Auction
A public sale where buyers bid against each other and the property sells to the highest bidder once the reserve price is met.
- Sale is unconditional on the fall of the hammer
- No cooling-off period in NSW
- Finance and checks must be done before bidding
How it works
The vendor sets a confidential reserve price. If bidding reaches it, the property is sold to the highest bidder, who signs the contract and pays the deposit immediately. If not, it is passed in, usually to the highest bidder to negotiate.
Preparing to bid
Have finance approved, the contract reviewed by your solicitor, inspections done and a firm walk-away price set from comparable sales.
Set your limit before auction day and keep to it. Auctions reward preparation, not emotion.
Common questions
Can I make an offer before auction?
Often yes. Some vendors accept strong pre-auction offers.
What happens if a property is passed in?
The highest bidder usually gets the first chance to negotiate with the vendor.
Related terms
Sources
General information only. It does not consider your objectives, financial situation or needs, and is not financial, credit, tax or legal advice. Rules change, so check current law and get advice from a licensed professional before acting.