Mechanics of an Auction

patsy_mccabe

I was at an auction recently of a house and some land. Just popped in for a look as I was in the area at the time.
Anyway, land and house was advertised with a price. This price was exceeded but it was not put on the market. The auctioneer finished by saying they would negogiate solely with the final bidder.
Is this normal practice? I'd imagine the underbidder would be contacted too and maybe try and play one of the other. Would this be the case?

lalababa

patsy_mccabe wrote: »

I was at an auction recently of a house and some land. Just popped in for a look as I was in the area at the time.
Anyway, land and house was advertised with a price. This price was exceeded but it was not put on the market. The auctioneer finished by saying they would negogiate solely with the final bidder.
Is this normal practice? I'd imagine the underbidder would be contacted too and maybe try and play one of the other. Would this be the case?

All sorts of types of property auctions in Ireland I'm afraid. Anything goes. There is such a thing as a Kerry auction!
The auctioneer / vendor uses whatever means possible to get the highest price.
Buyers are left dangling and strung out 'til they get desperate. An Irish auction especially for farms/land is really an accelerated private treaty sale including gazumping.

Muckit

patsy_mccabe wrote: »

I was at an auction recently of a house and some land. Just popped in for a look as I was in the area at the time.
Anyway, land and house was advertised with a price. This price was exceeded but it was not put on the market. The auctioneer finished by saying they would negogiate solely with the final bidder.
Is this normal practice? I'd imagine the underbidder would be contacted too and maybe try and play one of the other. Would this be the case?

Were u there for the entire auction patsy? Not that l know a lot about auctions, but sometimes a property like that is put up in 3 lots. Lot1 house on its own. Lot2 land on its own. Lot 3 the entire.

Perhaps they were making more on their own and if you came in at the end, the entire wasn't making as much and they were going to give this bidder the chance to match the combined sum of the first 2 lots?

P.s. l could be talking crap. Just trying to figure it myself!

Cavanjack

patsy_mccabe wrote: »

I was at an auction recently of a house and some land. Just popped in for a look as I was in the area at the time.
Anyway, land and house was advertised with a price. This price was exceeded but it was not put on the market. The auctioneer finished by saying they would negogiate solely with the final bidder.
Is this normal practice? I'd imagine the underbidder would be contacted too and maybe try and play one of the other. Would this be the case?

Yeah normal practice. Finished highest bidder once on a lot and another man finished highest bidder on a different lot, the hammer fell on neither. Both of us asked to stay on after the auction but nothing to stop anyone else contacting the auctioneer and negotiating after the auction if a deal wasn't done.

Aravo

Sometimes you will have an advised minimum value or AMV. This is a guide price at which the seller has the choice to accept or not. if hammer does not fall, usual practice is for the seller to instruct their agent to deal with the highest bidder first in a bid to secure agreement. If no agreement then onto next highest bidder if they are still interested. No bidding between highest bidder and underbidder after auction as the auction took place already.