When it comes to buying property at auction, being fully prepared can make all the difference. If you’re looking for property auction tips, you’ve come to the right place. With nationwide auction clearance rates climbing and more homes being listed for auction than we’ve seen in over 18 months, now is the perfect time to get your strategy in place. Two homes on the latest season of The Block failed to sell under the hammer—but across the broader market, the results tell a different story. Clearance rates in capital cities are running at around 72 %, compared to 59.5 % this time last year. With demand heating up, using strong property auction tips could put you in the driver’s seat.
Why You Need Smart Property Auction Tips Before You Bid
When you’re bidding at auction, every move matters. Whether you’re a first-time buyer or seasoned investor, applying effective property auction tips ensures you’re not caught off-guard by the pace, the psychology, or the cost of auction-day decisions.
In today’s dynamic real-estate market, more homes are being sold at auction—and more buyers are registering, inspecting and prepping than ever before. If you want to succeed, you need a combination of preparation, budgeting, confidence and strategy. Here are the five key areas where applying property auction tips can boost your chances of winning (and avoiding mistakes).
1. Know your borrowing power
One of the most fundamental property auction tips is: get your finances sorted early. Having a firm understanding of how much you can borrow gives you the foundation for your bidding strategy. Online calculators are useful, but they often provide broad estimates that may not account for your full situation. Instead:
- Speak with a mortgage specialist who will assess your income, expenses and overall credit capacity.
- Secure a pre-approval for a home loan so you know the maximum you can spend and can bid confidently.
- Remember: a pre-approval is subject to valuation and conditions, but it gives you a defined upper limit so you’re not making guesses at the auction.
When you go to the event, you’ll feel much more prepared and able to focus on the property—not whether your finance is in order.
2. Set a realistic buying budget
Another essential tip is to calculate your full budget before you bid. Many buyers focus on the purchase price but overlook the upfront costs that come with a property auction:
- Stamp duty (which varies by state/territory)
- Conveyancing or solicitor’s fees
- Building and pest inspection costs (if applicable)
- Deposit amount required on auction day (typically 10 %)
- Potential renovation or repair costs after purchase
By factoring in all these costs, you avoid being stretched too thin. This is critical because once your bid is accepted, the sale becomes legally binding—with no cooling-off period in many states. As the official NSW guide states: you must be ready to sign the contract and pay the deposit once the hammer falls.
3. Have your home loan pre-approved
Securing pre-approval is one of the most powerful property auction tips you can apply. Why? Because at auction you don’t have the luxury of a long negotiation period. When the hammer goes down:
- You’ll be required to sign the contract immediately (or very soon after) and pay the deposit. Pepper Money+1
- If you haven’t been pre-approved, you risk losing the property—or worse, over-committing and getting into financial trouble.
With pre-approval you’re bidding within your known limit and can stay confident and composed, rather than making emotional decisions under pressure.
Contact us today to discuss your borrowing power and arrange a pre-approval.
4. Review the contract with legal specialist
One of the least-emphasised yet most vital property auction tips is: have the contract reviewed before auction day. Auctions are legally binding—they’re not like private treaty sales where you may have a cooling-off period. coposit.com.au+1
Key recommendations:
- Get your solicitor or conveyancer to check for any special conditions, settlement terms, encumbrances, building or zoning restrictions and strata (if applicable).
- Confirm you understand the payment schedule (deposit, full settlement date).
- Some properties may pass in at auction if the reserve price is not met; being the highest bidder still gives you negotiation rights. Century 21 Novocastrian+1
- Ensure all your questions are answered before you walk into the bidding room—there’s no going back.
5. Do your pre-purchase checks
Finally, don’t skip the inspection, pest/building report and strata checks (if applicable). Among the best property auction tips: identify risks before you bid. The last thing you want is to find out mid-settlement about costly repairs or legal issues.
Here’s what to do:
- Visit the property more than once, including outside peak times, inspect the area and speak to neighbours if you can.
- Order a professional building and pest inspection if necessary.
- For apartments/townhouses: get a strata report, review levies, recent works and by-laws.
- Be aware that failing to do these checks may leave you liable for unforeseen costs after purchase.
Why Auctions Are Still a Strong Option
Despite the risks, many sellers and buyers favour auctions especially when clearance rates are high and more properties are being listed. For buyers, the transparency of competition, the ability to see the market in real time, and decisive outcomes can be major advantages.
If you apply the property auction tips above, you position yourself well for these benefits and importantly, reduce the chance of being caught off-guard.
In summary, securing success at auction doesn’t happen by chance—it’s about preparation, budget discipline, and smart strategy. Use these tried-and-true property auction tips to approach the market with confidence. When you know your borrowing power, understand the contract, have completed inspections and set a firm budget, you’re far more likely to walk away as a winner.
Ready to take the next step? Get in touch with us now and let’s make a plan together so your auction purchase is a success.
👉 Call today or send us a message, and let’s get you auction-ready!
Phone: 1300 855 022
Email: clientservices@zippyfinancial.com.au
Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business.
About the Author:
Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.
Connect with Louisa on Linkedin.
Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).