If the highest bid doesn’t reach the reserve the property may be “passed in” meaning it doesn’t 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 your budget and criteria. Key details such as the guide price, location and property condition are worth close attention.

Whenever possible, arrange property viewings where possible. Some buyers also 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. Having a solicitor review these documents to ensure there are no hidden legal issues or restrictive agreements that could affect your ownership.

Step 3: Get Your Finances in Order

Auction purchases usually require a 10% deposit immediately after you win the bid with the balance due within 28-30 days. So you need to have your finances in order before you start bidding. Get pre-approval for a mortgage or make sure you have the cash.

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 you start bidding can be a valuable learning experience. Whether in person or online, watching experienced bidders and listening to the auctioneer’s calls will help you understand the pace, bidding increments and overall auction etiquette.

This exposure can build your confidence and help you understand 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's 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

On the auction day, arriving early allows time to register and settle in, or, for online auctions, to check that your 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. If you win, you will be asked to sign the contract immediately and pay the 10% deposit on the spot. This is a legally binding contract unlike traditional property sales where contracts are exchanged later.

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 your solicitor is key to finalising the paperwork and ensuring a smooth completion process.

Failure to complete the purchase can result in the loss of your 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. Being aware of the pitfalls that often catch newcomers off guard, you can make smarter choices and increase your chances of landing the perfect property at the best price.

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

Guide prices can be misleading: It’s often set low to attract bidders. Set your own maximum price based on thorough market research.

Emotions can drive up bids: Stick to your budget and don’t get caught in bidding wars.

Thorough due diligence matters: Never bid without inspecting the property and reviewing legal documents.

Be aware of additional costs: These can include buyer’s premiums, legal fees and renovation expenses.

Familiarity builds confidence: The more you observe the more comfortable you will become with 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, you will be ready to bid with confidence. Good luck with your first auction!

Beginner’s Guide to Buying at Property Auctions

Step 1: Get to Know How Property Auctions Work