Is It Better to Make an Offer or Wait for the Auction?

cropped shot of people exchanging sackcloth bag with dollar sign and house model

If you’re interested in a property listed for auction, you might be wondering whether to submit an early offer or wait for auction day to bid. This decision can impact the final price you pay and your chances of securing the property. In this guide, we’ll break down the pros and cons of both approaches to help you determine the best strategy when buying real estate through SellWithZero.

Making an Early Offer: What to Expect

An early offer is when you approach the seller (or their agent) with a direct bid before the auction takes place. If the seller finds your offer compelling, they may choose to accept it and cancel the auction.

Pros of Making an Early Offer:

  • Avoid competition: You can secure the property without going up against other bidders in a high-stakes auction.
  • Less pressure: Auctions can be fast-paced and emotionally charged, whereas a private negotiation allows for careful consideration.
  • Potential for a lower price: If the seller is motivated to sell quickly, they may accept an early offer rather than risk an uncertain auction outcome.

Cons of Making an Early Offer:

  • You might overpay: Without auction-driven competition, you may submit an offer higher than what the property would have sold for at auction.
  • The seller may reject or counter: Many sellers prefer to test the market through an auction, meaning they might reject an early offer unless it’s exceptionally strong.
  • Missed opportunity for a better deal: If bidding is low at auction, you might have secured the property for less than your initial offer.

Waiting for the Auction: The Competitive Edge

Choosing to wait for the auction means participating in a live, transparent bidding process where the highest bid wins.

Pros of Bidding at Auction:

  • Market-driven price: You pay what the property is worth in the open market rather than negotiating blindly.
  • No risk of overbidding too early: If competition is lower than expected, you might win the property at a lower price than what you would have offered pre-auction.
  • A fair and transparent process: Auctions eliminate private negotiations and back-and-forth games.
  • Defined timeline: You know exactly when the property will sell, making it easier to plan.

Cons of Bidding at Auction:

  • Higher competition: If the property attracts strong interest, bidding can push the price higher than expected.
  • More pressure: The fast-paced nature of auctions can be stressful, especially for first-time bidders.

Which Option is Best for You?

Your decision should be based on your priorities:

  • Do you want certainty? Making an early offer can give you peace of mind, but you may need to offer a strong price.
  • Do you thrive in competition? If you’re comfortable bidding in a live setting, the auction might allow you to secure the property at a great value.
  • Are you confident in the auction’s outcome? If you believe demand for the property will be low, waiting for the auction could lead to a better deal.

 

What Happens When a Pre-Auction Offer is Submitted?

At SellWithZero, buyers may submit one (1) pre-auction offer for the seller’s consideration. If the seller rejects the offer, the buyer must wait until the auction to place another offer by bidding. If the seller accepts a pre-auction offer, all registered bidders will be notified and given the chance to give their best and final offer. The offer amount will remain confidential to other registered bidders, and the registered bidder with the highest final offer will purchase the property.

 

How SellWithZero Helps Buyers

SellWithZero’s real estate auctions powered by the Blue Box Auction Gallery Platform offer a fair and transparent way to buy property without the hassle of traditional negotiations. Our process ensures:

  • Fair market pricing – Auctions reflect the true market value through open competition.
  • Defined sale date – No waiting for lengthy negotiations; the property sells on auction day.
  • Transparency – Everyone has an equal chance to bid and win.

Final Thoughts

If you’re looking for certainty and are willing to pay a premium for peace of mind, making an early offer may be the right choice. However, if you’re comfortable with competition and want the market-driven price, waiting for the auction can be a strategic move.

At SellWithZero, we offer a seamless auction experience that empowers buyers to bid with confidence. Whether you choose to make an early offer or wait for auction day, we’re here to help you navigate the process.