At Ray White Bacchus Marsh, our auctions are conducted in accordance with Victorian legislation and the professional standards set by the Real Estate Institute of Victoria (REIV).
Official Auction Rules
By law, the auctioneer must announce the following rules at the commencement of every auction:
The auctioneer may make one or more vendor bids at any time during the auction.
The auctioneer may refuse any bid.
The auctioneer determines the increments by which bids may be advanced.
The auctioneer may withdraw the property from sale at any time.
The auctioneer may refer a bid to the vendor at any time before the auction’s conclusion.
In the event of a dispute over a bid, the auctioneer may resubmit the property for sale at the last undisputed bid or restart the bidding.
The auctioneer must not accept any late bids after the property has been knocked down to the successful bidder, unless the vendor or buyer refuses to sign the contract of sale.
If a reserve price is set and the property is passed in below that price, the highest bidder earns the first right to negotiate with the vendor.
These rules are in accordance with Schedule 1 of the Sale of Land Regulations 2005: General Rules for the Conduct of Public Auctions of Land.
How to Bid at Auction
To purchase a property at auction, you must place a bid.
If your bid is the highest and exceeds the vendor’s reserve price, you will purchase the property unconditionally.
If your bid is the highest but the reserve price is not met, the property will be passed in. You will then have the first opportunity to negotiate with the vendor.
If the property is passed in on a vendor bid, the vendor (via the selling agent) may negotiate with any genuine prospective buyers.
The auctioneer will clearly announce when the property is “on the market” and will be sold.
Key Tips for Buying at Auction
Research the area and review comparable sales.
Conduct all required inspections prior to auction day.
Bid confidently and do not be intimidated by other bidders.
Attend other auctions to understand the process.
Ensure your finance is arranged early.
Set a clear bidding limit.
Seek legal advice early and review all documentation.
Have a minimum 10% deposit available (or a deposit bond, if accepted).
Bring appropriate identification and ensure you register to bid.
Before Auction Day
Obtain a copy of the contract of sale and have it reviewed by your legal representative.
Complete all inspections (building, pest, zoning, etc.) and ask any questions before auction day.
Remember: auctions are unconditional, there is no cooling-off period.
Ensure arrangements are in place to pay the 10% deposit immediately if you are the successful bidder.
On Auction Day
If the auction is on-site, arrive early for a final inspection and to ask any last questions.
If you prefer someone else to bid on your behalf, you must provide a signed authority letter to the auctioneer before bidding begins.
Bid in the manner most comfortable for you—quiet and strategic or confident and early.
If the bidding reaches the reserve price, the property will be sold.
If the reserve is not met, and the vendor does not accept the highest bid, the property may be passed in. In most cases, the highest bidder is given the first right to negotiate.