The Auction Isn’t Over: How to Win When a Property Passes In
In This Week’s How's The Market | Edition 123
The Auction Isn’t Over: How to Win When a Property Passes In
The Ultimate Bayside Residence
Rates watch: RBA says it ‘can’t wave a magic wand’
The Auction Isn’t Over: How to Win When a Property Passes In
It’s auction day. You’ve done the prep. You’ve placed a bid. And then… it passes in.
Now what?
Most buyers freeze at this point but, those who understand how the post-auction game works? They often walk away with the deal of a lifetime.
Let’s break down what really happens when a property passes in and how you can come out on top.
What Exactly Does "Passed In" Mean?
When bidding doesn’t reach the vendor’s reserve, the auctioneer announces the property has been passed in unsold.
But here’s the key: the highest bidder at that moment gains exclusive negotiation rights with the vendor.
That means you, if you're the last bidder, get first crack at closing the deal often before anyone else gets a chance.
Why It Feels Like a High-Stakes Poker Game
Post-auction negotiations aren’t public. You’re likely ushered into a room, separated from other buyers (or the vendor entirely). The agent walks back and forth, delivering numbers and “updates.”
It’s awkward. It’s tense. But it’s also your moment.
The trick? Read the room literally. One tactic savvy buyers use: politely excuse yourself, head to your car, and discreetly check if other buyers are still around. If not, you’ve got serious leverage.
Behind the Curtain: How Reserves Really Work
Here’s something most buyers don’t know: reserves are flexible.
Sometimes vendors increase the reserve last-minute, anticipating a pass-in and wanting to negotiate from a higher figure. Other times, if bidding heats up, they drop it to “put it on the market” and spark more action.
So don’t assume the quoted price means much. I once bid $2.1M well above the quoted range only to be told the reserve was $270K higher. A so-called “realistic reserve” turned into a drawn-out negotiation. But guess what? I still bought it, with the vendor dropping over $130K in the end.
Play It Smart: Your Auction Day Prep List
I recommend every buyer walk in with three numbers:
Dream Price: The number that would make you feel like you’ve scored a total bargain.
Fair Market Value: The number you’re okay paying even if it’s not a steal.
Walk-Away Price: The absolute maximum. Anything higher? You’re out.
Write them down. Use comparables. Don’t go in with vibes—go in with proof.
Navigating a Passed-In Negotiation
Here’s how the best buyers take control post-auction:
Be patient. Agents may try to rush you. Don’t bite.
Stick to your numbers. It’s easy to get emotional especially when you’re “so close.”
Use comparable sales. Agents will try to justify the price. You need facts to counter their narrative.
Know the vendor’s situation. Have they already bought it? Are they desperate to sell today? Ask smart questions before auction day.
I once secured a property $600K below its original quoted range by presenting cold, hard facts and staying calm under pressure.
Pro Tips to Win the Post-Auction Game
Assume the property might pass in and prepare in advance
Build rapport with the agent, but don’t fall for emotional tactics
Bring a buyer’s agent if you’re unsure negotiating alone isn’t easy
Don’t skip bidding just because it’s “not on the market” yet
Stick to your plan. No matter what.
Stay ahead of the market - get the real auction results every week!
What The Agents Are Saying
Signs of spring are starting to show!
I was speaking with multiple agents yesterday who have told me their offices are starting to gain more traction for the spring selling season.
In previous weeks multiple agents have been saying that stock for spring is looking limited, however, this week, it seems that more listings are starting to filter through.
Listings are starting to pick up online and we will see some larger auctions weekends upon us in the coming weeks.
The Wow Factor!
1/26 Esplanade, Brighton, Vic 3186
A pinnacle of architectural grandeur.
Nestled directly across from Brighton’s scenic shoreline.
Wow Factors:
Private Garden Oasis
Light-Filled Interiors
Luxurious Bedroom Suites
Entertainer’s Dream Zone
Seamless Outdoor Flow
Gourmet Chef’s Kitchen
High-End Finishes
Secure Triple Garage
Prime Coastal Location
Price guide: $4,250,000 - $4,450,000
In The Media
Rates watch: RBA says it ‘can’t wave a magic wand’
The Reserve Bank of Australia is holding firm — and households hoping for an August rate cut may need to wait just a little longer.
RBA Governor Michele Bullock says the board "can’t wave a magic wand" to fast-track labour market adjustments, adding that interest rates are a “blunt instrument” when it comes to delicate economic balancing.
“Our goals of low and stable inflation and full employment are closely linked,” she said in a Sydney address.
Why it matters:
July’s surprise rate hold shocked markets
Inflation is easing, but not yet “secure”
Labour market is shifting – slowly but steadily
A third rate cut is still on the table… but only if the data stacks up
With unemployment ticking up slightly and vacancy rates holding steady, next week’s data could decide everything.
All eyes now on the RBA’s August meeting. Will they cut – or hold again?
Final Thoughts
The auction isn’t the end. It’s often just the beginning.
If you’re clear-headed, confident, and well-prepared, a passed-in property can be your golden ticket.
If you or someone you know would like assistance to buy this year, book in a call and we can discuss if we can help.
Thanks for reading this far!
We value feedback and if you have any suggestions on what you would like covered in the future please email me at tristan@tomii.com.au
Happy Buying!
Note: This is general advice and does not take into consideration your objectives, situations or needs. Please consider if this advice is suitable for you and your circumstances and speak to a professional before making any financial decisions.
