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
