An auction sets a deadline for a property to be sold as well as creating competition.

Auctions are often used by sellers who want to offload their property quickly, without giving the impression that they are after a speedy sale.

So if the vendors are really after a speedy sale, they may be open to pre-auction offers as well.

Properties that are being sold by auction may be open to offers before the day.

Here are some tips from RealRenta for negotiating a Pre-Auction purchase:

• Do your homework and find out what the market is like and what is the value of the property in question. Be prepared to walk away if the price is too high.
• Don’t get drawn into a “Dutch Auction”. Sometimes Agents will tell you another party has put in a higher bid but won’t tell you what it is. This can push the price of the property beyond reason.
• Make your offer at the last possible minute, waiting is a great weapon in negotiations as it will make the other party sweat and gives you the upper hand.
• Keep your cards close to your chest about how much you are prepared to pay for a property, so that an agent can’t use your information, to sway another buyer to outbid you.

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