Auction properties - can you make an offer before the auction?

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My parents have seen a great house they'd be interested in, but it's an auction property.

They're a bit cautious and don't want to do auctions - it's too scary for them iykwim. I wondered of they might be able to put in an offer via the owners or something? Is this ever an option?

Be grateful for any advice, thanks x

From my understanding of it, you exchange straight away. Therefore all monies would need to be in place and most certainly the deposit. I would imagine they would accept cash or a bankers draft. I think there is something like a buyers pack you can request. It would be advisable to get a survey done prior to offer/auction too.

You can but probably not worth it.

Just bid at the auction. Wait until bidding slows down and the auctioneer gets to calling for the final bids - then if the last bid price is below you planned offer just stick up your hand.

If it does not reach the reserve price - just go and talk to the auctioneer afterwards.

Am pretty sure you can. We offered on a house before an auction. It wasn't accepted and we then got it for less at the auction. Same thing with my parents.
If the offer isn't accepted they should def go to the auction. My DH was nervous but quite enjoyed it in the end!

Much more likely to get it for less at auction since so few people have money in place and are therefore excluded (nb: no point them bidding if they are not cash buyers as it will be unlikely they can get mortgage through in time - completion is generally four weeks but sometimes less. They don't have to pay cash but have to have funds - auctioneers will require photo ID so that they can trace them if cheque bounces.)

Thanks, will pass it on! It'd be perfect for them - they've been looking for ages.

One more thing - do you have to pay cash?

Wow, thankyou for all these thoughts, really helpful - I'll talk to mum today and see if she'll have a go. I'd love to go to an auction but she's much more cautious!

I think they could sell their place v quickly as it's a student area and they have a landlord after it - but it's a good point about the survey - mum actually said'If it's for auction it must have something structural wrong'. I told her that it might be any number of reasons, but couldn't think of many..!

Are you saying that they would have to sell their property in order to buy the auction one? In that case, I don't think it is worth trying. They need to have 10% to put down on the day of the auction and be able to complete (usually) four weeks later. Very unlikely they will be able to do that unless they sell their home in the same auction .

usually they are auction cos they need selling quickly....

reposessions
probate sales
where people have gone into nursing care
not selling in estate agents
water board / police etc selling off 'tied' houses

PLUS builder only buys (structurally unsound)

the ones I've been to need 20% deposit on the hammer (so immediate) and completion 4 weeks later.

If they don't want to attend the auction, they can put a bid in by letter, stating their maximum bid.

We sold out house in England like that, a couple were desperate to buy it but were scared of going to the auctioon, so they spoke to the auctioneers who told them what to do. They advised them on the whole process start to finish.

The reason we put it to auction is that we had left the country and needed a v v quick sale.

Which is exactly what we got, at the price we wanted too.

Ah thankyou. Yes this all helps.

I am fairly sure they could get access to equity through my grandmother, who has money in the bank as it were...it goes to auction next month, so I've told mum she can make an offer in advance.

She's more anxious about actually having to think seriously about moving house, I think - it's a big upheaval! They've been talking about it for yonks though.

I'm very glad it isn't always a structural problem. I have got some good ammo to convince her with now, thanks

I actually rang this agent thing this morning, they 'help their clients put in an offer and get it for below the market value' and you pay them a fee for this.

Not sure if we need these people's services or can go straight through the auctioneer?

If you think you have funds in place, go straight to the auctioneer (but I would still try the auction ).

If you think you have funds in place, go straight to the auctioneer (but I would still try the auction ).

Thanks Lala

Have rung auctioneer now and she said you can submit an offer directly to them, no need for silly offer-assistant-agency thingy with their enormous fees!

Ooh this is so exciting!

InternationalFlght - I don't think you need an agent to 'help' you put in an offer. So called 'finding' agents do not get houses below market price. You are right to be about that suggestion.

The market price is the market price that buyer and seller agree. A finding agent does not sprinkle magic fairy dust on your behalf by just picking up the phone. Although they like to pretend they do. You can do exactly the same thing yourself without paying a fee.

Just go straight to the auctioneer and talk to them. As MrsMills says your parents could put an offer into the auctioneer beforehand in writing. However, my worry about that method is that if your parents make a 'high' offer the auctioneer can then just stand there picking pretend bids off the wall at the auction until he/she gets up to the high price your parents offered and then knock it down to them.

If your parents make a 'low' offer which is below the vendor's true reserve price or below any real bids received at the auction their offer will not be accepted anyway.

Putting an offer in writing rather than bidding at the auction itself therefore almost inevitably will lead to overpaying somewhat (which of course is what the auctioneer and vendor hopes for) because, in effect, your parents offer in writing will just become the vendors' new 'higher' reserve price. They will then run the auction anyway to see if they can get even more from another bidder.

Savvy auction buyers such as developers always go along and stand at the back of the auction room to see who is really bidding and then make their offer right at the end or even make an offer after the auction.

It is of course a tough thing to do if you have never had experience though. Would you be prepared to do it for your parents?

As tvfriend says it can be enjoyable providing you do not get carried away and have clear instructions from your parents.

Thanks Betadad. That's really useful. I didn't realise it'd still go to auction whether they put in an offer or not

I'd be more than happy to bid for them...Homes under the hammer is my favourite programme, but I often have to switch it off due to the frustration of not being in that line of work! I'd love to get my hands on some of the houses on there.

I don't think they'd trust me to do it, but I'll ask anyway. If they want to stop at a certain price there's no harm in going along.

This place has its fair share of developers, so I'd guess it'll go for more than the guide price. It looks like it needs updating and so on but is in a lovely street and is quite large.

I'll let you know how we get on. Thanks again for all the info.

..btw I think it was the way that the teenage 'Jenna' was so chatty when she wanted me to sign up for their 'lifetime membership' that convinced me I didn't really need what she was selling...