Auction FAQs

Auctions can be overwhelming, especially if it’s your first time, but preparing is the best way to make the auction process feel less scary and be on your way to a successful purchase.

• Reach out to your local agent. Your agent is your secret weapon; keep in close contact so they can help you navigate the process and share insights on the current market and comparable sales
• Apply for, and secure, your pre-approval so you’re ready to bid
• Arrange your building and pest reports early
• Attend other open homes and auctions to understand the market and process more, observe different auctioneer styles and experience the dynamic of a live auction

South Australia Chief Auctioneer, John Morris, says; "If you’re considering buying, and especially in the current climate and how it is, you should definitely go along [to an auction] and see how the agent runs an auction. There's nothing wrong with going and registering to bid at an auction and putting a bid in even if it's stupidly low. I personally love it when someone comes and practices bidding on one of my auctions."

Queensland Head of Recruitment and Auctioneer, Georgia Turner, says; "If I was looking to purchase a home, I would be building those relationships with the agent as soon as possible. It's so important to align with market leaders. They have all the knowledge. They go into the most homes. They have the research. They have the data. They know exactly what's going on and what is going to happen on auction day. They're there to support you. They're obviously working for the vendor, but they also have your best interest at heart."

Registering is a simple process where you’ll need to provide a form of identification (such as a driver’s license or passport) and fill out a bidders form with the agent. You’ll then be assigned a bidder paddle number.

You can register up until the moment the auction starts. However, it’s highly recommended to register prior to auction day. Registering early relieves nerves, gives you a clear mind, and allows you to collect your paddle and find a good vantage point before the bidding begins.

Registration is mandatory in NSW, QLD, and SA, but not currently required in VIC.

Technically, yes, you can still bid, however, it’s strongly recommended that you have your pre-approval in place before auction day. Pre-approval gives you the confidence to know exactly how much you can bid and ensures you are prepared for the unconditional nature of an auction contract.

Not at all. Many people successfully buy their first home at their very first auction. While it’s normal to be nervous, auctioneers are there to help guide you through the process. The more prepared you are, the more confident you’ feel on auction day.

We asked some of our Ray White auctioneers for their advice on how and when to bid:

"The best advice is: don't miss the moment. Many buyers make the mistake of hanging back too long and missing their chance. Getting in early - even if you aren't the very first person to bid - helps settle your nerves and sends a clear message to your competition that you are there to buy."

"Preparation is the best cure for nerves. Have a clear plan before you arrive:

• Know your starting number: Where do you want to open?
• Know your limit: What is the absolute maximum you will pay?
• Keep it moving: Consistent, quick bids often show more strength than waiting until the last second."

The auctioneer will make this very clear on the auction floor. They will guide the journey by asking for specific increments (e.g., "$1,000 bids") to ensure everyone feels comfortable and understands the current price and where the bidding needs to go.

Common rises are generally $10,000, $20,000, $25,000, or even $50,000 to $100,000 for multimillion-dollar properties. Toward the very end of an auction, the increment can drop as low as $500 to ensure everyone has had a final chance to bid.

While big jumps are intended to scare off competition, they can backfire if you hit your limit too quickly. A more powerful tactic is to stick to smaller increments but be very fast with your bids. Responding immediately shows strength and indicates that you aren't going to stop.

You can suggest any bid amount you are comfortable with, even if it differs from the auctioneer’s preferred increment. However, keep in mind that the auctioneer has the sole right to reject any bid that they do not deem to be in the best interest of the seller.

Yes technically an auctioneer can reject a bid. It’s important to remember that the auctioneer has the best interest of both the vendor and the buyer, and will guide the auction to aim for a great solution for all parties involved. The auctioneer will ask for specific increments, and if a bid doesn’t meet that they can come back with a recommendation for you to say yes or no as the bidder.

Stand in a position of prominence where both the auctioneer and the rest of the crowd can see you. Bidding from a visible spot with confidence can deter other bidders by showing that you are serious about the property.

Yes, you can use a proxy bidder, such as a trusted friend or family member. You’ll need to complete the necessary legal forms (which may vary by state) before the auction begins. Your proxy bidder can either sign the contract for you, or if you are there with them they can bid for you and then you can sign the contract, as long as the auctioneer and the agent are in agreement that you’re going to sign the contract with your name afterwards.

Typically only good things happen if you are the leading bidder at any point in time. You either buy the property if it's over the reserve price or you do have that first right to negotiate with the seller.

Sales performance executive Victoria and Tasmania and auctioneer, Jake McIntyre, said; "Bid quickly against your competition because your competition will perceive that you've got an infinite budget. We can't control what our competition does. You've got to focus on you, you've got to stick hard to your budget."

While you can wait, bidding confidently and early is often more effective. Waiting for the final call can be a strategy to give yourself time to think, but it may also encourage the auctioneer to speed up the process to draw out a decision.

You can bid at any time until the hammer officially falls. However, you must act quickly. Once the hammer comes down, the property is legally sold, and no further bids can be accepted.

Don't panic - mistakes happen. You can either announce the error directly to the auctioneer and tell them what you intended to bid, or tap a staff member on the shoulder for assistance. They can help retract or correct the bid on your behalf.

Congratulations! There’s nothing quite like the feeling of pure excitement when you have the winning bid. Usually the agent will take you inside the home or aside from the crowd to sign the contract and any other paperwork, and arrange the deposit payment. Whether the deposit - or part of - is due on the same day will depend on your state, so make sure to confirm with your local agent so you know what to expect.

It’s also important to know the home is now at your own risk. The owner will still maintain their insurance right up until settlement date when you get the keys, but you've also got an equal interest in the home, so you do need to take out your own insurance.

Don't be discouraged! The best way to find a similar home is to connect with a local agent you trust. By building a relationship with an agent, you can get early access to new listings before they hit the major websites. If the agent or associate are available after the auction, you could have a chat with them about what you’re looking for, or get in touch with them after the auction.

A key factor of auction is the transparency, as it offers you as as both a buyer and a seller. As a buyer you can choose whether you want to outbid somebody by a thousand dollars or by five hundred dollars you know and when when you eventually buy it you know that next person was a thousand dollars below you so you've paid market value. That's great and I guess in that it kind of gives you a sense of control.