6 Tips for Bidding at Auction (and How to Prepare Like a Pro)
Buying a home at auction can be both exhilarating and nerve-wracking. Auctions move fast, require immediate decisions, and leave no room for second thoughts once the hammer falls. But with the right preparation and a clear game plan, auctions can also be one of the most transparent and decisive ways to buy a property.
Here are six tips—plus a few expert extras—to help you prepare and bid like a seasoned pro.
1. Do Your Homework
Before you even think about raising your hand at an auction, make sure you’ve done your due diligence. This includes reviewing the LIM report, the title, and the auction documentation. If you’re buying a unit title property, you’ll also want to check body corporate minutes and fees. Ask the real estate agent for all available documentation and review it with your lawyer.
Attend open homes early and consider organising a building report if one hasn't already been supplied. The auction sale is unconditional, so you need to uncover any issues before the big day—not after.
2. Get Pre-Approved and Finance-Ready
Finance must be sorted before auction day. There’s no “subject to finance” clause at auction, so talk to your mortgage adviser well in advance. The bank will need at least three working days to review the property documents and give written approval to bid.
You’ll also need your deposit ready—usually 10% of the purchase price—payable immediately if you win. If you’re planning to pay a lower deposit or need a different settlement date, this must be approved by the vendor before the auction begins. Talk to the agent early so this can be arranged in writing.
3. Understand the Auction Rules
Each auction is governed by its own set of rules, and the auctioneer will read these aloud before bidding begins. If you’ve never been to an auction before, attend a few as a spectator first. You’ll learn the lingo, the pacing, and the flow.
Register to bid beforehand or on the day—bring your ID or written authority if you’re bidding on behalf of someone else. Once you make a winning bid (and the reserve is met), you're legally committed to buy. There’s no cooling-off period.
4. Set Your Bidding Limits (and Stick to Them)
Auctions move fast and emotions can run high. Before the auction, set three price points:
A dream price (if you win at this, you’ll be thrilled)
A realistic price (what the market probably sees as fair value)
An absolute max (what you’re willing to pay if it’s your forever home)
Stick to your upper limit. If you’re concerned you’ll get swept up in the heat of the moment, consider asking a trusted friend or your mortgage adviser to bid on your behalf. Make sure they know your ceiling and are comfortable holding firm.
5. Craft a Confident Bidding Strategy
Bidding with confidence can make a big difference. Start strong with a prompt opening bid—this shows you’re serious and may put others on the back foot. If you hesitate or reduce your bid increments too quickly, it can build confidence in your competition.
Bid clearly and audibly. Keep your posture calm and your energy focused. Letting other bidders see that you’re composed (even if you’re sweating inside) can help sow seeds of doubt.
Remember, your goal isn’t just to win the auction—it’s to win at a price you’re happy with.
6. Be Ready for the Unexpected
Sometimes, a property may be “passed in” if the reserve isn’t met. If you’re the highest bidder, you may get the chance to negotiate with the vendor immediately. This is often your best shot to strike a deal—so have a plan for this possibility. Know your walkaway point and be prepared to act quickly.
It’s also wise to arrive early on auction day. Many bidders make the mistake of turning up last minute, feeling flustered and overwhelmed. Give yourself time to find the agent, confirm any final paperwork, and get into the right headspace.
Bonus Auction Day Tips from the Experts
Watch a few auctions beforehand: This will help familiarise you with the pace, the auctioneer’s language, and the energy of the room.
Speak with the auctioneer: Introduce yourself before the auction begins. They’re usually happy to offer guidance and help settle your nerves.
Don’t let the crowd scare you: Just because 30 people show up doesn’t mean 30 people are bidding. Many are just watching, or haven’t done their prep.
Ask the agent for recent sales and price guidance: While they can’t disclose the reserve, they can offer helpful insights and support your strategy.
Buying at auction may seem intimidating, but when approached with preparation, confidence, and a clear plan, it can be a rewarding path to homeownership.
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