Pre-Auction Offers: A Quick Guide for Buyers and Sellers

A pre-auction offer is an offer made to purchase a property before its scheduled auction date. It can be a smart move for both buyers and sellers but it requires careful consideration and preparation.

For Buyers

Making a pre-auction offer can help you secure a property early, but it’s not as simple as making a standard offer. Here’s what to keep in mind:

• Check availability: Contact the auction house first to see if the seller is open to pre-auction offers.• Do your homework: Fully inspect the property and carefully review the legal pack before making any offer.• Submit your strongest bid: Pre-auction offers usually need to be at or above the guide price to be taken seriously.• Be ready to move fast: If your offer is accepted, the sale follows auction terms, so you’ll need funds ready to pay the deposit and buyer’s premium immediately.

For Sellers

Accepting a pre-auction offer can bring speed and certainty, ideal if you’re looking for a quick sale.

• Go through the auction house: All offers should be submitted via your auction company, who will verify the offer and advise you on its strength.• Review buyer interest: The auctioneer will notify all interested parties before a pre-auction offer is considered, ensuring fair opportunity.• Weigh your options: If buyer interest is low, a strong pre-auction offer might be your best outcome.• Understand the process: If accepted, the sale proceeds under the same auction terms, with exchange upon acceptance and completion typically within 28 days.

Takeaway

A pre-auction offer can benefit both parties. Buyers gain early access to a property, and sellers secure a swift, certain sale. The key is preparation, clear communication with the auction house, and readiness to move quickly under auction conditions.