A Property Auction 'Unsold Lot' is quite simply when the property was not sold during the bidding process. This could be due to the property not receiving any bids, not reaching the reserve or perhaps even being withdrawn.
Ah well better luck next time, best pack up and go home, no bargains to be had today right?.
Well actually no, the game is far from over;
Perhaps during your practice run at a Property Auction you may have noticed that after the auction ended, the auctioneer didn’t leave the rostrum.
In fact there were also a number of other auction representatives hovering around and they all seemed to be in conversation with members of the audience.
In all probability, what is going on here are post auction negotiations between the auction house, vendor and potential buyers, centreing around Unsold Auction Lots. And there are still bargains to be had.
Property Auction psychology - the table has turned
Possibly there was a point during the bidding when you were tempted to bid over your maximum (or shame on you, you actually did!). Well that same temptation to reduce the reserve will now be nagging away at the seller and this is a great time for you to act.
Many of those people now engaged in negotiation are the professional buyers, some of whom only ever buy at this stage. They know the bargain hunting has often only just begun at this stage and they have built portfolios of property using the Unsold Property Auction Lot tactic.
Even if you are not able to negotiate an Unsold Lot at this stage, there is still the possibility that you may be able to at a later date.
Just because the auction is over it does not mean that the auctioneer doesn’t still want to sell the property. You want to buy, the seller wants to sell and the auctioneer wants to get paid. Everyone still has a vested interest in getting a deal done.
Unsold Auction Lots are often advertised on the auctioneer’s website after the day.
Keep visiting the site - these unsold lots only get listed because the seller still wants to sell. Furthermore, as time goes on so the motivation to sell tends to increase - all of which improves your negotiating position.
A quick look at the time of writing at the countrywide property Auction website showed 89 unsold lost currently listed.
Don't wait for Unsold Lots to appear on the Property Auction website
It can take days (sometimes weeks) for websites to be updated.
Why not call the auction later on the day or possibly the next day and ask for a list of unsold lots. You will find that they are more than willing to help.
Auctioneers will often tell you the reserve price of the Unsold Property Auction Lot if you ask (and sometimes even if you don’t).