first_imgHow to buy a property before it goes to auction.YOU love the house. You’ve got the finance sorted. You want it now. So, why wait until it goes to auction?More properties are being sold prior to the planned auction date as it becomes more common for potential buyers to make an offer on a home before it goes under the hammer.But the Real Estate Buyers Agents Association of Australia (REBAA) has warned of the importance of understanding the rules. GET THE LATEST REAL ESTATE NEWS DIRECT TO YOUR INBOX HERE An auction in action. More properties are being sold prior to auction. Image: AAP/Troy Snook.Here are some things to consider before making a pre-auction offer:.1. Prepare to have competitionREBAA vice president Cate Bakos said too many buyers mistakenly thought that by making a pre-auction offer, theirs will be the only offer presented to the vendor. “If any prior offers in the vendor’s acceptable selling range are received prior toauction, the agent is likely to inform every other buyer who has expressed interestin the property that the property will sell prior to auction,” she said. Ms Bakos said sales agents were well within their rights to present all offers to thevendor as they were being paid to act in the best interests of their clients. More from newsParks and wildlife the new lust-haves post coronavirus19 hours agoNoosa’s best beachfront penthouse is about to hit the market19 hours ago2. Consider the sale processSome agencies have a published sale process, while others determine the process based on the number of competing buyers.Some let the vendors decide and others have their own individual preferences for handling competition. A large crowd gathers at the auction of a home. Image: AAP/Troy Snook.3. Boardroom auction the following dayThis is where interested buyers meet at the agency marketing the property and bid against each other in a boardroom where the auction is ‘simulated’ and usually hosted by an auctioneer. 4. Round-robin styleUsually undertaken over the phone. The agent commits to going around to each buyer, fully disclosing each incremental offer until the last man is left standing. THE BRISBANE HOME WITH A CHEESY SECRET CLASSY DESIGN FOR FAMILY MANSION SELLS FOR ALMOST $6M 5. Best and highestA secret-ballot style negotiation where buyers are given one deadline to submit their best and highest offer. A buyer can sometimes get lucky and buy at their best and highest price when they would most likely have been outbid at auction, but in most cases, it is a method where remorse or disappointment strikes, Ms Bakos said.last_img

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