Reserve not to exceed

tarwad

does anyone know what "Reserve not to exceed" means in property ads on property websites?

thanks in advance

Victor

At an auction, the vendor will tell the auctioneer the reserve - that is the amount below which the vendor is not willing to accept bids. Let us say a property is estimated at selling at €250,000, a reserve of €200,000 might be set. If the bids don't reach €200,000, the property isn't sold, unless the vendor changes the reserve. If bids are €200,000 or more, the property is 'on the market' and the auctioneer can sell, without referring back to the vendor. The potential buyers generally aren't told what the reserve is, which might be off-putting.

Advertising that the reserve doesn't exceed a certain figure gives the potential buyers a certain level of reassurance that their time, effort and money isn't wasted.

Note, when bidding at auction, you can't pull out if you are the highest bidder, you are stuck with the property. The auctioneer can sign the contract on your behalf. You are typically require to have 10% of the bid on the day (bank transfers usually accepted). If considering bidding, it is worthwhile getting legal and other advice beforehand and be happy with the property and the title before bidding - one of the reasons to go to auction is that the property or its title is defective.

Riskymove

tarwad wrote: »

does anyone know what "Reserve not to exceed" means in property ads on property websites?

thanks in advance

its an indocation of the max the reserve price is

so if "reserve not to exceed €200,000" then the most the reserve price can be is €200,000....but it could be less than that

but buyers know that €200,000 is at least the reserve so any bids at that elvel will be accepted

Kosseegan

Riskymove wrote: »

its an indocation of the max the reserve price is

so if "reserve not to exceed €200,000" then the most the reserve price can be is €200,000....but it could be less than that

but buyers know that €200,000 is at least the reserve so any bids at that elvel will be accepted

Only one bid can be accepted. It is normally the highest bid over the reserve.

wdmfapq4zs83hv

Can I ressurect this & ask does this term mean the property can't be sold for more than this amount? Ie if a property has "Reserve not to exceed 100, 000 " does that mean the property can not be sold for more than 100, 000?

L1011

No, it doesn't

Baby01032012

Levi Fast Teetotaler wrote: »

Can I ressurect this & ask does this term mean the property can't be sold for more than this amount? Ie if a property has "Reserve not to exceed 100, 000 " does that mean the property can not be sold for more than 100, 000?

There's no limit on what a property can be sold for, only what someone is willing and able to pay. If a seller puts a property up for auction they can set a reserve, the highest bid above which they will accept. If bids fail to reach the maximum reserve the seller can withdraw the property from the auction, the important point is that they don't have to accept a bid below the maximum reserve.

eezipc

From my experience in property auctions, the reserve can be much lower than the final bid. For example, there was a small cottage I was very interested in a couple of years ago. Reserve was 40k I think. Beautiful little house. I went to the auction and the final bid was 85k.
However, it can work the other way. I eventually bought a house in auction for less than the reserve as nobody else bid on it and the owner just wanted to get rid of it.

Jjjjjjjbarry

Can you see what other people are bidding or is it a case of put in your best offer and hope for the best?

Ray Palmer

It basically lets you know that no matter what the starting price in the auction is the seller does not have a reserve above and amount. So starting bid of €45k and reserve not above €100k and the price reaches €90k the auctioneer may say not sold as reserve not met. However if the bidding gets to €100k the auctioneer can't do that.
The individual properties may have a lower reserve but not above.

arctictree

If someone bids at a higher price than you at an auction but subsequently cannot complete, are you legally obliged to complete at your bid?

Victor

Jjjjjjjbarry wrote: »

Can you see what other people are bidding or is it a case of put in your best offer and hope for the best?

Most auctions have all the bidders or their representatives present and the bidding is out loud. If you aren't used to auctions, having an experienced bidder do your bidding may be useful.

arctictree wrote: »

If someone bids at a higher price than you at an auction but subsequently cannot complete, are you legally obliged to complete at your bid?

I would think no - not last that you might have proceeded on another property and might not have the funds.

Jjjjjjjbarry

If you bid on a house in an auction and win, are you still allowed to back out and get your deposit back should the engineers report prove unsatisfactory? E.g you discover the roof needs replacing or something lesser.

I.e do normal rules apply or are there hard and fastened rules that bind you for life by winning the auction? :eek:

Graham

Jjjjjjjbarry wrote: »

If you bid on a house in an auction and win, are you still allowed to back out and get your deposit back

No.

You win, you buy.

Victor

Jjjjjjjbarry wrote: »

If you bid on a house in an auction and win, are you still allowed to back out and get your deposit back should the engineers report prove unsatisfactory? E.g you discover the roof needs replacing or something lesser.

I.e do normal rules apply or are there hard and fastened rules that bind you for life by winning the auction? :eek:

You are meant to have any investigation done before bidding. If you try to withdraw the winning bid, the auctioneer can sign on your behalf. At a minimum you could be stuck for the 10% and/or the difference between your bid and any eventual sales price. At worst, you are stuck for full price on something that is worth something between nothing and a hole full of money (in the bad meaning of the phrase).

Auctions are not for the uninitiated.

Peregrinus

arctictree wrote: »

If someone bids at a higher price than you at an auction but subsequently cannot complete, are you legally obliged to complete at your bid?

No. You're not legally bound until your bid is accepted, and the seller can only accept one bid. The acceptance of one bid involves the rejection of all the others, so if the seller accepts the highest bid but the deal for some reason falls through, he can't then go back and force the underbidder to buy. He has already rejected the underbidder's offer, and the underbidder doesn't have to repeat it.

Jjjjjjjbarry

Victor wrote: »

Jjjjjjjbarry wrote: »

If you bid on a house in an auction and win, are you still allowed to back out and get your deposit back should the engineers report prove unsatisfactory? E.g you discover the roof needs replacing or something lesser.

I.e do normal rules apply or are there hard and fastened rules that bind you for life by winning the auction? :eek:

You are meant to have any investigation done before bidding. If you try to withdraw the winning bid, the auctioneer can sign on your behalf. At a minimum you could be stuck for the 10% and/or the difference between your bid and any eventual sales price. At worst, you are stuck for full price on something that is worth something between nothing and a hole full of money (in the bad meaning of the phrase).

Auctions are not for the uninitiated.

Sounds like good advice. Noted with thanks.