Monday, February 15, 2010

Auction Terms

Auction Terms:

Reserve: This is the lowest price the sellers will accept once the bidding goes over this price the property is declared "on the Market"

"On the Market" - The Auctioneer may confer with the sellers then come and say that the property is "on the market" this means that the highest bidder after this point when the auctioneer has called the bid three times ("going once, going twice - are we all done - final call - SOLD") will have bought the property

Penciller: this is a person usually an employee of the agency or aucitoneers firm who records all the bids in the order they are taken and the paddle number

Paddle Number: these are plastic or paper numbers that help the auctioneer and agency staff identify bidders - it helps keep the process moving. At most Auctions you can choose your favourite or lucky number.

The Auction Board - this is a board that we are required to display at all Open to View times with the title of the property, the contract, the Auctioneers details and registered number and any other relevant information - in Queensland this may include the new Sustainability Declaration.

Auciotneers bid or Vendors bid - the auctioneer is allowed by law to place bids on behalf of the seller, to keep the auction moving, he must announce that the bid is either an auciotneers bid or a vendor bid and the penciller will record this.

Passed in - this is what it is called when the property fails to reach the reserve price and the seller does not wish throughout the course of the Auction to decrease the reserve. The Property will be passed in to the highest bidder and they will have first right to negotiate a price outside of the auction arena. This may take hours or days.

Sold Under the Hammer - this means the bidding reaches the reserve price level and the highest bidder is sold the property.

Deposit - there is usually a deposit required to be paid by the successful bidder at the conclusion of the auction - it is usually 10% although a Variation to Terms can be signed changing the deposit amount. The deposit can be paid by bank cheque, cash or EFT - again in the case of EFT the variation to terms will include a transfer date.

Heard any other phrases that you might need explained ? Just add your question to the comments box below and I will get back to you as soon as I can.

Until next time



  1. The "New Sustainability Declaration" for Qld home sellers has had a reconfigure to make it much simpler for sellers to fill out instead of having to hire a assessor at around $70-$200 a pop. More info here

  2. Thanks John the new form is certainly very user friendlyu and not as confusing as the original one.