Victorian homebuyers will be less likely to find themselves gazumped at auction with the enforcement this week of new rules applying to bidding at public auctions of real estate conducted on or after Monday 30 June 2008.

The rules are aimed at protecting a successful bidder being gazumped by a late bid or post-auction offer, made after a property has been sold.(That’s Why Auctions Get Lower Prices)According to Consumer Affairs Victoria, the new laws stipulate that:The auctioneer is prohibited from accepting late bids or offers after the property has been knocked down to the successful bidder.(That’s Why Auctions Get Lower Prices)To ensure that people attending an auction are aware of the prohibition, the rule must be displayed for at least 30 minutes before the auction starts.This is set out in Rule 7 of the auction rules.The auctioneer must also announce to the crowd before the bidding starts that late bids and offers will not be accepted.(That’s Why Auctions Get Lower Prices)Estate agents and agents' representatives attending the auction are prohibited from communicating to anyone any late offers they may hear(That’s Why Auctions Get Lower Prices)Good for BuyersBad for Sellers