What to Check Before You Bid at Auction

An auction is a poor time to discover a contract condition or decide what you can afford. Work through the important checks before you decide to bid.

Ask a conveyancer or solicitor to review the contract early. Pay attention to settlement dates, special conditions and anything that changes your costs or obligations. The rules and contract terms vary, so get advice for the property and state you are buying in.

Arrange building and pest inspections before auction day. If the property is part of an owners corporation or strata scheme, read the records and recent meeting minutes as well as any summary report. The inspection and contract review can affect whether you bid at all, not just the price you offer.

Check recent comparable sales and decide what the property is worth to you. Include purchase costs in your budget, then set a firm maximum before you arrive. If someone else is bidding on your behalf, agree on that limit and how you will communicate.

If you have not attended an auction before, watch a few first. It helps you understand the pace and process, but it does not replace preparation. A clear limit gives you a basis for stopping if the bidding goes beyond what works for you.