Article published 7 June 2021
A pre-auction offer can see you beat the competition – but you need to have plenty of ducks in a row to be sure you can follow through.
Planning to buy a home at auction is always a gamble. Only one buyer will walk away the winner. As property prices rise, plenty of home buyers aren’t taking that chance, and in some areas up to one-third of homes listed for sale at auction are being snapped up before auction day.2
4 steps for a pre-auction strategy
In a rising market, where supplies of listed stock are tight, it’s no surprise that more homeowners are choosing to sell at auction. It’s a decision that can deliver spectacular results, with homes often selling for well above the reserve price.3
Of course, the conundrum for sellers is that there are no guarantees a property will sell under the hammer. If it doesn’t, the owner still wears the cost of the auctioneer’s fee, followed by an ongoing sale campaign. This uncertainty can give buyers a strategic advantage. Making a pre-auction offer could tempt the owner to sell prior to auction. But it’s a step that calls for careful planning. Here are four steps to help make your pre-auction bid a winner.