Hi, we were at an auction on Saturday and we have been notified the successful bidder is not going ahead and the agent has contacted us as the under bidder and wants to negotiate a higher price. The property was for sale and we went to our max at the auction and would like to know legal why our offer can’t be accepted?
Hmmmmm, I cant see any reason for the agent to take your highest bid to the vendor......the question is "will the vendor accept my offer now that the successful bidder is not going ahead?"
Another question might be "how can the winner at auction simply "pull out" after the property has been knocked down to them??" I was always of the opinion that there are no comebacksies at auction......otherwise every man and his dog would run the prices up through the roof and pull out pending finance, or approval from the missus, or a favourable aura-reading or whatever......
If I were you I would be FILTHY with the agent. Someone somewhere has dudded you of the property which you would have expected to be knocked down to you at auction had the other bidder not bought the place and pulled out.....and now the agent looks like he is chiseling you for more.....seems less than upfront and above board to me........to be honest I would give the agent and his vendor a spray and advise them in no uncertain terms what they can do with the house........
but.....maybe its your foreverhome......and you want it come hell or high water.....
I'm an auctioneer myself, under auction conditions the sale occurs after the fall of the hammer and the successful purchaser signs the sales contract there and then as commitment to buy. Exchange of contracts usually occurs there and then after payment of the 10% deposit or deposit amount agreed to by the vendor. Buyer is committed to proceed with the purchase as an unconditional sale under auction terms and conditions.
I have seen purchasers pull out of auction sale and this is occurring more often now as purchaser wasn't financial at the time of sale and bank won't lend on the property or not as much for whatever reason.If they don't or can't proceed to settlement they will loose their deposit and property either re-auctioned or placed back on the market for sale as has occurred with you. You are under no obligation to make offers over and above what you had bid at the auction. The vendor has the right to knock back any offers made from here on if they wish to do so. The agent works for the vendor not you as the buyer to get the best price for the property.But the agent is going about it in an unprofessional manner when he/she should know what your highest and best offer was already. Playing the under and over game as I see it. Stand your ground on the price you see fit for the property.
It is their job to negotiate the highest possible price for their client, the vendor.
It is up to you to decide what a property is worth and what you can afford to pay.
I would stick to my price and not offer any more.
Best of luck