Mastering Pre-Auction Offers: What You Must Know Before You Bid

Understanding Pre-Auction Offers:

• A pre-auction offer is made before the scheduled auction date. This strategy is used by potential buyers who wish to secure the property without facing competitive bidding at auction.
• Making an offer before the auction requires timing and strategy. Typically, this move is made once you’ve conducted due diligence but before the property gains significant interest.

Pros of Pre-Auction Offers:

• By making an offer before the auction, you might avoid a bidding war, which can drive the price higher.
• If accepted, a pre-auction offer can bring certainty to your property purchase process earlier than expected.

Cons of Pre-Auction Offers:

• Sellers might only consider pre-auction offers that are significantly compelling, often above the expected auction price.
• In a hot market, sellers might prefer to take their chances at auction, expecting a higher final bid due to competitive interest.

How to Make a Successful Pre-Auction Offer:

• Research recent sales and current listings in the area to gauge a fair offer price.
• Demonstrating financial readiness can make your offer more attractive to the seller.
• Tailor your offer to suit the seller’s timeline, such as a flexible settlement period.