Making an offer isn’t only restricted to Private Treaty sales – it is also possible to make a pre-auction offer on a property you are keen to buy before auction day. If you are wanting to make a pre-auction offer, make sure:
- Your pre-auction offer is in writing.
- You have a contract and deposit cheque ready.
- You have set a time limit.
Make sure the price is right
Don’t jump in with an offer that is miles below the vendor expectations, as it isn’t likely to be taken seriously. In fact, it may even make the seller reluctant to work with you.
Making sure you have done your research is your best weapon when it comes to negotiation. Knowing the market, the value of the property you are looking at and what your best offer would be is very important.
Once you know all this, make an offer that is realistic – don’t be scared to put your best offer in as it may mean the difference between walking away with the property or not. Also remember that working for a quick purchase can mean the tradeoff is in the cost, so be wary of your budge and if the prices is too high be prepared to walk away.
Get Your Timing Right
There are two schools of thought here. Some believe it is good to wait until close to the auction date before pre-offering. This way the seller and the agent will have a concrete idea of the interest in the property and they may be willing to consider a good pre-auction offer. On the other hand, a pre-auction offer made early in the campaign may trigger other parties to give up as they haven’t had the time to do their due diligence properly.
At the end of the day it is up the vendor to determine if they will accept a pre-auction offer, or whether they would prefer to take their property to auction and see what it gets on the day.