This is what you should consider when you get a pre-auction offer on your home

 
24-04-2018
In 2017, 27.3 percent of reported auctions sold prior, with slightly more than a quarter of vendors accepting an offer before auction.

From a vendor’s perspective, receiving an offer before auction can often feel as pressured and nerve-wracking as the auction day.

The art of separating emotion and negotiation is an essential skill set required for both selling and buying a home.

Choosing the right agent is a step in the right direction. It is important to have a trusted professional, one who is across market conditions and has clear communication with their clients.

The right agent should help guide your decision when faced with a pre-auction offer.

An auction gives an element of transparency. It allows all parties to decipher the price position and degree of competition by the number of registered bidders and subsequent bidding that unfolds.

It can be a troublesome decision when an offer is given before auction day. It is often hard to truly know the level of interest in a property.

On several occasions a prospective buyer has viewed the home once (often on auction day) and becomes the highest bidder. However, no one can predict when and if this will happen.

Assess the market to understand the true value of your home: having a figure that is in line with market expectation will help to educate and aid any pre-auction offers.

By conducting your own research and discussing with your agent you will be able to determine whether the offer is a competitive one.

Market conditions can sway the decision to accept or reject. When the market is performing well vendors are likely to find themselves with several pre-auction bids.

By placing an offer beforehand, buyers aim to avoid the risk of a highly competitive auction scenario.

A healthy offer before auction should be considered, particularly if it is above expectation. When market conditions are subdued buyer interest is likely to be low.

The potential buyer could be deterred from attending the auction if the pre-offer is refused with little or no negotiation.

If the home passes in at auction, the interested party will know their purchasing power, particularly if there are no other bids.

In the lead-up to auction day, your agent will provide the best gauge of buyer sentiment.

Irrespective of the market condition, success can often rely on the art of negotiation.