Auctions are unconditional sales. If you win, you must sign contracts and pay the 10% deposit on the spot, with no cooling-off period.
Get pre-approved early to confirm your borrowing power and bid confidently. It's essential, as finance clauses don't apply at auctions.
Know your limit and stick to it. Base it on what you can comfortably afford, not just what you can borrow, to avoid mortgage stress later.
Preparation protects you. Review the contract, understand local market values, and attend auctions to observe bidding tactics before placing your bid.
An Aussie Broker or Buyer's Agent can help you get auction-ready, secure pre-approval, and even bid on your behalf with a clear strategy.
Auction bidding can be daunting, but with the right preparation and strategy, you can secure your dream home at the right price. This guide draws on expertise from leading auctioneer Damien Cooley, who shared proven tips and insider insights on how buyers can prepare, stay calm, and bid with confidence on auction day.
Whether you're a first-home buyer stepping into your first auction or an experienced bidder wanting to sharpen your strategy, this guide brings together expert tips to help you understand how auctions work, what to expect, and how to set yourself up for success.
Understanding the auction process in Australia
Thinking of bidding at auction? You're not alone. Auctions have become a popular way to buy property across Australia, but they work very differently from private sales. If you're serious about buying, understanding how the process works can help you prepare, bid confidently, and avoid costly mistakes.
Private sale vs auction: What's the difference?
When you buy a property through a private treaty, you can negotiate on price, settlement date and contract conditions. There's usually a cooling-off period and room to include clauses such as 'subject to finance' or 'subject to building and pest inspection'.
At auction, things move faster. You'll bid publicly, usually on a set date and time. If you're the highest bidder and the property meets the reserve, the sale is unconditional. There's no cooling-off period, and you'll be required to sign the contract and pay the deposit (typically 10%) immediately.
That's why preparation is essential. Once the hammer falls, there's no room to renegotiate or withdraw, so your finance, legal checks and bidding strategy should all be in place before auction day.
"There's a few things about auctions that buyers need to understand. Firstly, when you buy at an auction, there's no cooling-off period; it's an unconditional cash sale. So, if you raise your hand or register to bid for a property, you are financially committed to going through with a sale. If you pull out, you are still legally bound to pay the deposit," says top Sydney auctioneer Damien Cooley.
"For example, in New South Wales, you are still legally bound to pay the 10% deposit," he adds.
"If the property is then resold for a lower amount than you paid at the auction, you are also liable for the difference between what you paid and what it sold for," Damien adds.
That's why having a solid auction strategy for home buyers is so important. Preparation doesn't just help; it protects you.
Learn more about the differences between an auction and a private sale.
How can I bid at an auction (legally and confidently)?
Every state and territory has slightly different auction rules, but in most areas, you'll need to register before the auction starts. Registration typically involves presenting identification and receiving a bidder's number or paddle. You can bid in person, by phone, or through a licensed buyer's agent acting on your behalf.
Confidence on the day largely depends on preparation. Knowing your borrowing limit, setting your maximum bid, and understanding the auction conditions are essential. It's also wise to attend a few auctions beforehand to get a feel for how bidding unfolds.
Learn more about the process for online and in person property auctions.
How to prepare for auction day
If you're heading into an auction, don't wing it. The most successful buyers have a plan, a clear budget, and the right people in their corner. Here's your step-by-step guide to staying cool, confident, and in control when the bidding begins.
1. Get pre-approved early
You can't make a conditional offer at auction; it's all or nothing. That's why a pre-approval is non-negotiable. It confirms your borrowing power and shows sellers you're serious. An Aussie Broker can help you sort your pre-approval quickly and match you with a lender who fits your goals and timeline. They'll also flag any red flags before auction day.
2. Know your limit and hold it
One of the most important tips for bidding at an auction? Set your upper limit and stick to it. That number should come straight from your pre-approval and reflect what you can comfortably afford, not just what you can technically borrow.
It's easy to get swept up in the moment, but overspending can lead to mortgage stress later.
Your Aussie Broker can help you run the numbers, compare options, and build a smart auction strategy for home buyers that protects you.
Pro tip: Decide your walk-away price before you arrive. Then stick to it, no exceptions.
3. Research like a local
Want to know how to bid at an auction with confidence? Do your homework. Attend inspections, review recent sales, and study the properties' performance in your chosen suburb.
"Where do you want to live? What street do you want to live in? Do you need parking or don't need parking? What are the real attributes of a property that you're looking for? However, it's going to be difficult to find something that ticks every single box. So, be willing to negotiate on some of those points," says Damien.
With Aussie's free suburb reports, you'll access sales history, value estimates, market movements, and more. Understanding the difference between a guide for price and real market value gives you a serious edge on auction day.
"Once you establish the type of property you want, you need to do a lot of market research. One way to do that is by attending as many inspections as possible. Even if they're not the properties you like, still go and look at them because you need to find out what they sell for," he adds.
4. Get your papers and finances sorted
At auction, the sale is final the moment the hammer falls. That means no cooling off, no changes to the contract, and no time for second thoughts. Before auction day:
Have a solicitor or conveyancer review the contract.
Make sure your deposit (typically 10%) is ready to go.
Confirm your loan structure, rate type, and repayment plan with your broker.
If interest rates are shifting (and they are), you'll want to be one step ahead.
5. Practice makes you confident
Thinking about how to act when the bidding starts? Show up to a few auctions to observe. Watch how others bid. Listen for pauses from the auctioneer. Take note of the tactics that make people hesitate or go quiet. When it's your turn, you'll feel like you've been there before.
With the right preparation and expert guidance, auctions don't have to be intimidating. These auction bidding tips are here to help you bid with confidence, clarity, and a cool head.
"Product knowledge is key to understanding value. When you understand value, it helps you understand what a property is worth," adds Damien.
Auction day tactics: What clear-headed buyers do
Auction day can feel intense, fast bidding, keen buyers, and big decisions. But with the right auction strategy for home buyers, you can walk in feeling calm, confident and ready to own it. This is your buyer's guide to auction bidding, with auction tactics to help you play it smart.
1. Choose your position wisely
Where you stand (or how you bid) can influence your confidence and the crowd's perception.
The front and centre make you more visible to the auctioneer, and you can signal strength just by standing your ground.
The back of the room gives you the advantage of watching everyone else, which is handy if you like to read the room before making a move.
Online or phone bidding is great for staying emotionally neutral or bidding from afar. Many buyers prefer this format to keep a cool head when things heat up.
2. Should you start the bidding early or late?
There's no universal rule. Some buyers like to open strong. Others prefer to hold back.
The case for bidding early: | The case for bidding late: |
|---|---|
Shows you mean business | Allows you to observe the crowd and auctioneer |
Helps set the pace and tone | Keeps your position and budget under wraps |
Might make others second-guess their budget | May help if the property gets passed in and reopens for post-auction negotiation |
One of our top tips for bidding at an auction: If you're unsure, go in later with a bold, confident bid that stands out, for example, $5,000 more than the previous one. It's all about owning your moment without overexposing your hand.
3. Read the auctioneer like a pro
Auctioneers are there to keep things moving; their job is to get the best price for the seller. But that doesn't mean you can't use their cues to your advantage. Here's what to watch:
"We're on the market": The reserve has been met. The home will now be sold to the highest bidder.
Long pauses: Designed to build tension and give people time to rethink. Don't get caught up in it.
Rapid-fire bids: A tactic to maintain urgency. Stick to your pace, not theirs.
If you sense the auctioneer targeting you with eye contact or name-calling, they may think you're near your limit. Stay composed. Keep breathing. Your budget is your anchor.
4. Know when to use proxy or online bidding
In today's market, many auctions are hybrid or online. That has opened up more options, especially if you'd prefer someone else to do the heavy lifting.
Proxy bidding can be a smart move if: | Online bidding works well if: |
|---|---|
You're emotionally attached to the property. | You're interstate or unavailable on the day. |
You can't attend in person. | You want a buffer from the energy in the room. |
You want someone experienced to stick to your brief. | You're more confident typing than speaking up. |
Both methods are common auction tactics and can help remove emotion from the equation. Your Aussie Buyer's Agent can bid for you and stick to your strategy when things get intense.
Not every auction ends with a win, and that's okay. Sometimes, your chosen property goes above your limit. Sometimes it's passed in. Sometimes, you walk away because it just doesn't feel right.
Every auction gives you insight. You learn how the market behaves, properties are priced, and how you respond under pressure.
Why auctions feel intense, and how to stay cool
An auction isn't just about the property or the price. It's a game of timing, psychology, and strategy, and knowing how to bid with a clear head is just as important as knowing how much you can spend. This buyer's guide to auction bidding is here to help you manage emotions, tune into the crowd, and follow a smart, grounded auction strategy for home buyers.
How do you stay in control when emotions run high?
You've done the prep. You've got your pre-approval. But when the bidding kicks off, even the most prepared buyer can feel the heat. According to leading auctioneers like Damien, understanding buyer behaviour can give you the edge.
Damien’s tips for bidding at an auction are all about observation:
Set your walk-away price and write it down. Then, stick to it, no matter what.
Know the property's value. Use suburb reports and get expert guidance for market insights.
Take a breath before each bid. That pause gives you control and clarity.
Avoid ego bidding. Stick to your strategy. Don't chase the win.
Our Buyer's Agents regularly attend auctions nationwide and can help you read the room and adjust your plan if needed.
"During an auction, there is a lot of emotion. Buyers go on this emotional rollercoaster from falling in love with a property to the auction day. It's that emotional rollercoaster that I've seen many times talk people out of bidding on auction day," says Damien.
Do macro market shifts affect auction behaviour? If so, how?
Broader market conditions can shift buyer sentiment in subtle (but powerful) ways.
Interest rate cuts. As we're seeing in 2025, rate drops can increase confidence or prompt a rush of FOMO from buyers wanting to beat the price rises.
Seasonal shifts. Spring auctions tend to be busier and more competitive. On the contrary, winter can be quieter but might offer better buying conditions.
By tuning into these shifts, you can develop a smarter auction strategy for home buyers that reflects the market's real-time mood.
What do absentee bids and online registrations tell you?
Today, digital and proxy bidding are standard parts of auction tactics. But don't let the number of registered bidders throw you.
Absentee bids often come from serious buyers with a clear budget and plan. Meanwhile, online registrations can inflate the crowd on paper, but not all will actively bid. An Aussie Buyer's Agent can help you assess the real level of competition and avoid getting rattled by surface-level stats.
That's why we always remind buyers: the goal isn't to outbid everyone. It's to buy the right home at the right price on your terms.
To keep your cool, start with visualizing the day ahead of time. Think about where you'll stand, how you'll bid, and how you'll respond under pressure. Have someone in your corner. An Aussie Broker or Buyer's Agent can give live feedback and remind you of your strategy.
Let your bids be bold and clear, not reactive.
Remember, knowledge is power, and calm is your superpower. With the right support and a solid plan, you won't just survive auction day; you'll own it.
What to do after after the auction
If you're the highest bidder, you've just bought a home. Now, it's time to move quickly. First, you'll sign the sale contract on the spot.
Then, a deposit is due immediately, usually 10% of the purchase price. Be ready to pay via EFT, cheque, or other pre-approved method. There's no cooling-off period, no finance clause, no time to second-guess. This is why you need to have everything sorted before auction day.
Here's a quick breakdown:
NSW, VIC, QLD, SA, WA, ACT, and NT: There is no cooling-off period after the auction.
TAS: Usually, there is no cooling-off either, but check for unique clauses in your contract.
The rules may change if you're negotiating post-auction via a private treaty. So, your inspections, finance, and legal reviews should already be complete.
Pro tip: Bring your solicitor or conveyancer's details with you, and always review the contract well before auction day.
Remember, most buyers don't win on the first try. What matters is how you bounce back. Smart buyers treat auction strategy like a sport; every experience helps sharpen your edge.
Debrief with your Aussie Buyer's Agent: Was the property worth it? Was your bidding plan solid?
Revisit your borrowing power: Could you adjust your limit if market conditions shift?
Track auction wrap-ups: Look for patterns in clearance rates, pricing, and bidder turnout.
Also, stay close to the selling agent. If the buyer who won falls through, you might be next in line.
What happens if the property passes in? Should I walk away?
A passed-in auction means bidding didn't reach the seller's reserve. But you still have a strong hand. If you're the highest bidder, you'll usually get first dibs to negotiate. Here's how to handle it:
Let your Aussie Buyer's Agent lead the conversation. They're skilled negotiators and can keep emotion out of it.
Understand the seller's goals. Their reserve might be close, and they may be open to a deal.
You can reintroduce finance conditions or flexible terms now that you're off the auction.
Post-auction negotiations are a big part, and many buyers walk away with a win or on better terms.
Whether you win or lose, every auction is a learning moment. Leading auctioneer Damien Cooley recommends running a quick post-auction review:
Did you stick to your budget and game plan?
Were you caught off guard by other bidders or tactics?
Did nerves affect your decision-making?
Was your pre-auction prep strong enough?
Would using a proxy help next time?
Every auction teaches you something: how to spot bluffers, read an auctioneer, time your bids, or walk away at the right moment. These are the kinds of skills that help you build a smarter auction strategy for home buyers. If you'd rather not go it alone again, an Aussie Buyer's Agent can be your secret weapon. We've helped buyers secure homes with less stress, less risk, and better results.
Common auction mistakes (and how to avoid them)
Even the most prepared buyers can slip up on auction day. The good news? These mistakes are easy to avoid with a little prep and the right team by your side. If you're brushing up on how to bid at an auction, use this as your checklist.
Bidding without pre-approval: One of the biggest traps is heading into an auction without finance sorted. If you win and your lender says no, you could lose your deposit. Chat with an Aussie Broker early. We'll help you understand your borrowing power, get pre-approved, and make sure you're auction-ready.
Skipping the contract review: The excitement of auction day can cloud judgment, and buyers sometimes forget to check the contract until it's too late. Have your solicitor or conveyancer review the contract well before auction day. Your Aussie Broker or Buyer's Agent can coordinate the legal review.
Letting emotions take over: Auction rooms are designed to pump up the pressure. One extra bid can feel like nothing until regret kicks in later. Set a firm bidding limit and stick to it. Feeling nervous? Bring someone calm for support, or let your Aussie Buyer's Agent handle your bidding. It's all about staying sharp and strategic.
Ignoring what's happening around you: You might be focused on your auction strategy, but missing the signals from other bidders can cost you the edge. Watch out for body language, bidding patterns and pauses. Smart auction tactics involve reading the room.
Trusting the price guide too much: Price guides aren't price caps. They're often set low to attract interest, and properties can sell for much more. Do your homework. Use recent sales, suburb insights, and your Aussie's smart tools to set realistic expectations and back your decisions.
Forgetting what happens after the win: Winning is exciting, but are you ready to act fast? You'll have to sign the contract, pay the deposit, and arrange insurance immediately. Bring your ID, know your payment method, and have your solicitor's contact handy. Arrange inspections before auction day, not after. Lock in insurance coverage the moment you've bought.
Walking away from a passed-in property: Just because it didn't sell under the hammer doesn't mean the opportunity is gone. If the property passes in and you're the next top bidder, you'll likely get the first shot at negotiating. An Aussie Broker can help you make a confident offer or secure a better deal than on the floor.
Buying at auction can feel intense, but the right prep makes all the difference. Remember, mistakes happen, but planning pays off.
Auctions don't have to be intimidating, not when you're prepared.
With the right support, a clear limit, and a few smart auction tactics, you'll walk in with confidence and walk out with the keys. Whether it's your first or fifth bid, Aussie is in your corner with tailored advice, suburb insights, and buyer's agents who know how to win. When you're ready to bid, make sure you're backed by a team that's done it all before. Let's get you auction-ready.
