Forrestfield 
What you need to know about making a PRE-auction offer
Fallen in love with a property but don’t want the stress of having to bid at auction for it?
You’re not alone. There are a lot of buyers out there who simply don’t like the stress and competition that can come with bidding for a property at auction and so they may try to skip the auction process altogether and make a pre-auction offer.
Will the seller accept?
If you’re going to go in with an offer for a property prior to its auction date then you’re going to need to make it one they can’t refuse.
Some sellers will be keen to hear pre-auction offers because it can save them the stress and hassle of having to auction their property, and it means they can lock in a sale quickly – which may be important to them if they have already purchased another property elsewhere.
But, for a seller to accept a pre-auction offer it’s going to need to be an enticing one, particularly in the current market where there’s strong demand.
A lot of properties are achieving very good results at auction at present, and sellers are hoping that this will apply to their home too.
If you want a seller to walk away from their auction you’re going to want to make it a worthwhile offer – that means that both the price and the conditions need to be favourable.
Do your research
If you want your offer to be seriously considered then you’re going to need to do your research and find out what you think the property might sell for if it did go to auction.
A good way to get a rough estimate of a property’s price is to not only check out online property reports but also to look up the prices of similar properties in the area that have recently sold.
Try to find property sales that are as recent as possible, as prices have climbed considerably over the past few months. Also don’t forget to take into account property variables such as renovations, proximity to amenities, as well as the general look and feel of the property and the street it’s on. Even the tiniest of things can make a big difference in the amount of appeal a property has.
Make yourself aware of the pros and cons
Keep in mind that making a pre-auction offer isn’t always going to be the best strategy for purchasing a property.
If you make a pre-auction offer there is a chance that you’ll end up paying more for a property than you might have if you went to auction, however many buyers are happy to risk this for the opportunity to secure a property quickly.
There is also the chance though that a pre-auction offer won’t be accepted and then you have given away your game plan. This can sometimes work against you as it may increase a seller’s price expectations, which may make bidding harder for you on auction day.
Overall, a pre-auction offer can be a good option for a buyer looking to skip the intimidating auction process but it’s crucial to do your research first. Find out if it’s the right strategy for the property in question and don’t hesitate to chat to the selling agent if you have any questions or concerns.
