Can you back out of an auction win?
In many cases — yes. Buyers who have placed a bid can retract their bid any time before the auctioneer announces the sale has been completed. It's important to note, however, that the withdrawal of one bid does not revive any previous bid. The auction will continue with the next highest bidder.
There's no cooling-off period when you buy at auction, so you can't change your mind after you put in the winning bid.
According to eBay, you're allowed to retract your bid if the seller changed the item description significantly or if you accidentally bid the wrong amount.
What happens if you bid at an auction and don't pay? You have committed a breach of contract. Either the auction house or the seller can take legal action against you to recover the damages due to your breach. Depending on the terms of the auction, that could be in court or through arbitration.
If your listing isn't eligible to be ended early, you can contact any bidders to explain the situation and ask them to retract their bids. If the auction has finished, you can contact the winner and, if they agree, you can cancel the transaction.
Offer and Acceptance. In most cases, bids made in online auctions are binding upon the buyer and the seller. When the time of the online auction runs out, the seller and the highest bidder form a contract, provided the highest bidder is above the reserve price.
Buyers can pull out after an auction, but it comes with heavy penalties. This is because they'll be in breach of contract. They'll lose the deposit they paid (which is normally 10% of the purchase price), and may be liable for additional costs too such as the seller's fees, and other penalties.
Buyers must pay for the items they purchase on eBay within 4 calendar days. If the buyer doesn't pay within this timeframe, the seller can cancel the order and an unpaid cancellation will be recorded on the buyer's account.
How do I cancel an eBay bid? Cancelling an eBay bid can be done via the 'retracting a bid' page, using the 'retract a bid' button. Simply click on this, then select the product you wish to retract your bid for and give your reason for doing so.
When the hammer falls in an auction room, it represents an exchange of a binding contract between the seller and the buyer. It is too late for either party to change their minds, and the sale is required to proceed in accordance with the contractual terms and at the price that was concluded when the hammer fell.
Can you refuse sale at an auction?
The auctioneer is not entitled to accept any bids made by the seller or his agent if the buyer has not expressed his intent to do so. Any sale that is in contradiction to this rule will be deemed unlawful and fraudulent by the buyer. The goods for sale at the auction may be subject to a reserve price or an upset price.
If there's only one bidder then the auctioneer is allowed to “run them up” to the reserve price, by bidding against them. However, if their highest bid is still lower than the reserve price then the property will not sell.
eBay clearly states on its site that "Members must pay for the items they win or buy on eBay within two days of committing to the purchase." To ensure that you stick to that window, buyers should always note the terms that the seller stipulates — including the cost of shipping and handling — before making a purchase.
Cancelling an auction tells buyers that you don't expect the property to sell, that there are no buyers. The aim of an auction is to get the seller the best price the market will pay, but when you cancel you give the control back to the buyer.
The winner's curse describes a common problem: the party who wins an auction of a commodity of uncertain value with a fair number of bidders typically pays more than the asset is actually worth.
Auctioneers normally have a duty of care to both seller and buyer, and although auctioneer negligence claims are a highly specialised area of law which require expert knowledge, in cases where there has been a breach of this duty of care and financial loss has arisen as a result, a professional negligence lawyer may be ...
Whether you can end your auction listing early depends on if you've received any bids yet, how much time is left in the auction, and if you have a reserve price in place. Can the listing be ended early? Yes. You may be charged a final value fee based on the amount of the highest bid.
The risk in an auction is that you can never be certain that the winning bidder offered the maximum amount they were willing to pay. A skilled auctioneer could help make the process as competitive as possible and bring out the best bids.
the auctioneer can refuse a bid that is not in the interests of the seller. the auctioneer has no authority to accept a late bid, that is, a bid after the fall of the hammer. if there is a disputed bid, the auctioneer is the sole arbitrator and makes the final decision.
Be aware that the vendor is not generally compelled to sell to any specific person and can change their mind at any time prior to the exchange of contracts. Vendors may not necessarily sell to the person that makes the highest offer, but may accept a lower offer from a prospective purchaser.
Why do real estate agents prefer auctions?
Real estate agents prefer to do auctions because it speeds up the process for them getting their commission for the sale of your property. Instead of waiting up to six months for your house to sell privately, they could get it done in as little as two months with an auction.
“Owner-occupants on a budget and real estate professionals migrate to sources where there is less competition,” he says. “Naturally, auction properties generate fewer offers, resulting in a lower sale price. However, foreclosure auctions don't provide the discounts that existed during the time of the [housing] crisis.”