Three in ten homes offered at auction sold before
22-Feb-2010
Just because a home is advertised for auction does not mean you have to wait until the day of the auction to make an offer for it.
Through the estate agent you can make a pre-auction offer to the vendor if you have an interest in buying the home.
REIV research shows that in the past three weekends around three in 10 homes offered at auction and then sold were actually sold to a pre-auction bidder.
For the last three years, this kind of sale result occurred in around two in every 10.
This means that in the current market it can be important to consider making a pre-auction offer to avoid missing 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 until 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 until the auction.
It is also always advisable to obtain legal advice before signing the contract of sale.
Want the best advice about investing in property? Contact Warwick Brookes at the award winning Domain Property Advocates on 9853 5599.
