Winning at Property Auctions: 5 Tips Every Home Buyer Needs to Know

Property auctions can feel like a whirlwind of nerves and numbers. For many buyers—especially first-timers—the fast pace and public pressure can be overwhelming. But with the right preparation and mindset, auctions can also be one of the best ways to secure a great property, often at a better price than expected.
Here are five practical tips every home buyer should know before bidding at auction.
1. Do Your Research Before Auction Day
Knowing the market is non-negotiable. Before attending any auction, spend time reviewing recent comparable sales in the area. This gives you a sense of what similar homes are going for and helps you set a realistic budget.
Research the property itself. Ask the agent for the contract of sale and have it reviewed by a solicitor or conveyancer. Organize a building and pest inspection to rule out any costly surprises. At auction, the sale is final—there’s no cooling-off period—so all checks must be done beforehand.
It’s also smart to attend several auctions before you plan to bid. Watch how experienced buyers behave, how the auctioneer sets the pace, and how bidding strategies unfold. This helps reduce the anxiety of the unknown and prepares you for the real thing.
2. Get Your Finance Pre-Approved
Finance must be locked in well before the auction date. Without pre-approval, you risk bidding on a property you can’t afford or struggling to complete the purchase on time.
Pre-approval gives you a clear spending limit and shows the selling agent that you’re a serious buyer. It also means you’re less likely to experience delays or issues once the auction is over and the contract is signed.
Many buyers find it helpful to work with a mortgage broker Sydney buyers trust, especially when dealing with the fast turnaround that auctions require. A good broker can help you understand your borrowing capacity, line up a lender that suits your situation, and ensure all paperwork is in order well before auction day.
3. Set a Firm Budget and Stick to It
It’s easy to get caught up in the energy of an auction. When the crowd is competitive and the auctioneer is moving quickly, emotions can override logic. That’s why it’s essential to set your maximum price before the auction starts—and stick to it, no matter what.
This budget should be based on your lender’s pre-approval amount, your savings buffer, and a clear understanding of your ongoing expenses. Don’t forget to account for stamp duty, legal fees, moving costs, and possible renovations.
If you’re prone to impulse decisions or feeling pressure, consider having someone bid on your behalf—whether it’s a buyer’s agent, trusted friend, or family member.
4. Learn the Auction Rules and Bidding Strategies
Each state and territory has slightly different auction regulations. Make sure you know what’s required in your location, including how to register, what ID is needed, and what deposit must be paid if you win.
In most cases, bidding is public, fast-paced, and final. The auctioneer will announce if the reserve price is met—this is when the property is officially “on the market” and will be sold to the highest bidder. If bidding doesn’t reach the reserve, the highest bidder often gets the first opportunity to negotiate post-auction.
As for bidding strategy, stay calm and bid confidently. Quick, decisive bids can signal strength and deter competition. Starting strong can work in your favor, but holding back and letting others set the pace can also be smart. Choose a method that suits your personality and market conditions.
5. Be Ready to Act Immediately If You Win

Winning at auction means signing the contract and paying the deposit on the spot—typically 10% of the purchase price. There’s no backing out, so everything needs to be in place ahead of time.
Make sure your deposit funds are accessible. Some sellers request a bank cheque; others may allow electronic transfers, but this should be confirmed well in advance.
Your solicitor or conveyancer should also be on standby in case any last-minute contract details need clarification. From this point forward, settlement will proceed based on the agreed timeframe—usually 30, 45, or 60 days.
Final Thoughts
Bidding at auction doesn’t need to be intimidating. With the right preparation, a clear budget, and confidence in your financial position, you can turn an auction into an opportunity.
For expert guidance on preparing your finances and understanding what you can afford, OurTop10 connects you with experienced mortgage brokers, buyer’s agents, and property advisors who know how to help buyers succeed—whether it’s your first auction or your fifth.