Making an Offer Before Auction
Let me share a little secret with you…
Many of the best property deals never make it to auction day.
They’re snapped up quietly beforehand by savvy buyers who know how to negotiate strategically — and decisively.
In today’s competitive property market, especially in hot suburbs where listings get snapped up quickly, waiting until auction day could mean missing out altogether.
That’s why understanding how to negotiate a successful pre-auction purchase can give you a serious edge.
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Can you buy a property before it goes to auction?
Buying before an auction can sometimes be more nerve-wracking than attending the auction itself.
When you are standing amongst the crowd of bidders, you can clearly see your opposition and what price they’re prepared to pay.
I find auctions a transparent selling method, which if you are experienced, can give you the upper hand.
However, a recent purchase the team at Metropole made for a home buyer brought to light just how stressful putting your cards on the table before the big event can be.
Presented with an attractively renovated townhouse that was scheduled for auction, but was going to sell two weeks earlier because the vendors had received an acceptable offer, we were put under pressure from the selling agent to make a move or lose out.
Making it clear that if there was no other offer forthcoming, the property would be sold, the agent created a sense of urgency that any layman would find daunting,
At this stage, our clients, a young married couple, had not managed to view the property so I bought a little time – enough to get them through for an inspection and as I guessed, they fell in love with the home because it suited their family’s requirements down to a tee.
Pre-auction offer conditions
I asked the agent to clearly spell out his agency’s specific rules of engagement when properties are sold before the auction and as one would expect, the terms and conditions were predominantly in the vendor’s favour, including a 10% deposit, unconditional terms and specific settlement date to meet the vendor’s purchasing requirements.
Additionally, our offer had to be in writing and presented by no later than 5 pm the next business day.
Whilst I wasn’t privy to the specific offer that had already been made, I was advised that it was at the top end of the quoted price range.
However, having thoroughly researched the area and the comparable property values along with recent sales, I knew the property was worth more than the top end of the quoted price range.
With this information, we established a ‘walk away’ price and decided if it was exceeded, we would get on with the property search and not dwell on what could have been.
Essentially, we were limited to making our best offer and if it happened to be more than the first buyer then, without our offer being disclosed to them, they would have a right of reply
However we would not be afforded the same luxury, so to stay ahead of the game we calculated how much the other interested party might go up to and hopefully make our offer more attractive, yet not too excessive for the property’s value.
Note: This is what I call ‘flying blind’ and to get the best possible deal and beat out the competition, the right market knowledge and buying strategy is critical to giving you an edge.
However we would not be afforded the same luxury, so to stay ahead of the game we calculated how much the other interested party might go up to and hopefully make our offer more attractive, yet not too excessive for the property’s value.
The only thing we kept up our sleeve was that no one knew what we were prepared to offer right until the 5 pm deadline.
I delivered the contracts at 4:59 pm and was advised we had the highest price on the table.
I had a coffee and waited about 15 minutes to hear the outcome as the offers were presented to the vendor, who was inside the agent’s ready to sign a contract.
So let’s look at how and why you can buy a proeprty before auction.
1. Understand Why Some Sellers Want to Sell Before Auction
Not every seller wants the drama of auction day. In fact, some would rather avoid it altogether.
Maybe they’re nervous. Maybe they need a quick sale for financial or personal reasons.
Or maybe they just don’t like the uncertainty.
Whatever the case, motivated sellers can often be persuaded to accept a fair pre-auction offer — especially if you hit the right emotional and financial notes.
But remember: timing and strategy matter. Come in too early or too soft, and they might just wait for auction day. Come in too late, and someone else might already have sealed the deal.
2. Get the Agent on Your Side
Real estate agents don’t just work for the seller — they’re also key gatekeepers to the deal.
Treat the agent with respect, build rapport, and don’t play games.
Be upfront about your interest, ask good questions, and make it clear you’re a serious buyer with your finances in order.
If the agent believes you’re genuine, ready, and easy to work with, they’ll be more inclined to give you insights about the vendor’s expectations, what kind of offer might be accepted, and if anyone else is circling.
Remember, agents want to sell the property — and they like clean, straightforward deals.
3. Do Your Due Diligence Early
It might be considered ‘flying blind’ to make a competitive offer against another potential purchaser when trying to secure a property prior to the auction, but that shouldn’t mean you have no idea as to the price you’re prepared to pay.
The best weapon when it comes to negotiation in real estate is knowledge.
Know the market, know the value of the property in question and armed with that power if it’s the right property – and especially if you’re looking at buying your home – don’t be scared to put your best offer first.
There’s no point risking losing the home of your dreams just because you wanted to nab a bargain.
But you should also be prepared to walk away if the price is too high.
Having said that, in today’s hot property markets, it would be silly to lose the “right” property for a few thousand dollars.
It’s very likely that you’ll have to pay that plus more in a few months’ time.
In other words, the best negotiation tactic I know is to end up purchasing the property, not trying to be overly smart and try and nab a bargain.
4. Make a Strong, Compelling Offer
Forget the lowball.
In a strong market, a cheeky offer won’t just be ignored — it could offend the seller and shut the door to further negotiations.
Instead, lead with your best foot forward. Offer a fair price — possibly even a little more than you’d ideally like to pay — if it means avoiding the unpredictability of an auction.
Also, think beyond price. A bigger deposit, shorter settlement, or flexible terms could make your offer more attractive.
You’re not just negotiating dollars — you’re negotiating peace of mind.
5. Create a Sense of Urgency
If you’re going to make a pre-auction offer, you want the vendor to act fast — before other buyers come out of the woodwork.
One of the best ways to do this is by making your offer time-sensitive.
For example: “This offer stands until 5pm tomorrow — after that, I’ll be continuing my search.”
This kind of firm deadline, especially if your offer is strong and you’re ready to move, can push a seller to act decisively rather than take the gamble of waiting for auction day.
6. Don’t be forced into a “Dutch auction”
A “dutch auction” is essentially where two or more potential purchasers end up making “blind bids” prior to the property going to auction.
Having no idea how much the other party is offering, the selling agent will tell you that they have put in a higher amount and ask if you’re prepared to increase your offer.
This can go back and forth a number of times, depending on just how far each party is prepared to go.
Dutch auctions often push the price of a property beyond reason as emotions get the better of unwitting participants.
Again, the key is to walk away when you reach the limit you set yourself.
7. Be prepared to lose
While no one likes to consider themselves the ‘loser’ in any sort of negotiation campaign, it’s far better to walk away and live to fight another day than over-commit to a property you’ve become emotionally blinded by.
This comes back to tip number one – if you know the true value of a property and set a limit on what you’re prepared to pay, make sure you stick to your plan.
After all, there are plenty more “fish in the sea” and by losing gracefully, you just might find you’re a bigger winner the next time around.
Final Thoughts
Buying before auction isn’t about luck — it’s about strategy.
Yes, it requires confidence. Yes, you need to be well-prepared. But with the right approach, you could save yourself the stress of auction day and secure a fantastic property on your terms.
And remember — don’t go it alone.
At Metropole, our team of buyers’ agents know how to navigate these deals, speak the language agents understand, and negotiate from a position of strength.
Want to avoid the auction chaos and secure the right property at the right price?
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