If the highest bid does not reach the reserve the property may be “passed in” meaning it does not sell at auction but the highest bidder may have the first chance to negotiate afterwards.

Auctions can be live (in person), online or hybrid and each has slightly different procedures. Familiarise yourself with the type of auction you are attending and the terms of sale announced by the auctioneer on the day.

Step 2: Research Properties Thoroughly

Successful bidding often starts long before the auction day. Reviewing the auction catalogue with care can help identify properties that align with the budget and criteria. Key details such as the guide price, location and property condition are worth close attention.

Property viewings, when available, provide valuable insight into the condition of a property before purchase. Some buyers choose to inspect the property themselves or hire a surveyor to assess the condition and identify any costly repairs. This will help in estimating renovation costs and avoiding surprises after purchase.

It is also important to examine the legal pack provided by the auction house. This includes title deeds, searches and any special conditions of sale. Review by a solicitor helps ensure that no hidden legal issues or restrictive agreements compromise ownership.

Step 3: Get Your Finances in Order

In most property auctions a 10% deposit is payable immediately after a successful bid, with the remaining balance typically due within 28 to 30 days. This structure means that financing arrangements such as mortgage pre-approval or readily available funds should be secured in advance to ensure the purchase can be completed within the required timeframe.

Given the time-sensitive nature of auction purchases, it is helpful to work with lenders who have experience in this area. It is also important to consider the full cost of the purchase, including any potential repairs, buyer’s premiums and legal fees to ensure the bid stays within a comfortable financial range.

Step 4: Attend Auctions to Observe

If you are new to auctions, attending a few as an observer before engaging in bidding can be a valuable learning experience. Whether in person or online, watching experienced bidders and listening to the auctioneer’s calls will help in understanding the pace, bidding increments and overall auction etiquette.

This exposure can build one's confidence and help in understanding bidding patterns and strategies used by seasoned buyers.

Step 5: Plan Your Bidding

Having a clear maximum bid in mind before auction day can help maintain focus and avoid bidding beyond what is financially comfortable. This limit is usually shaped by careful research and budgeting.

Bidders often consider their approach in advance whether to begin with smaller increments or go in with a strong final offer, depending on what the auction platform allows. Paying attention to the auctioneer’s cues and other bidders’ behaviour can provide useful context. In some cases, bidding in uneven increments may interrupt the rhythm of competing bids.

Most auctions also require pre-registration, so it is worth ensuring all registration steps are completed ahead of time to avoid any last-minute issues.

Ready to dive into property auctions? Browse current listings and discover a range of properties available in your area.

Step 6: Auction Day

Arriving early on the auction day allows time to register and settle in or, for online auctions, to check that the setup is working smoothly. The auction typically begins with the auctioneer outlining the terms of sale and calling for opening bids.

During the auction bids are made either by raising a paddle or clicking the bid button, depending on the format. A successful bidder is required to sign the contract immediately and pay a 10% deposit on the spot. This forms a legally binding agreement, unlike traditional property sales where contracts are exchanged at a later stage.

Step 7: After Winning the Bid

Winning the bid sets the clock in motion, with the remaining balance typically due within 28 to 30 days. During this period close coordination with the solicitor is key to finalising the paperwork and ensuring a smooth completion process.

Failure to complete the purchase can result in the loss of the deposit and face legal consequences, which is why thorough preparation before bidding is so crucial. It is important to keep in mind that even with all the right preparation first-time bidders can easily fall into some common traps that could lead to costly mistakes or missed opportunities. Awareness of these challenges can support better decision-making and improve the likelihood of securing a suitable property at a favourable price.

Here's how to avoid some of the common mistakes:

Guide prices can be misleading: Guide prices are often set low to attract bidders and may not reflect the true market value. Establishing a maximum price based on thorough market research can provide a realistic benchmark.

Emotions can drive up bids: A clearly defined budget helps prevent overspending during competitive bidding.

Thorough due diligence matters: Inspecting the property and reviewing all legal documentation reduces the risk of unforeseen issues after purchase.

Be aware of additional costs: Additional expenses such as buyer’s premiums, legal fees and renovation costs can significantly affect the total outlay.

Familiarity builds confidence: Regular exposure to auctions, whether in person or online, can build familiarity with the pace, etiquette and bidding patterns of the process.

While property auctions can offer opportunities to purchase at competitive prices, the process is legally binding thus making thorough preparation and professional guidance is crucial. With a clear bidding strategy and knowledge of what to expect on the auction day bidders can approach the process with greater confidence.

Beginner’s Guide to Buying at Property Auctions

Step 1: Get to Know How Property Auctions Work