Pre Auction Offers

Your pre-auction offer needs to be cash unconditional.

The same as any bid at auction, your pre-auction offer needs to be cash conditional. Auction campaigns usually run for between 3-4 weeks which allows all perspective purchasers to carry out their due diligence so they can be in a position to bid unconditionally at auction.

Your pre-auction offer is unlikely to stop the auction altogether.

If the vendor accepts your pre-auction offer, the most likely event is that the auction will be brought forward. This allows any other perspective purchasers an opportunity to bid. Your pre-auction offer price becomes the opening bid, if there are no further bids then the property will be sold at your pre-auction offer price or otherwise there could some fierce competition and the selling price could be considerably higher than the initial offer.

Advantage of a pre-auction offer.

The advantage of submitting a pre-auction offer is that you’re beating other perspective purchasers to the punch which is likely to eliminate those who have not had enough time to carry out their due diligence. Some say that a pre-auction offer is an effective way to avoid out-of-control bidding wars.

Needs to be a strong offer.

By submitting a pre-auction offer you’re effectively asking the vendors to cut the property’s exposure to the market. This means you’re going to have to make your offer worthwhile for the vendors to cut the timeframe down for any other perspective purchasers to carry out their due diligence.

Just because your pre-auction offer was declined it doesn’t mean that is not what the property will sell for on auction day.

There have been many instances where a pre-auction offer was not accepted but they would sell for that price on auction day if there was nothing better. The only reason it wasn’t accepted is because the vendor would rather carry on with original marketing plan which they have invested into in the hope of attracting more perspective bidders.

If you have any questions, please feel free to contact The Foote' Team today – we are more than happy to help!