Auction Frequently Asked Questions

Auctions can feel intense, especially if it’s your first one. Here’s a list of the common questions we hear from buyers and sellers across Oakleigh, Oakleigh South, Oakleigh East, Hughesdale, Huntingdale, Chadstone, Bentleigh East and surrounds. If you’ve still got questions of your own, our team is always happy to walk you through it.

• Do I have to register prior to bidding at an auction?

No it’s not a legal requirement in Victoria. If you are serious about a particular property it is always worthwhile registering your interest with the agent.

• What is a vendor bid?

It is a bid made on behalf of the vendor (owner) not a buyer.

• Who can make a vendor bid?

Only the auctioneer.

• Does the auctioneer have to declare a vendor bid each time it is used?

Yes.

• How many bids can a vendor make?

There’s no restriction, but our policy is generally limited to a maximum of 2–3 vendor bids.

• What is a reserve price?

The price in which the owners are willing to sell the property.

• What does ‘passed in’ mean?

The bidding has not reached the vendor’s reserve price and the property is not sold.

• What happens if the property is passed in and I am the highest bidder?

The highest bidder gets the first right to negotiate at the vendors reserve price.

• If the property is ‘passed in’ on a vendor bid, what happens then?

The vendor’s agent is at liberty to negotiate with all interested parties.

• What is a genuine bid?

All bids are genuine: there are vendor bids and buyer bids.

• What is a buyer’s advocate?

A person who is commissioned to act on behalf of a buyer (if you use one, make sure this person is a licensed estate agent and a member of the REIV).

• Do I need to pay a 10% deposit if I buy?

Yes. If the contract calls for 10%, or less if the vendor agrees to a lesser amount.

• Can I cool off if I buy under auction conditions?

No. There is no cooling off period for properties purchased at auction (or if you sign a contract within three clear business days before or after a scheduled auction date).

Disclaimer: This guide is for general information only. It does not constitute legal, financial or taxation advice. Always seek independent professional legal, financial and taxation advice. Thresholds, rates and government schemes are subject to change.