The concept of the ‘Auction Remaining Open’ refers to the ability for the bidder to negotiate with the seller during the Auction, at the time when the auction would commonly paused. Quite often you will see the auctioneer pause the auction once the bids stop, the property is not yet called ‘on the market’ and the agent/auctioneer will spend some time talking with the owner and highest bidder. At this point they are ultimately trying to form an agreement on price. If an agreement is reached between both parties then the property is placed ‘on the market’ and sold. However, if no agreement is reached, the property is simply passed in. Once the auction is passed in, the auction is over immediately.
Who Can Bid?
Any buyer whom is registered to bid and displays a bidder number.
On the Market
The property needs to be called ‘On the Market’ before it is sold. This announcement is a clear signal to the bidders and purchasers that the property will be sold and if sold, no further negotiations are entered into. Its on this announcement that in some cases the speed of the bidding increases or it actually brings into the auction additional bidders, because they know the home is about to be sold.
The timing of the announcement is at the discretion of the Auctioneer, however the reserve price needs to be reached before the announcement is made.