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It does make sense, but I still think you may pay more prior to auction that you could get it at auction. My mum was worried recently when she sold a house that the purchasers' bank would not value it up enough and the contract could fall over. I put the concern to our loan broker. He said...

Do you mind if I ask will you be going to the auction? And if so, why not put in whatever offer you want to before, but if you don't get it prior to auction, why not go and bid. You might just save yourself some money.