Auction day can be a little stressful, even if you’ve had some experience with auctions before. So what are the essential steps for buying successfully under the hammer? 

1. Familiarise yourself with how auctions work

Do your research, talk to friends and attend as many auctions as possible before the big day. Practice makes perfect, and the more familiar you are with the bidding process and regulations, the more confident you’ll be when it’s your turn to bid.

2. Get conditional pre-approval

Conditional pre-approval will help you understand how much you can afford. This can not only help with your budget calculations and property search but also shows sellers that you’re serious about making an offer.

3. Conduct thorough inspections

As well as physically inspecting the property yourself, ask the seller for copies of any building inspection reports that may have been prepared. If none have been done, organise pest and building inspections before the auction date.

4. Know what the property is worth

Make sure you take the time to research your shortlisted properties. Look at recent sales of similar properties in the neighbourhood to get a good idea of what the property may be worth.

Our complimentary Property and Suburb Reports can help you research both the property and area you’re interested in. You can search sale listings, suburb insights, demographics and more.

5. Check the contract of sale

Get a copy of the sale contract from the vendor’s agent and have your solicitor check it before the auction. Should you have the winning bid at auction, you’ll have to sign the contract on the day (there are no cooling-off periods for auctions).

6. Register to bid

Depending on which state or territory you live in you may need to register to bid, either before or on the auction day.

Registering doesn’t mean that you must bid; it just means you have the right to bid. To register, you’ll need some sort of photo identification and a document that provides proof of your current address. Commonly accepted forms of identification include a driver’s licence, vehicle registration papers or council rates notice.

7. Bid

Decide on your upper limit before the auction begins, and stick to it. This will help you avoid getting in over your head financially. If you’re successful at auction, you’ll need to have the deposit ready to pay as well as sign the contract of sale.

Approaching bidding as a business transaction, with a cool head and a calm manner, can help you avoid making the wrong decisions in the heat of the moment on auction day.

If you’re planning to attend a virtual inspection and/or bid at an online auction, the process is a little different. 

Speak with one of our Home Lending Specialists to help make sure you're ready to bid on auction day

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Things you should know

This article is intended to provide general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. As this information has been prepared without considering your objectives, financial situation or needs, you should, before acting on this information, consider its appropriateness to your circumstances. You should also consider seeking professional financial, legal and/or tax advice before making any decision based on this information.

CommBank Property and Suburb Reports contain property information that is obtained from third parties. They are not intended to be advice or a professional property appraisal and should not be relied upon as such. You should also make your own enquiries and assessments before making any decisions.