Key takeaways
- Auction sales are unconditional — no cooling-off, no finance clause.
- Sort pre-approval, inspections and legal review before auction day.
- You pay the deposit (usually 10%) immediately on winning.
- Confirm the specific property suits your lender — approval still hinges on the valuation.
An auction is a test of preparation dressed up as a test of nerve. The buyer who wins well isn’t the boldest — it’s the one who knew their limit, had finance ready, and had done the checks before they raised a hand. Get those right and the day itself is almost calm.
Why auctions are different
In a private-treaty sale you can make an offer “subject to finance” and usually get a cooling-off period. At auction, neither applies. Win the bid, sign the contract, pay the deposit — unconditionally. If your finance then falls through, you can forfeit your deposit and be liable for the seller’s losses. That’s the risk you remove by preparing.
Before auction day
- Pre-approval. Get pre-approved so you know your ceiling and can bid with confidence.
- Check the property with your broker. Some lenders are cautious on certain apartments or locations — confirm the valuation is likely to stack up.
- Legal and inspections. Have your solicitor review the contract and arrange building and pest inspections in advance.
- Deposit ready. Have your 10% accessible on the day.
Pre-approval isn’t a guarantee for any property — it’s conditional on the specific one valuing up. The step buyers skip is running the exact property past their broker before bidding. Do that, and the gap between conditional and formal approval all but disappears.
On the day
Set a firm limit in advance and don’t let the room push you past it — your borrowing power and budget set the ceiling, not the adrenaline. Register to bid, arrive early, and bid clearly and decisively. If it passes in and you’re the highest bidder, you usually get first right to negotiate.
After you win
You sign and pay the deposit immediately, then move to settlement over the following weeks — the same finance and stamp duty steps as any purchase, just without the safety net of conditions. Which is exactly why the work happens beforehand.
Broker Insight. The buyers who bid with confidence are the ones who sorted finance and checked the property against lender policy beforehand. An auction is won in the week before, not on the day.
Bid with confidence — get finance-ready first
We’ll pre-approve you, sanity-check the property against lender policy, and make sure you can settle whatever you win. Free, no obligation.
Book your free game plan callFrequently asked questions
Do I need pre-approval to bid at auction?
Effectively yes. An auction sale is unconditional — there’s no cooling-off period and no finance clause — so if you win and can’t settle, you can lose your deposit and face penalties. Pre-approval tells you your ceiling and gives you the confidence to bid, though you should still confirm the specific property suits your lender, since final approval depends on the valuation.
Is there a cooling-off period when buying at auction?
No. Cooling-off periods apply to private-treaty sales, not auctions. When you win at auction you sign an unconditional contract on the spot and pay the deposit immediately. That’s exactly why your finance, inspections and legal checks need to be done before auction day, not after.
How much deposit do I pay on auction day?
Usually 10% of the purchase price, payable immediately when you sign the contract after winning — by cheque or bank transfer as the agent requires. The balance is paid at settlement, typically several weeks later. Make sure your deposit funds are accessible on the day, not locked in a term deposit.
This guide is general information only and does not take your personal circumstances into account. It is not financial or credit advice. Government schemes, lender policies, rates and tax rules change over time and eligibility criteria apply. Speak with us for advice tailored to your situation.