1. Get Your Finance Sorted Before You Bid

Organise mortgage finance well before the auction.

• Pre-approval is essential — it tells you how much you can borrow and sets your bidding limit.
• Banks often require a desktop valuation of the property before confirming you can bid on it, especially at auctions.
• Have your deposit funds ready (typically 10% of the purchase price) and accessible on the day.

Because auctions don’t allow conditional finance clauses, you need written confirmation that your lender will fund the purchase if you win.

💡 Tip: Work with a mortgage adviser early — they can help secure virtually unconditional finance and avoid last-minute surprises.

2. Do Thorough Due Diligence Before Auction Day

Since you can’t make your purchase conditional on inspections or finance after winning, you must do your homework first.

Key due diligence steps:

• Building and pest inspections (structural issues can cost thousands if undiscovered).
• LIM report and title search — to check council issues, easements, zoning rules, and more.
• Solicitor review — have your lawyer review sale documents and auction terms.

Skipping these checks can lead to unexpected costs after winning the auction. That’s why seasoned buyers never attend an auction without them.

3. Understand the Auction Process — Before You Attend

Here’s what typically happens:

1. Registration: You register as a bidder with the auctioneer or selling agent.
2. Bidding: The auctioneer calls bids — when the highest bid meets or exceeds the reserve price, the property can be sold.
3. Hammer falls: If you’re the highest bidder and the reserve is met, the sale contract is signed immediately.
4. Deposit: You usually pay your 10% deposit on the day or within a short timeframe after. 

Note: Properties that don’t reach reserve may be “passed in,” which opens an immediate negotiation opportunity with the vendor. This can sometimes lead to a great deal — so don’t walk away too fast.

4. Set a Clear Bidding Strategy

Bidding is fast, emotional, and competitive. To avoid overspending, you need to Set Your Limits.

• Maximum price: the highest you’re willing to go.
• Realistic price: based on market value and comps.
• Walk-away point: stick to it — don’t let emotion push you over budget.

This protects your financial future and prevents impulse overbidding.

💡 Pro tip: Attend a few auctions as a spectator before bidding yourself. It’s a great way to learn pacing and tactics without risk.

5. Make Your Bid with Confidence

Auction psychology matters:

• Bid clearly and confidently — hesitation can signal weakness to other bidders.
• Decide whether to open strong or wait — both can be valid strategies depending on the crowd and market.

If you don’t feel confident, you can also authorize someone (like your mortgage adviser) to bid on your behalf — just make sure they know your limits.

6. What Happens After You Win

Once the hammer falls:

✔ Sign the sale documents
✔ Pay your deposit
✔ Organise home insurance (often required before settlement)
✔ Finalise your mortgage with your lender

From there, your lawyer and mortgage adviser will help manage settlement — typically within 20–30 days.