Buying at auction requires thorough preparation, including research of comparable local sales and Melbourne property market predictions. It also involves having a finance pre-approval in place so you can know your maximum bidding limit. This will prevent you from being caught up in the hype of the auction day, pushing you past your logical limit and ending up with an overpriced property.

What’s the best auction site?

During an auction, the property is usually open for inspection for a final time. This is a good opportunity to do last minute cupboard and bathroom checks and scope out the neighbourhood, paying particular attention to noise levels and traffic flow. You can also have a final look at the relevant paperwork and terms of settlement. This is an important step as once the auctioneer’s hammer hits, the sale becomes binding and there are no cooling off periods.

The winning bidder will need to pay a deposit on the spot, typically 10 per cent of the sale price, which must be paid within 24 hours. The deposit is usually a cheque payable to the seller’s real estate agency. Auction Bidding Service Melbourne are some instances when the buyer can agree to a different deposit amount with the vendor prior to the auction date, however this is rare.

If you are unable to attend auction day, it is possible to register to bid with the real estate agent, or a buyers agent licensed by Consumer Affairs Victoria. This must be done prior to the day and generally includes a signed letter of authorisation, a copy of your identification documents and your deposit cheque.