You can absolutely submit an offer to purchase a property before auction.
There are certain situations where the seller won’t be open to offers. This would be if the property is required to be sold publicly or if the property has a lot of interest. In this instance, the seller is unlikely to accept a pre-auction offer as they will be confident that competitive bidding on the auction day will produce a better result.
How to submit a pre-auction offer
If you are really interested in a property for sale by auction, then making a prior offer is a great idea!
There are a few factors to consider before doing so, to ensure you are in the strongest position for the offer to be accepted.
Due Diligence
Before making a pre-auction offer, it’s critical that you perform your own due diligence including viewing the property and thoroughly inspecting the legal pack.
Finances
Pre-auction purchases are subject to the same terms and conditions as a purchase on the day of auction, so you will need to ensure you have your finances in place whether that’s cash, a mortgage or loan.
Speak to the Auction Team
Take the opportunity to speak to the auction team, asking any questions you have about the property, as well as checking that the seller is open to pre-auction offers.
Price is key!
Remember the guide is just that – a guide. It is not necessarily the price that the seller is willing to sell for.
The appeal of an auction day for a seller is the competitive bidding that helps to drive up the final sale price.
A pre-auction offer would therefore likely need to be at the higher end of the guide or in excess to be considered.
What if your offer isn’t accepted?
If your offer isn’t accepted because it is too low and you can’t increase, it is still worth bidding on the day of the auction – you could end up being the winning bidder!
Are you looking for your next investment, DIY project or family home?
Start your search at auctionhouse.co.uk
