Sydney auctions move fast – and even the most motivated buyers can struggle to keep up.
What might appear as an impulsive decision on auction day is usually the outcome of careful preparation – both for sellers aiming for the best result, and buyers wanting to secure the right home.
In NSW, an auction isn’t a negotiation; it’s a commitment made well before the day, tested in real time. So if you’re planning to bid, here’s the conditions to have you confident well before the crowds gather.
1. The contract always comes first.
When it comes to auctions in NSW, the fall of the hammer isn’t ‘symbolic’ – it’s binding. There’s no cooling-off period, no re-negotiation window, and no ‘we’ll sort that out later’.
The auction process assumes that buyers have done their due diligence before the auction begins, so it’s perhaps a little less forgiving than other methods of sale.
Before auction day, this means buyers should:
- Have the contract of sale reviewed by a solicitor or conveyancer
- Understand any special clauses, easements etc
- Review building and pest reports, or a strata review for apartments
- Negotiate or request any changes such as to the settlement, deposit etc in writing, well in advance
If the contract has you hesitating, auction day isn’t the time to solve it.
2. Finance should be secured before auction day.
If your loan pre-approval is still a moving component by the auction, you’re technically not ready to buy.
The same guidance applies for placing an offer on a private treaty sale; successful buyers typically have unconditional finance secured. In an auction, this will mean you know your limit or ‘walk-away’ price, as well as how you will pay a deposit on the day.
Pro tip: Some banks enforce daily limits on bank transfers – so if you’re planning to make the winning bid (and settle the deposit without delay), be sure to increase your transfer limit at least 24 hours before the auction starts.
3. You can’t bid if you’re not registered.
It may sound obvious, but registration trips up buyers at every auction!
In NSW, you must be registered and issued a bidder’s number in order to bid at an auction. Here’s what that typically involves:
- Providing your details to the selling agent – such as proof of identity
- Receiving your bidder’s number from the agent
This can usually be done while inspecting the property at an open, a few days in advance, or on the day of the auction (depending on the agent and sale).
4. Plan your strategy before the emotions hit.
Let’s face it, auctions are intense. The pace, the pressure and the crowd can have even the most experienced buyer second-guessing their decision.
Pro tips to prepare for the big day:
- Know your absolute limit, stick to it – and have a partner or friend there to pull you up at crunch time.
- Have a plan for how you’ll bid; e.g. bidding early to signal interest, or waiting until bidding slows.
Buyers who perform best at auctions are calm, informed and deliberate, only through the preparation laid out above. Some solid groundwork will guarantee clarity come auction day, so that you can either buy well, or walk away confidently.
Prudential Real Estate Macquarie Fields | (02) 9605 5333 | macquariefields@prudential.com.au
Prudential Real Estate Narellan | (02) 4624 4400 | narellan@prudential.com.au
