When searching through auction listings, there may be a particular property that’s caught your eye. For whatever reason, you really don’t want to wait until the auction day so you may be wondering — can you buy a property before it goes to auction? Doing so would not only mean that you wouldn’t have to compete with other bidders but you’d own the property much sooner. So is this a possibility?
Can you buy a property before it goes to auction?
Yes, buying a property before an auction is possible. Not all sellers accept pre-auction offers and may stipulate that their properties have to be sold publicly. But many do consider offers that are put forward to them before the auction day. If you want to know whether the seller of a particular property will consider pre-auction offers, just ask the auctioneer.
Why buy before auction?
There are a number of advantages to buying a property before an auction. For a start, you’re not competing against other bidders during the auction. Doing so not only drives the price higher but reduces your chances of being the successful bidder. You may be able to get the property for a lower amount than the one that would have to be your maximum bid. If the seller accepts your offer, you’ll become the owner of the property a lot faster than if you have to wait for the auction day.
Prepare for your auction purchase before making an offer
Just as you would before bidding on a property during an auction, you need to make adequate preparations before making a pre-auction bid. This is because the auction terms and conditions still apply if your offer is accepted.
This means that you need to carry out your due diligence on the property. For example, viewing the property, researching the area and prices of similar properties and checking the legal pack. You also need to make sure that your finances are in place, whether you’re a cash buyer, want the flexibility of a bridging loan or are using a mortgage to buy the auction property.
Submit your offer
Once you’ve decided what you’re prepared to offer for the property, you can submit your offer via the auctioneer. It should be in excess of the guide price or at least at the higher end of it. The seller may want to negotiate so be prepared for that. If you can complete faster than the standard auction timescale, let the auctioneer know so that they can convey this to the seller. A faster transaction may sway the seller into accepting your offer.
If your offer isn’t accepted and you’re unable to negotiate to a higher amount, don’t lose heart. You can still bid on the property during the auction. If there’s not much competition or your maximum bid amount is higher than those of the other bidders, you may still be able to secure the winning bid.
Be ready for a fast completion
If your pre-auction offer is accepted, you need to act quickly as the auction rules still apply. The property will be removed from the auction listing once the exchange of contracts has taken place. This may be immediately if the traditional auction method applies, with completion following in 28 days. If you stated that you want a faster completion time, then be sure to meet that time frame.
We can arrange your finances so you can confidently buy before an auction
Before making a pre-auction offer, you need to have your finances in place. Unless you’re a cash buyer, you’ll likely either need a mortgage or a short-term loan, such as bridging finance. We can arrange this for you so that you can make your best offer to the seller with confidence. Just give us a call on 01322 907 000 and get ready to buy the property you want before it goes to auction.