Read Time: 2-3 minutes
Pre-auction offers sound like a great way to secure a property before the competition heats up, but in reality, they create unnecessary panic and force buyers into rushed decision-making.
Too often, buyers feel pressured to scramble for urgent building reports, legal reviews, valuations, and LIM reports — all at once — skyrocketing costs and adding stress.
If you submit a pre-auction offer, you're forced into a timeline that works against you.
Rushing everything at once doesn’t just cost money — it increases the likelihood of making mistakes.
Why do buyers fall into the pre-auction offer trap?
Because agents and sellers love it.
But let’s look at it from the seller’s perspective.
When a property is listed for auction, sellers usually commit to a 3-4 week marketing campaign with multiple open homes. Their goal? Attract as many bidders as possible to drive up the final sale price.
Simply put, sellers have little incentive to accept a pre-auction offer when they’re aiming for a competitive auction environment. It’s a classic supply-and-demand game — why sell early to one buyer when they can have multiple bidders fighting over it?
That’s why pre-auction offers rarely work in your favor as a buyer. You’re rushing to pay more, while the seller is in no rush at all.
Instead of getting swept up in pre-auction pressure, take a step back.
✅ Do due diligence at your own pace. Order reports progressively — starting with deal-breakers like building reports before spending money on legal reviews, valuations and LIMs.
✅ Remember, urgency benefits the seller — not you. If they’re willing to accept a pre-auction offer, it’s likely the property would sell at auction anyway. You gain nothing by rushing.
✅ If you must make a pre-auction offer, don’t overcommit. Keep it strong but realistic, and be prepared to walk away rather than be dragged into a panic-fueled bidding war.
Pre-auction offers force buyers to:
🚨 Rush all due diligence at once, massively increasing costs.
💰 Pay for reports on a property they may not even win.
⚠️ Make decisions under pressure, often without negotiation power.
Unless you have a strategic reason to submit an early offer, don’t play the seller’s game. Take your time, do your due diligence properly, and avoid unnecessary panic.
