What happens when a property is passed in at auction?
On auction day whether you are the bidder, or the vendor nerves are at an all-time high so if a property is passed into you as a bidder here is a list of what should you expect:
Firstly, the term ‘passed in’ indicates that the property was not sold at auction and the bidding has now ceased, if you are the highest bidder then you will have the first right to negotiate with the agent and vendor:
1 Negotiation with the Highest Bidder: The person who made the highest bid gets the first chance to negotiate with the seller. They may agree on a price and finalise the sale.
2 Property Stays on the Market: If no agreement is reached, or if there were no bids, the property remains for sale. Other buyers can make offers.
3 Marketing Continues: The property might be advertised further, and the seller may adjust their strategy or price to attract more buyers.
4 Possible Adjustments: The seller may lower their asking price or change their selling approach, possibly trying another auction or a private sale later.
5 Finalizing the Sale: If a deal is made after the auction, the buyer typically pays a deposit, and the sale is finalised, with legal and financial steps similar to those in a regular sale.
6 Withdrawn: In some cases, a vendor will decide that they no longer wish to sell and in this case the property will be withdrawn from sale.
When it comes to negotiating when a property is passed in it is always best to have planned for this prior which is where having an experienced buyers advocate on your side for what many define as the critical negotiation phases of your purchase.
It is important to have the right advice prior to bidding at auction and especially if the property is passed in to you, at astute buyers advocates we ensure that we are the protective buffer between you and the agent which allows us to ensure that no emotional decisions are made and we can protect buyers from themselves, ultimately ensuring that you as the buyer never overpay for real estate.