Pre-auction offers

Through the real estate agent you can make a pre-auction offer to the vendor.

So far this year 20 per cent of all auction sales have been sold before the day of the auction; this compares to 23 per cent at this time last year. In general there is a 20 per cent chance the home will sell before so if you are interested it is sensible to consider an offer lest you miss out.

With that in mind, there are a number of advantages in making an offer, even if the offer fails.

A successful offer can allow you and the vendor to avoid the auction itself. It is also the case that even if your offer is unsuccessful, the vendor is less likely to sell to a higher bidder without giving you another opportunity to make an offer.

If you do make an offer it has to be an attractive one that gets the vendor’s attention and convinces him or her not to wait ‘til the day of the auction.

There are a number of things you can do to make the offer attractive: first, put the offer in writing; second, attach a time limit after which the offer expires. In some cases presenting the offer with a cheque for the deposit can really show the vendor that your offer is serious and that they may be better off not waiting ‘til the auction.

It is also always advisable to get legal advice before signing the contract of sale.