Hello All,
I have a friend who is interested in buying a property that is due to be sold at auction in late september. When looking at the property the realestate informed him that the owner will accept offers prior to auction. He has decided to make an offer for the property and contacted the realestate agent to tell him such and also informed the realestate that he will be making it subject to finance and building inspection. The realestate agent told him that this was not possible because the property is scheduled for auction and therefore any prior offers have to be as per auction rules.
Is this the case or is the agent talking rubbish?
I was under the impression that auction rules only apply if offers are made within 3 days prior to or after the auction date!
Thanks in advance.
Craig
Auction rules apply as soon as the contract has been delivered to the seller of the property. Auctions require you to have finance prior to bidding, as a bid is an offer to buy.
However all offers must be put to the client, it is illegal not to, but they cannot hold the property on an offer without a contract. The agent is not talking rubbish. After all, he/she doesn’t get paid til he/she sells the property, and well, we all need money, so they will be trying their hardest to sell the property.
My advice is to suggest to your friend to find pre-approval and if they are truly interested in the property, get the building inspection completed before you place an offer
Hope this helps!
Geoffrey
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