{"id":791,"date":"2026-09-02T07:26:29","date_gmt":"2026-09-02T07:26:29","guid":{"rendered":"https:\/\/bmgplay.com.au\/donna2\/?page_id=791"},"modified":"2026-09-02T08:03:02","modified_gmt":"2026-09-02T08:03:02","slug":"auction-facts","status":"publish","type":"page","link":"https:\/\/bmgplay.com.au\/donna2\/auction-facts\/","title":{"rendered":"Auction Facts"},"content":{"rendered":"\t\t
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Auction Facts<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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Buying property at auction<\/h3>

You need to prepare before buying a home at auction. Try to go to a few auctions first to see how they work.<\/p>

There is\u00a0no\u00a0cooling-off period<\/strong>\u00a0for buying at auction. If you are the successful bidder at the auction, you will have to settle the contract even if:<\/p>

  • the house doesn\u2019t pass inspections<\/li>
  • you change your mind<\/li>
  • you can\u2019t afford it.<\/li><\/ul>

    The cooling-off period also does not apply to a private treaty contract:<\/p>

    • entered into within 2 business days of an unsuccessful auction of that property<\/li>
    • in which the buyer was a registered bidder at the auction.<\/li><\/ul>

      The terms of sale usually require you to bid on an unconditional basis. This means you cannot have any conditions, such as:<\/p>

      • subject to finance<\/li>
      • subject to the completion of another sale.<\/li><\/ul>

        Before the auction<\/h3>

        Before the auction, make sure you:<\/p>

        • inspect the property<\/li>
        • arrange your finance<\/li>
        • get a property valuation<\/li>
        • do your own research of the market<\/li>
        • get a copy of\u00a0the contract<\/li>
        • get legal advice about the terms and conditions in case you\u2019re the successful bidder.<\/li><\/ul>

          Make sure you ask the agent about:<\/p>

          • how much deposit they will ask for (as a percentage of the winning bid)<\/li>
          • how you\u2019ll need to pay it (a personal cheque, bank cheque or deposit bond is usually okay).<\/li><\/ul>

            It\u2019s illegal for a seller or their agent to give you a price guide for an auction property. This is because they cannot know how high the bidding will go.<\/p>

            A property may appear on a listing website when you search by price. This is only for the purposes of the web search, and is not designed as a price guide. The website should give you a statement that explains this.<\/p>

            Sometimes, an auctioneer may offer you a comparative market analysis (CMA). This is a document that offers you information about what similar properties have sold for in the same area. They can only give you this document with the seller\u2019s approval.<\/p>

            Remember to do all the necessary checks, such as a:<\/p>

            • a\u00a0title search<\/li>
            • a\u00a0building inspection<\/li>
            • a\u00a0pest inspection<\/li>
            • a\u00a0land tax clearance search<\/li>
            • a\u00a0swimming pool inspection\u00a0(if relevant).<\/li><\/ul>

              At the auction<\/h3>

              Set a budget before the auction and stick to it.<\/p>

              If you are the successful bidder, you will have to settle the contract, even if you can\u2019t afford it.<\/p>

              Registered bidders<\/h3>

              If you want to bid:<\/p>

              • ask if there have been late changes to the contract<\/li>
              • ask any questions you have about the property<\/li>
              • register<\/li>
              • check the required deposit<\/li>
              • check your inspection details<\/li>
              • any other relevant details.<\/li><\/ul>

                Only registered bidders can bid.<\/p>

                Reserve price<\/h3>

                The reserve price is the minimum sale price that the seller will accept. The seller sets the reserve price but doesn\u2019t have to set a reserve price, but most will choose to have one.<\/p>

                Once the reserve price is reached during bidding (or no reserve price is set), the property will be \u2018on the market\u2019.\u00a0Once a property is on the market, it means the auction must result in a sale. The winning bidder must purchase the property, and the seller must sell.<\/p>

                If the property doesn\u2019t reach the reserve price, you can negotiate with the seller after the auction. If this leads to a sale within 2 days of the auction, you will not get a\u00a0cooling-off period.<\/p>

                If you reach an agreement more than 2 days after the auction, you will have access to a cooling-off period.<\/p>

                The successful bidder<\/h3>

                If you are the successful bidder, you must sign a contract immediately.<\/p>

                There are very serious legal consequences if you cannot settle the sale on time. You may be forced to pay:<\/p>

                • the amount of your winning bid, regardless of whether you had access to the money<\/li>
                • the cost of re-auctioning the property<\/li>
                • any shortfall between your offer and the winning bid at the next auction.<\/li><\/ul>

                  Dummy bids<\/h3>

                  A dummy bid is an attempt to raise the bidding, after the reserve price has been reached, by:<\/p>

                  • the seller<\/li>
                  • their family or friends<\/li>
                  • the auctioneer<\/li>
                  • any other \u2018planted\u2019 individual.<\/li><\/ul>

                    Dummy bids are illegal.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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                    Conveyancing<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
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                    Finance<\/h2>\t\t\t\t<\/div>\n\t\t\t\t
                    \n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\"\"\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

                    Auction Facts Buying property at auction You need to prepare before buying a home at auction. Try to go to a few auctions first to see how they work. There is\u00a0no\u00a0cooling-off period\u00a0for buying at auction. If you are the successful bidder at the auction, you will have to settle the contract even if: the house…<\/p>\n","protected":false},"author":3,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"elementor_header_footer","meta":{"footnotes":""},"class_list":["post-791","page","type-page","status-publish","hentry","texture-woo-product-list","opn-qv-enable","real-estate-elementor-woo-hover-","open-single-product-tab-horizontal","open-shadow-","open-shadow-hover-"],"_links":{"self":[{"href":"https:\/\/bmgplay.com.au\/donna2\/wp-json\/wp\/v2\/pages\/791","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bmgplay.com.au\/donna2\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/bmgplay.com.au\/donna2\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/bmgplay.com.au\/donna2\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/bmgplay.com.au\/donna2\/wp-json\/wp\/v2\/comments?post=791"}],"version-history":[{"count":10,"href":"https:\/\/bmgplay.com.au\/donna2\/wp-json\/wp\/v2\/pages\/791\/revisions"}],"predecessor-version":[{"id":803,"href":"https:\/\/bmgplay.com.au\/donna2\/wp-json\/wp\/v2\/pages\/791\/revisions\/803"}],"wp:attachment":[{"href":"https:\/\/bmgplay.com.au\/donna2\/wp-json\/wp\/v2\/media?parent=791"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}