Auctioneer picks holes auction bid reforms
NSW Government legislation outlawing dummy bids is good PR but will not banish the practice, says Peter Pantling of Australian Independent Auctions. Pantling said although bidders have to register with agents before auctions, it's likely that some of these people will be dummy bidders who will inflate prices. Their names will be retrieved from agents' databases of genuine property hunters or be supplied by the vendor himself. It is also still too easy for agents to under or over-quote on prices, he said. Although prices are stated in agency agreements, there is nothing stopping agents from having unofficial prices agreed with vendors, then placing lower prices in these agreements to attract bidders.