Let’s be real, auctions are intimidating. The fast-talking auctioneer, the sea of confident bidders, the fear of overspending or freezing up. If you’re a first home buyer in Australia, it can feel like you’re stepping into a high-stakes game with no rulebook. But with preparation and an understanding of the process, you can feel more confident heading into auction day.
Know the Rules Before You Raise Your Hand
Unlike private sales, buying at auction is unconditional. That means no cooling-off period and no backing out if you win. So before you bid:
- Get pre-approval from your lender
- Review the contract of sale with your solicitor
- Organise building and pest inspections before auction day
Once the hammer falls, you’re legally bound to buy, so don’t bid unless you’re truly ready.
Set a Firm Budget (And Stick to It)
Auction nerves and fear of missing out can tempt you to bid beyond your limit; it’s important to stick to a price that aligns with your financial comfort zone. Decide your walk-away price before auction day based on:
- Your loan pre-approval
- Comparable recent sales in the area
- Additional costs like stamp duty and legal fees
Be aware that in fast-moving markets, the listing price may not always reflect recent comparable sales, so rely on your own research.
Bidding Strategy: Start Strong or Play it Cool?
There’s no one-size-fits-all approach, but two common tactics are:
- Start strong to show confidence and knock out weaker bidders early
- Hold back and enter later to observe the crowd and avoid driving up the price
Whatever approach you take, ensure you remain aware of your limit and avoid exceeding it. Bring your ID, your deposit (usually 10%) and someone supportive if possible. Many buyers find it helpful to attend a few auctions beforehand to get familiar with the process.
You’re Not Alone — And You’re Not Powerless
Feeling overwhelmed is completely normal. Auctions are designed to be fast and emotional. But knowing the process, preparing your finances, and having a plan makes all the difference. Many first-home buyers have successfully navigated auctions, and understanding the process can help you feel more prepared.
Want to go from overwhelmed to auction-ready? Download our free First Home Buyer e-book, packed with expert checklists, auction tips, scripts, and step-by-step guidance to help you prepare, bid confidently, and buy smart. It’s your go-to guide from deposit to keys, and a helpful resource to guide you through the auction process and increase your understanding.
