Making a Pre-Auction Offer: What You Need to Know

Hello Readers!

Are you considering making an offer on a property before it goes to auction? Understanding the process of pre-auction offers can give you a competitive edge and potentially secure your dream property before it reaches the broader market. Let’s explore how pre-auction offers work and what you need to do to prepare.

How Pre-Auction Offers Work

When a property is listed for auction, potential buyers have the opportunity to submit an offer before the auction date. This is known as a pre-auction offer. All offers are presented to the seller, who then decides whether to accept a pre-auction offer or proceed with the auction in hopes of achieving a higher price.

If Your Offer Is Accepted

If the seller accepts your offer, the sale will proceed under the auction terms and conditions. This means that even though you've agreed on a price before the auction, the process follows the same legal framework as if it were bought at auction.

Steps to Make a Pre-Auction Offer

1. Ensure Funds Are Available: Before making an offer, confirm that your funds are readily available. This is crucial as you’ll need to move quickly if your offer is accepted.

2. Review the Legal Pack: Always review the legal documents provided in the auction’s legal pack. These documents contain important information about the property and any legalities that could affect your ownership.

3. Complete Necessary Surveys: If you require any surveys, have them completed before making your offer. This helps avoid any surprises about the property's condition that could affect its value to you.

Finalising the Deal

Should your offer be accepted, you will have 24 hours to sign the contract and transfer the 10% deposit along with the buyer's premium. This tight timeframe is standard in auction sales, emphasising the need for preparedness and swift action.

Conclusion: Be Prepared and Act Fast

Making a pre-auction offer can be a great way to secure a property, but it requires careful preparation and quick decision-making. Ensure you have your finances in order, understand all the legal aspects, and are ready to commit to the sale under auction conditions. With the right preparation, you could successfully purchase your desired property before it even hits the auction room.

Ready to make a pre-auction offer? Contact your Property Auction Agent today, and take the first step towards securing your future property.