Buying at Auction

An auction lets you see other bids as they are made. A successful auction purchase is unconditional, so the important work happens before you bid. Our licensed salespeople can explain the property and auction process; your lawyer, lender and independent inspectors help you decide whether the property and terms are right for you.

Preparing for the auction

Let your salesperson know that you have interest to ensure you are kept fully informed of all developments and to ensure you are contacted should a pre-auction offer be made.

Satisfy yourself as to any building or structural matters – you may wish to obtain a building report from a reputable company specialising in “pre-purchase” inspections.

Ask the salesperson for the available property information and known issues. Have your lawyer and inspector review the relevant documents and investigate any concerns; an auction pack is not a substitute for your own due diligence.

Satisfy yourself as to any local authority compliance issues – the vendor may provide an up to date LIM (Land Information Memorandum). Give this to your solicitor to check.

We recommend you get your solicitor to peruse a copy of the Auction Conditions of Sale (Certificate of Title attached) to satisfy yourself there are no contractual issues pertaining to the sale. These Conditions of Sale will also state the chattels, settlement date, any special clauses relating to the sale and, as stated above, any known defects. Check the chattels list to ensure there are no surprises upon settlement.

Have your lender confirm finance for the specific property before bidding, and arrange insurance for settlement. Check the deposit amount and when it is payable in the auction terms. It is commonly 10%, but the agreed terms govern.

Note: If you wish to alter any of the standard conditions (usually pertaining to settlement or deposit) this may be arranged through the salesperson if the vendor is in agreement (Side Agreement). This must be done prior to the auction.

Set a firm bidding limit within your confirmed finance and overall budget, including purchase and ownership costs. Do not exceed it under auction pressure. If you cannot bid unconditionally, discuss your options with your lawyer and the salesperson before the auction.

Read the independent Settled auction guide and ask your lawyer to explain anything you do not understand.

Bidding

Before auction day, confirm registration, how to bid and any identification requirements with the salesperson. Make your bids clearly and stay within your limit. Once your bid is accepted and the hammer falls, you are committed to the purchase under the auction terms.

Dummy or shill bidding is illegal. A clearly identified vendor bid is different: it is made on the seller’s behalf and is subject to specific rules.

Vendor bids are permitted only where there is a reserve, the reserve has not been reached and the bid is clearly identified as a vendor bid. Ask the auctioneer to clarify any bid or process you do not understand.

Plan your next step

Browse upcoming auctions, view the auction feed, or contact the team about a property you are considering.