For many first home buyers, the idea of attending a property auction is both thrilling and terrifying. The fast pace, the competition, and the pressure can make it easy to make emotional decisions. But with the right preparation, you can walk into your first auction with confidence — and walk away with the keys.
1. Secure Pre-Approval Before You Do Anything Else
Before you raise your hand at an auction, you need formal pre-approval from your lender. This tells you exactly how much you can spend — and more importantly, stops you from bidding beyond your budget. Remember, auction purchases in Australia are unconditional. There’s no cooling-off period, no backing out, and your deposit (usually 10%) is due immediately.
2. Do Your Homework
Visit several auctions before your own so you can observe the rhythm, bidding strategies, and typical sale prices. Then, research comparable sales (“comps”) in your desired area. This gives you a realistic sense of what properties are worth — not just what the listing price suggests. A good buyer’s agent or broker can also help you analyse recent trends and median prices.
3. Set a Firm Budget and Stick to It
Once you’ve calculated your maximum bid, reduce it slightly to give yourself breathing room. Auctions can be emotionally charged; it’s easy to get caught in the moment. Having a walk-away point ensures you don’t stretch your finances beyond what’s safe. Remember, if you miss out, another opportunity will come — but financial stress lingers.
4. Understand the Rules of the Auction
Each state and territory has slightly different regulations. Know the conditions for registration, deposit payment, and settlement before auction day. Review the Contract of Sale with your solicitor or conveyancer in advance — they’ll flag any unusual clauses or risks.
5. Have Support on the Day
Even confident bidders can benefit from a second set of eyes and ears. Bring your broker, partner, or a trusted friend who can keep you calm and focused. If possible, get a building and pest inspection done before the auction so there are no hidden surprises.
Winning at auction is as much about preparation as it is about price. With the right strategy and support, first home buyers can bid with confidence and clarity — not fear.
Need help?
Thinking about attending your first auction? Let’s make sure you’re ready. Contact Chase today for expert guidance, pre-approval support, and insider tips on bidding smart.