Deceased estate auction - can someone offer prior to auction?

Hi, this is my first post & potential property purchase, I have found a property I love and saved a deposit of 250k, the property is advertised $800,000 -890,000 auction. The agent said I can't make an offer prior to auction as it's a deceased estate, is this true or can someone go and and make an offer prior to auction and I miss out? The vendor was an individual on the contract. Should I approach them or believe what agent has told me? I wanted to offer 900k. Hope that makes sense. Any advice please?

 

If its being handled by the public trustee then fair market price is determined by auction.

Usually difficult if they are deceased

 

I wanted to make an offer to their relative whose name and address is on the contract.

 

Sometimes with a deceased estate there could be friction behind the scenes, with relatives / potential beneficiaries holding differing ideas of the property's value. One of them might be interested in buying the property themselves, and the others don't like their suggested market value. In such an instance, the most transparent way to sell is to go to auction. This could be the reason that they can't/won't consider offers prior to auction.

 

Ok thanks so I guess I can only try.

 

Yes you can make an offer.

 

Thanks for replies, do I contact their solicitor or the relative?

 

The listing agent. Hand them a cheque for $25k (as the deposit) - which will be close to their commission. It may encourage them to encourage the vendor.

As the other postings have said, in deceased estates, there may be many and varied conflicts.

 

Thanks I'll consider that,

 

Only a executor can be listed. The legal personal representative is granted authority by probate. They are obliged to act as a trustee and disregard personal issues.

 

You assume you can waive a wad of cash and bias the agent. You dont pay them. Their client doeswhen the client signs a contract. You can try yoru offer but what the agent may not tell you is a neigbour is happy to pay above odds for the property to develop. There may be ten developers lined up. The agent may form a opinion and ignore you esp when three people all offer $25 deposits. They arent kids

 

If the property is in Sydney, I presume they will want at least $1 million

 

Actually anyone could be listed as the vendor but subject to a grant of probate.

 

Being 900k isn't really that much above the quoted price which is usually lower anyway. With an offer like this they will likely take it to auction as it saves a whole lot of arguments or conflict as others have mentioned.

If you were to offer 1.9M prior to auction then they would be probably more opened to it.

 

As others have said here @SarahM , buying deceased estates prior to auction can be tricky as there are lots of moving parts and often, a lot of emotion involved.

If you want to make an offer, get the contract checked by your solicitor, write up your offer and submit it to the agent. If the agent has said they are not taking offers then they will likely not consider it nor support it if they even present it to the executor of the estate. If they won't consider it, ask that the agent keep you informed if there are other offers or other interested parties. Give the agent a call mid way through the sales campaign to check on progress, so that they know you are a genuine buyer and will be there at the auction.

Please be aware that where you make an offer prior to an auction, this can often be the "benchmark" that the vendor then uses to set as their reserve. So if the agent is adamant that no offers will be considered, it may be prudent to keep your cards close to your chest and not reveal what you are willing to pay for the property. You never know, you may be able to buy it for less than you were prepared to offer prior to the auction.

Ultimately, standing on the street at an auction is a very transparent process and you will get to see who you are bidding against. Unfortunately, you may also be outbid by someone with deeper pockets.

Is the property in Sydney?