Buying a property at auction can be an intense and fast-paced experience. With no cooling-off period and a legally binding contract signed on the spot, buyers need to be fully prepared before raising their hand.
If you’re planning to bid at an auction, having a clear strategy can make all the difference between walking away empty-handed and securing your dream home.
From financial readiness to smart bidding tactics, here’s how to set yourself up for success.
Preparing for auction day
Know the market
A strong bidding strategy is only useful if your finances and paperwork are in order before auction day.
Understanding local market trends will help you determine a realistic price range for the property you’re interested in. Research recent sales of comparable properties in the area, attend inspections, and monitor clearance rates to gain insight into expected bidding competition.
Secure your finances early
Unlike sales by private treaty, where negotiation is possible, auctions require an immediate financial commitment. Ensure you:
- Have secured pre-approval from your lender.
- Understand your borrowing capacity and factor in additional costs like stamp duty, legal fees, and moving expenses.
- Have the required deposit (usually 10% of the sale price) ready to transfer on the day.
Get the contract reviewed
Auction purchases are unconditional, meaning there’s no room for negotiation after the hammer falls. Before bidding, have a solicitor or conveyancer review the contract to identify any risks or unusual conditions that could impact your purchase.
Attend auctions as an observer first
If you’ve never bid at auction before, watching how they unfold can be invaluable. Attend a few auctions to get a feel for different bidding styles, the auctioneer’s rhythm, and the emotional intensity of the process.
Bidding strategies to win at auction
A well-thought-out bidding strategy can help you stay in control and increase your chances of securing the property. Here are some proven tactics:
Open the bidding with confidence
Making a strong opening bid close to the reserve price can eliminate hesitant bidders and set the tone for the auction. A confident first bid shows that you’re serious, potentially discouraging those with lower budgets.
Disrupt the rhythm with odd bidding increments
Auctioneers prefer round numbers as they create a steady flow, but breaking this pattern can disrupt momentum. Instead of increasing in $5,000 or $10,000 increments, bid in odd amounts like $3,500 or $7,800 to slow down the auction and make it harder for others to predict your next move.
Wait and strike late
Some buyers prefer to hold back and wait until bidding slows before entering. By letting others battle it out, you can gauge competition and step in when many have reached their limit. However, this approach carries the risk of the auction concluding before you have the chance to bid.
Know when to walk away
Setting a firm maximum bid before auction day will prevent you from getting caught up in the heat of the moment. Bidding beyond your budget can put you under financial strain, so be prepared to step back if the price exceeds what you’re comfortable paying.
What if your funds aren’t ready?
One of the biggest challenges buyers face at auction is securing funds in time. If you need access to funds before settlement, whether to secure your next purchase or cover additional costs, Equity Flow provides a flexible solution.
How Equity Flow helps buyers at auction
One of the biggest challenges buyers face at auction is having their finances lined up in time. Winning the bid is one thing, but if your funds aren’t immediately available, you could risk losing out on the property altogether.
That’s where Equity Flow comes in. It gives you access to up to $250,000 ahead of settlement, so you’re never caught off guard when the right home comes along.
With Equity Flow, you can bid with confidence, knowing that your deposit, fees, and even bridging finance are covered. No more scrambling for funds at the last minute or worrying about whether your current home will sell in time. If you’ve found your dream property but haven’t settled on your existing one, Equity Flow gives you the flexibility to secure your next home first, putting you in control of your move rather than being at the mercy of market timing.
And the best part? Repayments are structured to work around you. No rushed sales, no unnecessary pressure, just a smarter way to move forward. So, when you step into an auction, you can focus on the bidding strategy that works for you, not on whether the bank will clear your funds in time.
Final thoughts
Buying a property at auction can be an exhilarating but high-pressure experience. With the right strategies in place, thorough research, confident bidding, and a clear financial plan, you can put yourself in the best position to succeed.
But beyond tactics, having the financial flexibility to act quickly is just as important. That’s where Equity Flow can make all the difference, ensuring you have access to the funds you need when you need them.
Instead of missing out on your ideal home due to financing delays, Equity Flow gives you the confidence to bid boldly and secure your next property without the stress.
So, as you prepare for auction day, remember; knowledge, strategy, and financial readiness are your best assets. With a strong plan and the right support in place, you’ll be bidding with confidence and one step closer to securing your dream home.