If you’ve seen a property you like, can you secure it before it goes to auction? This blog discusses the steps you’ll need to take to strike a deal with the vendor before the property hits the auction room.
Buying property at auction doesn’t always mean waiting for the hammer to fall in the auction room. There's growing flexibility around auction events in today's market, where buyer numbers are down and vendors are keen to sell. If you're prepared and strategic, you might strike a deal before the bidding even begins.
Below, we walk you through how to prepare so that you’re ready to secure a deal with the vendor and avoid getting bid-up:
1. Know Your Numbers and Your Strategy
Before you even think about making an offer, you need to be clear on:
- What the property is worth to you
- How much you can afford to spend
- Your exit strategy (e.g. refinance, rent, flip)
Calculate the full cost of purchase, any renovation work, and your expected return. Once you've done that, set a firm limit and stick to it; even a small overbid can eat into your profit margin!
2. Be Ready to Act Quickly
If you’ve found a property you want and are confident in your numbers, you can approach the auctioneer before the auction event. For example:
“You’re guiding this property at £100,000. I’m offering £105,000 and I can complete the deal today.”
Auctioneers are obliged to share all offers with the vendor. If the vendor agrees, the sale can be completed under the hammer before the auction takes place. This means:
- You avoid competitive bidding
- The vendor avoids the risk of the property not selling
- The completion clock starts immediately
3. Ask for Flexibility on Completion
If you need more time to complete, say, 36 or 56 days instead of the standard 28, you can include that in your offer. Many vendors are open to negotiation, especially in a slower market. From the start, it’s important to be clear and upfront about your plans with the vendor.
4. Keep Communication Open
Auction purchases aren’t always smooth sailing. If issues arise with financing or legal matters:
- Discuss these with your solicitor
- Keep your broker informed
- Communicate openly with the auctioneer
Vendors are often willing to offer extensions if they understand the situation. Open communication can make all the difference between a deal falling through and a successful purchase.
5. Understand the Flexibility Around Auctions
There’s a common myth that auctions are rigid and inflexible. In reality:
- You can make offers before, during, or after the auction
- Vendors are increasingly open to off-market deals
- You can negotiate completion timelines and terms
What’s fixed is the unconditional nature of the sale under the hammer. But outside of that moment, there’s more room to manoeuvre than many buyers realise.
Getting started at auction
In today’s price-sensitive market, striking a deal with the vendor before the auction can be a smart move. It requires preparation, clarity, and confidence, but it can save you from bidding wars and give you greater control over the purchase process.
Speak to an expert
We can help you with the first steps in the process. Talk to us about your auction plans, and we can help you establish a realistic budget to ensure a smooth purchase, call us on 0345 345 6788 or submit an enquiry here.
