How to bid at an auction: A confident buyer’s guide
Buying a property at auction can be an exciting opportunity—but it also requires preparation, confidence, and a clear strategy. Whether you’re purchasing a family home, upgrading your lifestyle, or adding to your investment portfolio, understanding the auction process puts you in a stronger position to succeed.
Below is a step-by-step guide to help you bid smart, stay composed, and maximise your chances of securing the right property.
Do your homework early
Preparation is everything. Before auction day, make sure you:
- Inspect the property (ideally more than once)
- Obtain and review the contract of sale with a solicitor or conveyancer
- Arrange a building and pest inspection
- Research recent sales of similar properties in the area
The more informed you are, the more confident you’ll feel on the day.
Get your finance ready
Auctions move fast—and there’s no cooling-off period. If you’re the winning bidder, you’re legally bound to the purchase and must pay a 10% deposit on the spot.
Make sure to:
- Have formal pre-approval in place
- Know your maximum borrowing limit
- Ensure your deposit is accessible (typically via bank cheque or EFT)
Tip: As a mortgage broker, we can help you secure pre-approval and tailor finance solutions to your goals—we are especially helpful if you’re also selling or managing complex finances.
Understand the rules of the game
Auction laws vary slightly across states and territories in Australia, but most share these basics:
- You must register to bid
- Properties are sold “as is”
- There’s no renegotiating after the hammer falls
Ask the real estate agent for the auction rules and the contract of sale well in advance.
Attend a few auctions first
Not sure what to expect? Go to a few auctions as an observer. This will help you:
- Learn how auctioneers operate
- Watch how others bid
- Understand the pace and psychology of the auction process
This real-world insight can help you stay calm when it’s your turn.
Plan your bidding strategy
A clear bidding plan helps you stay focused and in control. Consider:
- Setting a firm maximum price—and sticking to it
- Starting strong with confident bids, or waiting to read the room
- Making clear, timely offers to project confidence
- Staying emotionally detached
You can also engage a buyer’s agent or trusted representative to bid on your behalf if you’d prefer a more hands-off approach.
If you’re the highest bidder…
If the hammer falls in your favour:
- You’ll sign the contract of sale immediately
- Pay the 10% deposit
- Proceed to settlement (usually within 30–90 days, depending on the terms)
If the property is passed in, but you’re the highest bidder, you may get the chance to negotiate directly with the vendor.
In summary
Bidding at an auction doesn’t need to be stressful. With the right preparation, a clear budget, and expert financial advice, you can walk into auction day feeling empowered and in control.
Need Help with pre-approval or strategy?
We specialise in helping professionals and families navigate the buying process with clarity and confidence. Whether you’re buying your dream home or building a property portfolio, we’re here to support you every step of the way.