Passed In: Meaning and Definition
“The status of a property at a public auction when the bidding fails to reach the reserve price, resulting in the property not being sold.”
When a property is passed in at auction, it means the public bidding did not meet the confidential minimum price (the reserve price) set by the seller. When this occurs, the property is not sold under the hammer. However, under standard NSW auction laws, the highest bidder is granted the first right to negotiate with the seller's agent immediately after the auction to try and reach an agreement.
Passing in carries strategic risks for sellers. It registers a public failure, creating a digital record that buyers can use to argue the property is overpriced, which can lead to lowball offers. It also extends days on market, during which the seller continues to pay mortgage interest and holding costs. Bypassing this auction risk in favor of a direct private treaty or direct sale to an off-market buyer like ROAME Australia avoids this public exposure and ensures price certainty from the outset.
Frequently Asked Questions about “Passed In”
What does "Passed In" mean in Australian property?
The status of a property at a public auction when the bidding fails to reach the reserve price, resulting in the property not being sold.
How does "Passed In" apply when selling a house privately in NSW?
When selling a property privately in New South Wales, understanding "Passed In" is important because it affects your rights, obligations, and the overall sale process. We recommend reviewing the relevant NSW legislation and consulting a licensed conveyancer for advice specific to your situation.