The Pre-Auction Offer- Tips from a property strategist

In general, pre-auction offers are not advisable, as they show your hand and gives the agent an unfair advantage in the sales process.


However, if you feel that you just have to have the property and you don’t want to compete for it at auction, you can usually make a pre-auction offer.

Here are some tips from RealRenta to help you execute your pre-auction offer:

·     The offer will still be subject to auction and sales conditions

·     Make a realistic offer but under your maximum bid

·     Put your offer in writing with a preferred settlement time frame

·     When the vendor comes back asking for an increased offer-up your offer slightly and tell them that that is your final pre auction offer

·     Do not contact the vendor or agent again if you do not get a response

·     If the vendor or agent contact you just before the auction, tell them that you may or may not be bidding-you should be able to tell from their reaction if they are desperate for you to attend the auction.

·     Another tactic is to tell the vendor/agent that your offer is valid only for a limited time, because you want to bid on other properties

·     Make sure that you set your limit and stick to it

·     Attend multiple auctions, research past sales because intentional under-quoting is still happening.

·     Negotiate any changes to the contract before auction


Need help with building your property portfolio?

Speak to our trusted property strategist Jamie, contact us @ propertysales@realrenta.com

Need a property loan?

Contact us @ propertyloans@realrenta.com



Jason Gwerder
Monday, 14 October 2019

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