In case it is “on the market” bidding goes on till it stops. Then the auctioneer will ask for the last offers, saying the greatest bid again.
In case there aren’t any additional bids, he or she will state “Going, going, gone” or “Going once, going twice, going three times, sold!” and puts down her or his hammer on the word “gone” or “sold”. The real estate is sold to the greatest bidder.
If the bidding doesn’t attain the proprietor’s upset price the property is not vended. In such a case the house is regarded as passed in.
When the house is passed in, the greatest bidder frequently has chances to bargain with the vendor and the agent.
What Happens if Your Bid is Successful?
Being a successful bidder you will have to sign a contract and pay a fee at once, normally 10% (though, you may bargain with the vendor to pay a lesser fee before the auction.) So, you shouldn’t forget to have a cheque-book or other ways of payment with you. The best variant is to consult with the real estate agent prior to coming to an auction on which form of payment is preferable.
Auctions involuntary renounce any cancellation period. So bear in mind that when you sign the contract, and then do not proceed with your purchase, you will definitely lose your fee.
In addition, you may be indebted to the seller for the shortfall realized on the vending of the real estate for 12 months of the auction and rational expenses related to the sale or you may be taken to court by the seller for the violation of the contract.
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