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So you’ve found the house of your dreams. But there’s a catch – it’s going to auction so all you can do is wait and hope you’re the lucky bidder, right? Nope, there is another option. It’s one that could see you with the keys in your hand without ever having to hear the bang of the auctioneer’s gavel.
Putting in an offer before auction
In today’s competitive real estate arena, it’s common for interested buyers to put in an offer before a home goes under the hammer.
If you find yourself in this boat, there’s a few things you should understand and get in place to increase your chances of success.
- Get your finance sorted – make sure you have your loan pre-approval firmly in place before submitting an offer.
- Ensure it’s legal – get your conveyancer or lawyer to review the contract. While you may be in a hurry to snatch up the property, you should ensure there are no surprises in the contract ie property covenants (building restrictions) you need to be aware of.
- Consider the competition – the estate agent will present your offer to the vendor. But they will also notify any other interested parties and invite them to counter-offer. As the agent works for the vendor, it’s their job to act in their best interests to try to drive up the price. This may result in a ‘boardroom auction’ where you go back and forth until the highest offer is submitted. Be prepared for this and understand it may not go your way, or be the quiet purchase you envisaged.
If you have all these things in place, buying a property by submitting an offer before auction can be exhilarating. We wish you the best of luck and hope you end up with the keys in your hand at the end!