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There are few things in life as exciting and stressful as selling or buying a house.
If the emotional attachment and high financial stakes aren’t enough, the anticipation for all involved can exacerbate tensions. Will it sell, when will it sell, at what price will it sell, will the sale conditions be optimal – the list of unknowns goes on. So, after all that angst, imagine the hammer falls on auction day and the winning bidder is nowhere to be found.
Granted it doesn’t happen all the time, but it does happen. And when it does, the impact is significant.
For this reason, the Real Estate Institute of Victoria (REIV) has renewed its call for the
introduction of mandatory bidder registration prior to auctions. The process will be simple. The bidder’s name and contact details are captured to ensure their intention to bid on the home is genuine and legitimate. There’s no requirement to bid, but the prospective buyer has registered for the option to do so.
Bidder registration ensures an honest and clear sales process for vendors and prospective buyers. By elevating the formality of auctions, trust and legitimacy are built into the process leading to a much fairer outcome for all involved. False bids are ruled out.
Importantly, in what is otherwise a challenging process, bidder registration provides a level of certainty for all involved that those who are bidding are genuinely interested in purchasing the home.
Victoria is one of the last remaining states where there’s currently no requirement for potential buyers to register at an auction. The precedent has been unequivocally set in Queensland, NSW, Tasmania, South Australia and the ACT. Bidder registration is a proven and effective method of giving the agent better control over the sales process, reducing confusion and suspicion about any unlawful bidding processes.
Those arguing against bidder registration will point to a buyer’s right to privacy, a potential reduction in competition, extra administration, and implications for bidding strategies. The arguments are valid, however, must be weighed against the significant downsides for vendors and buyers and the need to protect the industry from fraud.
In the next 12 months, it is expected that the extension of the Anti-Money Laundering and Counter Terrorism Financing legislation (AML/CTF) to Tranche 2 will take place, mandating verification of buyer identity. But why wait when we can create a better and fairer process now?
One where the winning bidder is present and accounted for when the hammer falls.
Kelly Ryan is the CEO of the Real Estate Institute of Victoria (REIV).
You are not authorised to post comments.
Comments will undergo moderation before they get published.
If the emotional attachment and high financial stakes aren’t enough, the anticipation for all involved can exacerbate tensions. Will it sell, when will it sell, at what price will it sell, will the sale conditions be optimal – the list of unknowns goes on. So, after all that angst, imagine the hammer falls on auction day and the winning bidder is nowhere to be found.
Granted it doesn’t happen all the time, but it does happen. And when it does, the impact is significant.
For this reason, the Real Estate Institute of Victoria (REIV) has renewed its call for the
introduction of mandatory bidder registration prior to auctions. The process will be simple. The bidder’s name and contact details are captured to ensure their intention to bid on the home is genuine and legitimate. There’s no requirement to bid, but the prospective buyer has registered for the option to do so.
Bidder registration ensures an honest and clear sales process for vendors and prospective buyers. By elevating the formality of auctions, trust and legitimacy are built into the process leading to a much fairer outcome for all involved. False bids are ruled out.
Importantly, in what is otherwise a challenging process, bidder registration provides a level of certainty for all involved that those who are bidding are genuinely interested in purchasing the home.
Victoria is one of the last remaining states where there’s currently no requirement for potential buyers to register at an auction. The precedent has been unequivocally set in Queensland, NSW, Tasmania, South Australia and the ACT. Bidder registration is a proven and effective method of giving the agent better control over the sales process, reducing confusion and suspicion about any unlawful bidding processes.
Those arguing against bidder registration will point to a buyer’s right to privacy, a potential reduction in competition, extra administration, and implications for bidding strategies. The arguments are valid, however, must be weighed against the significant downsides for vendors and buyers and the need to protect the industry from fraud.
In the next 12 months, it is expected that the extension of the Anti-Money Laundering and Counter Terrorism Financing legislation (AML/CTF) to Tranche 2 will take place, mandating verification of buyer identity. But why wait when we can create a better and fairer process now?
One where the winning bidder is present and accounted for when the hammer falls.
Kelly Ryan is the CEO of the Real Estate Institute of Victoria (REIV).
You are not authorised to post comments.
Comments will undergo moderation before they get published.