Just starting your property journey? Knee deep in inspections? Ready to sell your family home? About to bid at an auction? Or just a real estate tragic like us at THE AUCTIONEER? Get to know the real estate auction lingo.
Auction Rules The rules or schedule under which an auction is conducted.
Contract of Sale The legally binding documentation setting out the terms of sale of a mutually agreed property transaction between vendor and purchaser.
Genuine Bid A bid put forward by a prospective buyer under auction conditions.
On the Market The seller’s reserve price has been met and the property will be sold to the highest bidder.
Opening Bid The first bid at auction.
Passed In The property did not sell at auction; it was “passed in”
Purchaser The buyer of the property, the name on the contract
Reserve Price The price set by the vendor prior to the auction, as the minimum price they are willing to accept for the property.
Section 32 The legal documentation relating to the property (in Victoria).
Consisting of a Certificate of Title, Plan of Subdivision, Council and Water Rate details, Owners Corporation Certificates if applicable, permits, Vicroads, heritage overlay and zoning information and the like. (HOT TIP: all of the paperwork relating to the property).
The vendor signs off on the Section 32 prior to providing to prospective buyers, hence otherwise as known the “Vendor Statement”.
Vendor The seller of the property.
Vendor Bid A bid placed by the Auctioneer on behalf of the vendor. A vendor bid is used by the auctioneer to bring the bidding closer to sales price expectation
Vendor Statement Commonly referred to as the Section 32 (in Victoria); see above definition of Section 32.
Clearance rate The clearance rate is a percentage that is calculated by: Adding the total auction properties that were sold for the week (including those sold before and after auction) and dividing this by the number of auction results available (including Sold, Withdrawn and Passed In results), then.