Buying a Home at Auction

Buying a house at auction can certainly be stressful! But it's one of the most common ways to buy property in Australia. There's an art to winning a home auction – so don't miss our top 5 home auction tips for buyers, and make sure you get the best deal on the property you want.

1. Know your area

Research the prices of other homes in the area – compare similar properties and think about the unique advantages or disadvantages of this home. Ask the agent if any offers have been made, and what sort of price they are expecting. And go to a few auctions in that area before the big day – practise bidding if you like, but don't get carried away!

2. Set your limit – and stick to it

Set an uneven limit – for example, $456,500 instead of $450,000. Some bidders may drop out at the last $500. If you think you might lose your cool on the day, get a friend to bid on your behalf (and make them stick to the limit). Or consider using a buyer's agent to help you bid.

3. Get everything in order first

Make sure your home loan is approved and that you can pay the deposit (usually 10%) on the day of the auction. Get your solicitor to check the contract of sale and any other paperwork, and look at a building and pest inspection before you commit to buy.

4. Be confident

Winning an auction takes some confidence. Think about how you present yourself – if you're dressed like you can afford the property, the other bidders will take you seriously. And make sure the auctioneer can see your bid – don't be shy!

5. Know your auction rules

There is no cooling off period at an auction – if you're the winning bidder, you have committed to buy it. If the property is passed in below the reserve price, then the highest bidder has the right to negotiate first with the owner. So if you're serious about this property, make sure that person is you.

Once you've exchanged contracts, make sure your home building insurance is in place. It will give you extra peace of mind as you arrange the last details, move in, and make the place your very own!