Auction terms to know

Friday, October 02, 2009

With spring here, the residential property market will see an increase in stock as vendors seek to take advantage of the better weather in spring to sell.

If you are considering buying, there are a few terms that you need to be familiar with.

Passed in: around 20 per cent of properties auctioned this year have been passed in.

This happens when the highest bid at the auction does not meet the vendor's reserve price.

Passed in on vendor's bid: this happens when the last bid was made by the vendor or the agent on the vendor's behalf.

Reserve price: at the heart of the auction process is the reserve price.

The reserve price is the minimum price that the vendor wants for their property.

The reserve is typically set by the vendor the day of or the day before the auction.