Buying At Auctions

What is the vendor reserve price?

The "vendor reserve price" indicates the minimum price the vendor is willing to sell the property for.

When bidding has reached the vendor reserve price, the property will be sold at auction - if it does not reach this level, the property may not be sold.

If you are bidding at auction, be aware that negotiations with the highest bidder often begin immediately, so it is essential you are prepared.

What is a vendor bid?

The vendor can make a bid to help move the auction process along - or to help push the property towards the reserve price.

This bid can either be made by the vendor themselves or by the auctioneer on their behalf.

The Auckland district law Society together with the New Zealand Real Estate Institute have a standard form of contract called Particulars and conditions of sale of Real Estate by Auction. The right of the vendor to place a bid is outlined in the conduct of of Auction section clause 2.5. The Real Estate Institute Auction Code of practice states that should the Auctioneer make a bid on behalf of the vendor he/she must declare such bid to ensure the fairness and transperancy of the Auction process . Clause 3.4 (a)

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