In Melbourne and Sydney a large share of homes sell under the hammer. Auctions move fast and leave no room for second thoughts, so the work happens before you ever raise your hand.
An auction sale is unconditional. You cannot add building, pest or finance clauses, there is no cooling-off period, and if you win you sign the contract on the spot and pay a 10% deposit that day. Every check has to be done beforehand.
Ask the sales agent for the contract (and the Section 32 Vendor Statement in VIC) as soon as you're interested, and have your conveyancer review it well before the auction.
Because you can't make the purchase conditional on it, arrange the inspection before the auction. Coordinate access with the agent.
Pre-approval is the minimum. Talk to your broker about how firm your approval is, since there's no finance clause to fall back on.
Decide your walk-away number in advance and write it down. Auctions are designed to push you past it.
Most states require bidders to register and show ID before the auction starts. Arrive early.
Stick to your limit. Bid confidently, but don't get drawn into a back-and-forth that blows past your number.
The highest bid above reserve wins. You sign the contract immediately and pay the deposit (usually 10%) that day.
The minimum the vendor will accept. The property is "on the market" once bidding passes it.
A bid the auctioneer makes on the seller's behalf to lift bidding toward the reserve. It's not a real competing buyer.
If bidding doesn't reach the reserve, the property is "passed in" — usually the highest bidder gets first right to negotiate.
Typically 10% of the purchase price, payable on the fall of the hammer. Have it ready to transfer.
This guide is general information only and does not constitute legal, financial or real estate advice. Auction rules differ between states and individual contracts — confirm the details with the sales agent and your conveyancer before bidding.