Offer before auction

[Trebor]

When would you consider making an offer prior to auction?
A lot of houses seem to sell before auction in the area we are looking at.
My thoughts on that though is that it equals showing your hand way too early in the process; and give the vendor a reason to increase their reserve price.

Is a better strategy to have a B&P inspection, have the contract reviewed so that the REA will contact you if someone else makes an offer; and you are in a position to counter the offer?
Would the REA accept an offer without contacting other interested parties?

Thanks in advance for the advice.

 

[TMNT]

west sydney I presume???

 

[Trebor]

no - earlwood and surrounding suburbs

 

[Spades]

Trebor,Depends on the vendor/property and how much interest.
Doesn't hurt to ask rea if vendor is willing to accept an offer prior to auction or if said property has to go to auction.
Nothin' ventured,nothin' gained.
Cheers Spades.

 

[Jamie M]

I agree with Spades.

If they don't accept you're offer - than go to the auction. My clients do this all the time.

If you've been looking around for a while and you know that the property looks like a good deal - and ticks your boxes, than give it a go.

If you're worried about showing your cards prior to auction then keep your offer below your max. However, when offering before auction - it usually needs to be quite a strong offer to encourage them to accept.

Cheers

Jamie

 

[brahms]

The agent should be (I would expect) contacting all other parties in the event that the vendor will consider prior offers..

So in effect all you would be doing is bringing the date of the auction forward, but leaving behind the transparency afforded by the actual auction.

If there is interest from more than one party, its pretty hard to justify considering an early offer I'd have thought.