Should I make a pre-auction offer?

Buying property at auction isn’t for the faint-hearted.

The high stakes, the public spectacle, the adrenaline—it’s an experience many buyers would prefer to avoid if they can.

So, should you try to beat the crowd and make a pre-auction offer instead?

Well, that depends.

It depends on where you’re buying, the local market conditions, the number of active buyers in the area, and your budget.

Sometimes, it makes sense to act early. Other times, waiting might give you a better outcome.

Start With Some Market Research

Before diving in with an offer, take the time to understand how properties are selling in your target area.

• Are more homes being sold via auction or private treaty?

• Has this trend shifted recently?

• How are clearance rates tracking?

Auction clearance rates are especially telling.

If they’re falling that signals more nervous vendors. In turn, that makes them more open to pre-auction offers, as they chase the certainty of a sale before auction day.

In this kind of market, many sellers are understandably reluctant to roll the dice on auction day.

On the other hand, when there are plenty of buyers for every property going to auction and auction clearance rates are high, sellers feel more confident and reluctant to sell before auction.

Why Would a Vendor Accept a Pre-Auction Offer?

While auctions can be effective, they’re not without stress—especially for sellers. Here are some common reasons a vendor might be happy to sell before the big day:

1. They’re Nervous

Older vendors or those unfamiliar with the process may want to avoid the emotional rollercoaster of auction day.

2. They’re Under Pressure

Selling can already be a difficult time, but add in factors like divorce, illness, or the death of a loved one, and it can be overwhelming. You’re not taking advantage of people—you’re simply recognising their situation and offering them certainty.

3. They’ve Already Bought Elsewhere

Many sellers can’t afford to hold two properties. If they’ve already committed to another home, locking in a sale quickly becomes more important than holding out for top dollar.

4. There’s Low Interest in the Property

If the campaign isn’t drawing much attention, a decent pre-auction offer can be a lifeline.

5. The Agent Wants a Quick Sale

Yes, this happens more than people think. Some agents are motivated to move properties fast for their own reasons—targets, commissions, or limited time.

6. You Make a Strong Offer

If you bring an attractive, unconditional offer to the table, you could short-circuit the whole campaign.

But There Are Risks, Too

Let’s be real—buying before auction isn’t always the savvy move.

1. You Might Overpay

Without competition driving price discovery, there’s a risk of offering too much. Sellers often get excited by early interest and may reject reasonable offers in the hope of an auction day windfall.

2. You Could Boost the Seller’s Confidence

Sometimes, your early offer actually backfires—fueling the vendor’s expectations. They may decide to proceed with the auction anyway, emboldened by your interest, and now they’ve got your ceiling price in their back pocket.

3. You Might Miss a Bargain

In a cooler market, a property could pass in at auction and leave the vendor open to a lower offer. If you’d waited, you might have secured the same home for less.

This is the gamble of buying before auction—you won’t know how much competition there will be until auction day arrives. But if the property has lingered on the market, failed at a previous auction, or has a revised price guide, that’s a hint you may not be facing a bidding frenzy.

Want to Avoid Auctions Altogether? Use a Proxy

If auctions stress you out—or if you’re worried about bidding too high under pressure—there’s another option: let someone else do the bidding for you.

You can authorise a trusted friend or family member with auction experience.

Better still, hire a professional buyer’s agent who lives and breathes this stuff.

Of course, at Metropole, our team of buyer’s agents specialise in auction bidding. We love this part of the process and know how to keep cool when emotions run high.

Making the Right Offer

If you’ve done your research and decided to go ahead with a pre-auction offer, now comes the tricky bit—figuring out what to offer.

The sweet spot lies in knowing the local market.

Check recent comparable sales, look at the agent’s price guide or the Statement of Information, and if you can, get a valuation.

Your buyer’s agent (if you have one) will already have this data and more, giving you an edge in negotiation.

An Often-Overlooked Benefit

Here’s something people don’t talk about enough: buying before auction gives you a bit more flexibility.

You may be able to negotiate better contract terms—perhaps a longer or shorter settlement or special conditions that work in your favour. You might also benefit from a cooling-off period, which isn’t available when buying at auction.

Just remember: if you make the offer too close to auction day, the cooling-off period might not apply—check your local laws.

Final Thoughts

There’s no one-size-fits-all answer to whether you should make a pre-auction offer.

It’s about understanding the market, knowing the seller’s motivations, and being clear on your own budget and goals.

A pre-auction offer can help you avoid the stress of auction day, secure favourable terms, and potentially snap up a property others are hesitant to bid on. But it can also mean you pay more than you would have if you’d waited.

At the end of the day, the best strategy is one backed by research, patience, and professional advice.

About Brett Warren
Brett Warren is National Director of Metropole Properties and uses his two decades of property investment experience to advise clients how to grow, protect and pass on their wealth through strategic property advice.