7 tips for a pre-auction offer

While auctions are a popular method of selling property, they are not for everyone. Some buyers find the process daunting and stressful.

If you fall into this category and want to avoid competing in a bidding war to secure your dream home, here are our top tips for making an offer before auction.

Understand the property’s true value

Good sales analysis and research can help you make a pre-auction offer. A pre-auction offer should reflect the property's true market value. It also needs to meet the seller's expectations.

Research your desired properties and comparable properties online to learn about your local real estate market. Attend property inspections and auctions and see what similar properties are selling for. This will help you understand the current market and make a more informed pre-auction offer.  

Use our search function to find properties that match your brief. If you’re flexible about where you'd like to buy, check out our suburb guides for insight into Australia’s top lifestyle locations.

Reach out to the real estate agent

Building a positive relationship with the property’s real estate agent can help you understand the seller’s requirements and determine the level of interest in the property.

Ask the real estate agent about the number of contracts issued and request a property price guide to help inform your pre-auction offer.

For more information on property offers, read our blog 5 things to do before making a property offer.

Uncover the seller's reason for selling

Knowing the seller’s motivation to sell can help you prepare a solid pre-auction offer to consider a pre-auction sale.

Other factors besides price, like timing and feelings, can influence a seller's choice to sell before an auction.

A seller might want to avoid the unpredictability of an auction and prefer a clear result earlier. Each seller has unique reasons for selling their home, so it's important to take the time to understand their motivations.

Organise your finances

Some sellers prioritise a quick sale and may choose financially ready buyers.

That’s why you must solidly understand your finances before house hunting. This includes considering the purchase price, property taxes, potential strata fees, and upkeep.

A key step is getting pre-approval from your bank or mortgage broker. This gives you a clear idea of what you can afford and shows sellers you’re serious and ready to purchase. Pre-approval also helps you act fast when you find the right home, especially in competitive markets.

Beyond securing pre-approval, seeking professional financial advice is critical. A financial advisor can help you navigate the costs, set realistic expectations, and ensure your decisions align with your long-term goals.

This step can streamline your buying journey and boost your chances of securing your ideal home before making a pre-auction offer.

Making a pre-auction offer

Agents are obliged to bring all offers to their clients. When securing a property before an auction, your offer needs to be high enough and/or provide enough upside for a seller compared to going through the auction. 

Do your market research and consider recent comparable sales and vendor expectations per the property price guide. Your agent will be able to advise you if an offer is competitive. 

Consider the timing of your offer. Sometimes, waiting and gauging interest in the property might be better before making an offer too early in the campaign.

Negotiate

Negotiating a property sale is all about give-and-take, and price is often not the only element on the table. Other elements can be up for discussion, such as the length of settlement, deposit amount, repairs required, or the inclusion of property fixtures and fittings.

No matter how stressful the negotiating process may get, try to leave your feelings at the door and apply pressure only if you are confident your terms are acceptable—remember that emotion and urgency could cost you the sale.

The process of buying and selling can sometimes feel daunting, but you don’t have to go it alone. Contact your local Hockingstuart office today for expert advice and assistance with your next move.