Just because a home is advertised for auction does not mean you have to wait ‘til the day of the auction to bid for it.
Through the agent you can make a pre-auction offer to the vendor if you have an interest in buying the home.
REIV research shows that around one in six homes advertised for auction actually sells before the auction starts, so a pre-auction offer may help ensure you don’t miss out on buying the home you want.
With that in mind there are a number of advantages in making an offer, even if the offer fails.
A successful offer can allow you and the vendor to avoid the auction itself. It is also the case that even if your offer is unsuccessful, the vendor is less likely to sell to a higher bidder without giving you another opportunity to make an offer.
If you do make an offer it has to be an attractive one that gets the vendor’s attention and convinces them not to wait ‘til the day of the auction.
There are a number of things you can do to make the offer attractive: first, put the offer in writing; secondly, attach a time limit after which the offer expires. In some cases presenting the offer with a cheque for the deposit can really show the vendor that your offer is serious and that they may be better off not waiting ‘til the auction.
It is also always advisable to get legal advice before signing the contract of sale.
