Auction Guide: Be Prepared!
Understanding the Auction Process
Property auctions blend excitement with significant financial decisions. The atmosphere can be electric, but understanding how they work helps you navigate them with confidence.
Did you know? It's actually illegal for a seller or their agent to give you a price guide for an auction property, because they cannot know how high bidding might go!
Important: There is no cooling-off period when buying at auction. If you're the successful bidder, you must settle the contract even if the property doesn't pass inspections, you change your mind, or you discover you can't afford it.
Types of Auctions
- Live Auctions: Experience the energy in person, either on-site at the property (giving you a final chance to inspect) or in real estate offices when multiple properties are being sold
- Online Auctions: Convenient bidding from anywhere, though you'll miss the face-to-face dynamics
- Hybrid Auctions: The increasingly popular format combining both in-person and online participation
Before the Auction
Practical Checklist
✔️ Get a title search and contract copy
✔️ Arrange thorough building and pest inspections
✔️ Have us at Cozee review all legal documents
✔️ Confirm your bidding entity (personal, joint, company, trust)
Remember, once the hammer falls, you can't change the contract terms! Contact us at Cozee early to give yourself peace of mind.
Financial Preparation
- Secure your pre-approval before falling in love with properties
- Set a firm budget that includes all additional costs like stamp duty
- Organise your deposit payment method - this will be due immediately if you win
- Double-check that your settlement funds will be available on time
Mental and Emotional Preparation
- Choose a bidding style that feels natural to you
- Plan how you'll stay calm amid the competitive atmosphere
- Decide in advance if certain properties are worth stretching your budget for
- Remember that your perfect home might be at the next auction
At the Auction
Arrive early to feel the room's energy and register as a bidder. If you're nervous, consider asking a confident friend or buyer's agent to bid on your behalf.
When bidding begins, start conservatively but confidently. Watching other bidders carefully can reveal their limits. Remember that strategic increments (like bidding $427,000 instead of $430,000) can sometimes disrupt others' plans. But most importantly, stick to your budget - no property is worth financial stress!
After the Auction
If You Won: Sign immediately, pay your deposit, and contact us at Cozee Conveyancing to begin the exciting journey to settlement. Keep all documents safe - your new home adventure has officially begun!
If the Property Was "Passed In": The highest bidder gets first negotiation rights. If you're in that position, stay calm and remember your limit. If not, stick around - you might get your chance if negotiations fall through.
If You Didn't Win: No regrets if you stuck to your strategy! Each auction teaches valuable lessons. The right property is still waiting for you, and now you're better prepared to find it.
Final Thoughts
Success at auction isn't about getting every property you bid on—it's about making confident decisions and knowing when a property is right for you... and when to walk away. With proper preparation and the right mindset, you're already a winner.
Happy bidding!
Found your dream home? Contact us at Cozee to make it legally yours.