived.

Yes there is time for buyers to be prepared, but there may be additional research with associated costs or time investment from other parties (e.g. their preliminary view on subdivision, builds, major renovations etc) which is easier to get with an accepted offer.

It is what it is, especially when it's not a clear buyer's market.