40 Pine Street

Frankston North VIC 3200 · Sat 7 Feb, 10:30am
PASSED-IN STRATEGY
Negotiation Max
$635,000

Target price: $610-625k with conditions

The Goal

Be the highest bidder when it passes in. Don't win outright.

Passed in = you get first right to negotiate price, deposit, conditions, settlement. A much stronger position than winning at auction.

Why Passed In Is Better

Win at AuctionPassed In
PriceFixedNegotiate down
Deposit10% now5% in 3 days
Building inspectionToo lateAdd condition
Finance conditionNoneAdd 14 days
SC 25 (3pm settle)Stuck with itRemove it
SC 2 (deposit release)Stuck with itRemove it
Cooling-offNone3 days (if signed 3+ days after)
Settlement30 days60-90 days

What You Bring Today

1Photo ID — to register as a bidder (driver's licence or passport)
2Phone — to call Omar during negotiation
3This page — your reference

No bank cheque needed. You're not planning to win at auction. If passed in, deposit terms are negotiated before you sign. You can arrange EFT within 1-3 business days.

Bidding Plan

Reserve Estimate: $620,000 - $640,000

This is an estimate. You won't know the actual reserve until you hear "on the market" (met) or "passed in" (not met).

Why $620-640k? What if it's higher?

Based on: listing range $600-660k, agent practice (reserve near top of range), 22 Forster sold $650k.

Could be higher. Vendor may set $650k+ if they think golf backing justifies it.

If Reserve IsYour Position
$620kEasy pass in. Negotiate from ~$600-615k
$640kStill passes in. Negotiate from ~$620k
$660k+Certainly passes in. Even more leverage

Higher reserve = better for you. Bigger gap = more motivated vendor.

Your Steps

1
Register early — just need photo ID
2
Bid enough to stay on top — you need to be highest when it stalls
3
Don't push past $620k — you want it below reserve
4
Use $2,500 increments — keep it slow, kill momentum
5
If you hear "on the market" — STOP — reserve is met, next bid wins outright. That's not your play.
Risk:

If another bidder outbids you by $2.5k at the end — they get first right to negotiate, not you. Stay the highest bidder.

Danger Zone: "On the Market" Trap

If YOUR bid triggers "on the market" and nobody else bids — you just bought it. At auction. Unconditionally.

No conditions. 10% deposit now. SC 2, SC 25 all apply. Contract signed today. Your passed-in play is over.

"On the market" means the current highest bid has already hit reserve. It WILL sell. The next bid wins.

ScenarioResult
You bid $610k. Auctioneer says nothing.Safe — below reserve
You bid $615k. Auctioneer says "on the market".Your bid hit reserve. If nobody else bids, you own it at $615k — at auction terms.
You're at $615k (yours). Auctioneer says "passed in".Perfect. Negotiate.

How to Protect Yourself

1Bid conservatively: $600-615k range. Low enough that you'd be OK owning it at that price if it accidentally goes on the market.
2Let someone else test the reserve. If another bidder pushes to $620k and it goes on the market — that's their commitment, not yours.
3Watch the auctioneer's body language. If they look like they're about to call it on the market — don't bid.
4If it goes on the market at someone else's bid — stop. Don't bid. Let it sell to them or let it play out. Your passed-in play is done.
The sweet spot:

Be the highest bidder in the $600-615k range where you're comfortable owning it even at auction terms, but low enough that it's almost certainly below reserve. Let it stall. Let it pass in.

Key Phrases to Listen For

"Vendor bid"
Agent bidding on behalf of seller — not a real buyer. Don't react.
"I'm going to refer to the vendor"
Bidding stalled below reserve — checking with seller. Good sign for you.
"The property is on the market"
DANGER — Reserve met. Next bid wins outright. STOP bidding unless you want to buy at auction with no conditions.
"The property is passed in"
THIS IS WHAT YOU WANT. Didn't meet reserve. Negotiation starts.
"Passed in to the highest bidder"
That's you. Agent will come to you immediately. You have first right.

After It Passes In

This happens fast. Be ready.
1
Agent comes to you within seconds — right there at the property
2
Go aside privately — away from other bidders
3
Call Omar immediately — put him on speaker or step aside. 0447 224 441
4
Start negotiating — price first, then conditions (see below)
5
Other bidders have to wait — they only get a turn if you walk away
Don't rush. You have the power here. The agent wants to close the deal. Take your time, consult Omar, get the terms you want.

What to Negotiate

Price

$
Open at $610-615k — well below your $635k max
$
Target: $620-625k — with conditions attached
$
Walk at $635k — hard max, no exceptions
Your leverage line:

"22 Forster Ave — 3 bedrooms, no golf course — sold at $650k. This is 2 bedrooms."

Conditions to Add

ConditionAsk ForWhy
FinanceSubject to finance, 14 daysProtects you if loan falls through
Building inspectionSubject to building, 7-14 daysCan walk if major issues found
Settlement60 days (not 30)More time to arrange everything

Contract Terms to Change

TermCurrent (Bad)Ask For
SC 25Settle by 3pm — conveyancer says unreasonableRemove or change to standard
SC 2Vendor gets deposit earlyRemove — deposit held in trust
SC 18 & 31"As inspected" no warrantiesLess critical if you have building condition

Deposit Negotiation

At auction: 10% on the spot. After passed in: fully negotiable.
TermAsk For
Amount5% (~$31,750) instead of 10% ($63,500)
TimingWithin 3 business days via EFT
SC 2 removalDeposit held in trust until settlement (not released early)

No Bank Cheque? No Problem.

You don't need a bank cheque to register or bid. Deposit is only due when you sign the contract — and after passed in, you negotiate those terms first.

Estate sale advantage:

Executors want this done. They'll accept flexible deposit terms to close the deal. A 5% deposit via EFT in 3 days is standard for post-auction private sales.

Ready-Made Scripts

If Agent Asks About Deposit at Registration

Say:
"I'm here to bid. I have finance arranged." (That's all you need. Registration only requires ID.)

Opening Negotiation After Passed In

Say:
"I'm interested but I'd like to discuss terms. Can I call my conveyancer to join this conversation?"

Price Negotiation

Say:
"I'll offer $615,000 subject to finance and building inspection, with 60-day settlement. 22 Forster got $650k with 3 bedrooms and no golf — this is 2 bedrooms."

If They Push on Deposit

Say:
"I didn't bring a bank cheque as I expected this might pass in. I have finance approved and can arrange 5% deposit by Monday via EFT. Happy to sign with a 3-day deposit clause."

If They Push Back on Conditions

Say:
"I'm a serious buyer but I need building inspection and finance conditions to proceed. Without them I'd need to walk. I think we can make this work for both sides."

If They Say Another Bidder Will Buy Without Conditions

Say:
"That's their choice. I'm not comfortable buying without building inspection on an estate sale with no warranties. If they want it unconditional, they can have it." (Call their bluff. Often there isn't another buyer ready.)

Call During Negotiation

C
Omar Babak
Your Conveyancer - OB Conveyancing (001585L)
0447 224 441

Call Omar the moment it passes in. He can advise on every term in real time.

Other Contacts

A
Jason Dowler
Selling Agent - Harcourts Hastings
0403 598 754
Property Quick Reference
Config2 bed / 1 bath / 4 cars
Land649m2
SpecialBacks onto The National Golf Club
Listing$600-660k
Fair value$640-680k (blended 3-method)
Rental$480-500/wk
Key comp22 Forster Ave: 3-bed, no golf, sold $650k (Jan 2026)
Anchor comp6 Norfolk Cr: 2/1/4, 635m2, $647k (May 2025)
SOI Evidence (Save for Later)

Agent used only 3-bed comparables for a 2-bed property. If sells above $660k, file complaint at forms.consumer.vic.gov.au/uq. Penalties up to $38k/breach.

HomeScorePro · Data refreshed 6 Feb 2026 (1,000 records)

Not professional valuation advice.