Do I put an offer in before auction?

Whether to put an offer in prior to an auction, bid at auction or hope it doesn’t sell at auction and negotiate after is always a tough dilemma.

Our team has got together to provide you with the pro’s & con’s considering the circumstances and will blog different scenarios over the next week.

Scenario
You want to put an offer in before auction and you know there is a lot of interest, you love the home. You put your offer in and the owner has decided that they will sell before auction.

In this scenario it will become a ‘blind’ auction. The agent then calls all parties and asks them to submit their offers before auction. There will likely be multiple offers due to the high level of interest.

The agent will collect all offers and present them to the vendor with the highest/best offer being accepted.

As the buyer you wish to know;

1)                  Is my offer the highest?
2)                  What is the other offers?
3)                  What if I’m just below another offer

The agent cannot disclose any of the other offers to any buyers and therefore these questions cannot be answered.

 Obviously there is only 1 person who buys the home and in this scenario you miss it.

 The agent contacts you and advises you that you have missed the home and there is no second chance.

 Your question to the agent is:

“How much did I miss it by or how much did it go for? When you find out it sold for a small amount higher than your figure you may feel that had you known the answers to all your previous questions you would have had a better chance of buying the home.

Our answer to this blog question ‘Do I put an offer in before auction? Is NO! don’t submit an offer before auction. Not unless other offers have been submitted before auction and you have been told it will sell before the auction, as should your offer not be acceptable to the owner you have now disclosed to them and the agent your price. We suggest you attend the auction as it is a transparent competition and you will know all the other offers and not miss it by a small amount with having the chance to reply with an increased bid.

Keep an eye out for our next blog with a different scenario on ‘Do I put an offer in before Auction? With the scenario based on minimal interest in the property.

Mark Sheppard
Auctioneer, Principal & Property Consultant
0411 476 460 
markshepprd.brockharcourts.com.au

Brock Harcourts Mile End Auctions during June

Auctions – the way to sell in this market!

Even the rain couldn’t dampen the spirits of first home buyers last Saturday. Any thoughts that we are in a recession would have quickly disintegrated upon the arrival of the crowd at Mile End for the auction of a unit at Falcon Avenue. The 25 bidder registrations came as no surprise, as there was a strong attendance at the open inspections throughout the campaign.

 I would challenge you to determine if this was luck. Two weeks ago two larger properties we marketed in a different price bracket that we auctioned – a character bungalow at Cowandilla and another in Mile End. Both attracted a large crowd and plenty of interest. Both of these homes were successfully sold, one achieving a record price. A comment from the auctioneer and the agent, Mark Sheppard the Principal of Brock Harcourts Mile End, could not have proved to be more true – “ladies and gentleman – it has been said that we are in a recession and the property market is in decline, we sure haven’t seen that today”.

It is a common misconception in the market place that auctions don’t achieve a good result. To achieve a successful outcome at auction, you must rely on more than luck and ensure that your agent creates the right atmosphere on auction day, which requires a lot of behind the scenes work that involves diligence, hard work, strong marketing and an agent that is willing to go that extra yard.

Marina Davydova

Call or e-mail , Mark or myself of Brock Harcourts Mile End,
for details of these sales or for a free appraisal of your home
M: 0430 297 994 E: marina.davydova@brockharcourts.com.au
M: 0411 476 460 E: msheppard@brockahrcourts.com.au