Can I Sell a Property Before Auction Day?
Once a property has been listed for sale in an auction, it is possible that you might receive pre-auction offers. Unlike in many sales processes, this is permitted and allowable. In fact, as your auctioneer representing your interests, we are obliged to present you with the offer and allow you to decide how you would like to proceed. But should you sell a property before auction day?
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The right decision will depend on several factors, not least an assessment of the interest in the property and how likely the auctioneer thinks you are to receive a higher offer or competitive bids above your reserve price on the day.
Let’s look at how pre-auction offers work, tips to ensure you make informed decisions, and what happens if you decide to go with an offer and remove your property from auction.
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Key Takeaways: Selling a Property Before Auction Day
- It is legal and permitted to sell a property before auction day if a pre-auction offer is made through the auctioneer and meets the required standard - the auctioneer is obliged to present all bona fide offers to the seller.
- Any pre-auction buyer should be prepared to exchange contracts within 24 hours of acceptance, with financing in place, to provide the same certainty as an auction sale.
- Pre-auction offers are typically lower than the price achieved through competitive bidding on auction day - sellers should weigh this against any urgency to complete early.
- Offers made directly to the seller (such as unsolicited letters) should be treated with caution and directed to the auctioneer for proper verification.
How Do Pre-Auction Offers Work?
Any legitimate pre-auction offer should be made to the auctioneer rather than directly to you. This is an important point because, as property auction specialists operating under The Property Ombudsman code of practice, we follow a series of controls to verify the authenticity of registered bidders and will apply the same process to any pre-auction bidder.
It is unwise to consider an offer that is made directly to you - especially if this arrives in the form of a letter posted through the letterbox since these are commonly scams.
Another possibility is that by taking a property off the market, you are exposed to the risk that the seller does not follow through, will waste a considerable amount of time, or does not have the funds in place to complete the transaction as quickly as would have been possible at auction.
Many auction property sellers are keen to finalise the sale as quickly as they can, with auctions often facilitating a final transfer of funds within as little as a month. Therefore, we would never recommend removing a property from sale on the premise of a forthcoming 'guaranteed' price.
Any pre-auction buyer should be prepared to exchange contracts within 24 hours, indicating that they have a serious intent to buy, with financing readily available, rather than attempting to take the property off the market.
What Happens if I Accept an Offer on My Property Before Auction Day?
Fast completion should be a core objective, ensuring you don't accept an offer that turns out to be false or find yourself in a position with a stalling buyer who will then attempt to reduce their offer.
If you receive an offer that you and your auctioneer are happy with and that presents a good financial outcome, you can decide to go ahead. The sale will follow the same terms and conditions as agreed with the auctioneer, providing assurance of professional processing and checks before the legal paperwork is completed.
The standard timeframe is for contracts to be exchanged is within 24 hours, although this may sometimes be extended depending on the nature of the transaction and your wishes.
Rejected offers will not make an impact on your auction listing. You may, however, wish to use the offered price to reassess your reserve and guide prices.
Is it a Good Idea to Accept a Pre-Auction Offer on My Property?
We advise each seller on a case-by-case basis. In some circumstances, a verified and attractive pre-auction offer could be a great resolution. In others, it is the opposite and may be accompanied by a recommendation to turn the prospective buyer down for one of numerous reasons..
Clive Emson will evaluate any pre-auction offer made before making recommendations, such as:
- Confirming the buyer is a genuine bidder with cash funds available and has been verified through the bidder registration process.
- AnalysingAnalysing the views against the property listing, response to marketing and number of legal packs downloaded to determine whether there is a good likelihood the property will invite competitive bidding at auction - resulting in a higher final sale price.
- Looking at the number of potential buyers who have attended or registered to attend in-person viewings and the number of newly registered bidders who have submitted their details to participate in the scheduled auction.
- Discussing your objectives and response to help you make confident decisions about the right way forward.
When Should I Accept a Pre-Auction Offer?
Generally speaking, offers made before an auction are of a lower value than those achieved on the day. Auction bidding often becomes competitive, and a pre-auction buyer will usually be trying to secure the property for a lower amount than they would expect to pay at auction.
The speed and certainty of an auction mean that the time saved by accepting an early offer would be minimal, and it would be better to wait for the auction to achieve the highest possible price.
However, there may be some scenarios where you, as the seller, are keen to accept the offer or where this appears to be in your interests. We would always advise you to discuss the situation with the auctioneer and gain insights from their experience before moving forward.
Receiving an Offer Before Auction Day From a Preferred Buyer
Preferred buyers may be friends or family, associates or members of the community whom you would like to sell your property to in preference of an unknown party. Under National Association of Property Buyers guidelines, any offer made through a regulated auctioneer must be formally presented to you with a recommendation. It is fairly common to hear from sellers who are conscious that a neighbour has expressed an interest in the property but has not made any steps to progress this.
Selling at auction means that if a preferred buyer is committed to the purchase, they have a finite date by which to register as an auction bidder or submit an offer to the auctioneer.
Exchanging contracts on a good offer before auction day means the property is withdrawn from the auction, although the deadline in place means there is no risk that the transaction will drag on or that the property will remain unsold if the preferred buyer does not come forward.
Related reading: Should I Auction My Home? | What Happens to Properties That Don't Sell at Auction?
Accepting a Pre-Auction Offer for Speed
Property auctions are completed very quickly - within 20 days in most cases. However, if you need to sell your property as quickly as possible, and a difference of a few days or a week would be a decision-making factor, you might accept an offer regardless of whether you could achieve a higher price at auction.
Although the sale price made for a direct sale transaction is almost always beneath that made during an open auction, this could be a compromise you wish to make.
Looking to sell your property as quickly as possible? Tell us a few details about your property here and we'll give you a FREE appraisal - find out how much your property can sell for and how quickly!
Speak to Our Auction Specialists
If you're considering accepting a pre-auction offer or would like advice on whether it's the right move for your property, our team is here to help. With over 35 years of experience in land and property auctions across the South of England, we can review your options and guide you towards the best outcome. Call us on 01273 504232, email sam@cliveemson.co.uk, or get in touch via our contact form.
Frequently Asked Questions
Can a seller accept an offer before auction day?
Yes. It is possible and permitted to accept a pre-auction offer, provided the offer is submitted through the auctioneer. Clive Emson is legally obliged to present all bona fide offers to the seller. The sale will proceed on the same terms and conditions as an auction sale, with contracts typically exchanged within 24 hours of acceptance.
Are pre-auction offers lower than auction day prices?
In most cases, yes. Pre-auction buyers are often trying to secure a property at a lower price than they would expect to pay on auction day. Competitive bidding frequently drives prices higher than the reserve, so accepting an early offer may mean settling for less than the open market could achieve.
What happens if I reject a pre-auction offer?
Rejecting an offer has no negative impact on your auction listing. The property remains listed and will proceed to auction as normal. You may wish to use the offered price to reassess your reserve or guide price if the offer gives you useful market intelligence.
How do I know if a pre-auction offer is genuine?
Any legitimate offer should come through the auctioneer rather than directly to you. Clive Emson will verify the buyer's identity and confirm they have financing in place before presenting any offer to you for consideration. Unsolicited offers made by letter or direct contact should be treated with caution.
How quickly does a pre-auction sale complete?
A pre-auction sale follows the same contracted timeline as an auction sale. The buyer is expected to exchange contracts within 24 hours of acceptance and must have funding in place to complete. Completion typically takes place within 20 working days, offering the same speed and certainty as a standard auction outcome.
Can I sell a property at auction that already has an interested buyer?
Yes. If you have a preferred buyer - such as a neighbour or family member - who wants to purchase your property, you can list it at auction to create a deadline for them to act. They can submit an offer before auction day or register as a bidder and participate on the day. This approach gives you certainty while allowing the preferred buyer a defined opportunity.
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