Passing in on a vendor bid on the decline: REIV

The number of properties being passed in at weekend auction on a vendor bid is on the decline, according to the Real Estate Institute of Victoria’s (REIV) CEO Enzo Raimondo.

Looking at statistics over the year, Raimondo said that this year 16% of properties had passed in on a vendor bid, compared to 26% last year.

He noted that this decline suggests that there has been more bidding activity from potential buyers, as opposed to auctioneers announcing a vendor bid to get things moving.

“By law, the auctioneer must announce when a vendor bid is being made,” said Raimondo.

“There is clearly an increase in the level of open competition at auctions lately and this can be measured not just through the clearance rate but also in the way the property passed in,” he concluded.

Currently, this year is recording a clearance rate of 72%, with the remainder passed in or passed in on a vendor bid.