In short, yes!
Part 10 of our Auction series continues this week with a look at an auctioneer’s ability to refuse bids.
One of the conditions of sale by auction is that “the auctioneer may refuse to accept a bid that, in the auctioneer’s opinion, is not in the best interest of the seller”.
This is part of the Property Stock and Business Agents Act (2002) and it is one of the conditions that must be on display at any residential real estate auction.
The auctioneer may knock back a bid that is too small of an amount (e.g. $250 or $500) but it all depends on timing as well.
An auctioneer might knock back a bid of $500 at the start of an auction but not towards the end.
An auctioneer may also knock back a bid at the start of an auction that is just too low or in a completely different price range to where the property has been promoted. Most auctioneers don’t mind starting low, but a bid that is ridiculously low can have a negative impact on the property and the auction.
