Auction day: what actually happens from 30 minutes out

If you have never attended an Australian property auction as a bidder, the thirty minutes before the hammer falls feel much more compressed than the marketing video suggests. Here is what actually happens, in order, and what to do with yourself.

T-minus 30: registering

You arrive, collect your bidder card from the agent’s assistant, and hand over 100 points of ID. Your registered bidding paddle has a number. Anyone without a paddle is not bidding, including partners, family, and anyone you thought was going to help hold your nerve.

T-minus 20: reading the room

Watch who else is registering. A genuine field of 4-6 registered bidders is a competitive auction; a field of 1-2 with a thin crowd means the reserve might be soft. The auctioneer’s demeanour will tell you as much as the number of paddles.

T-minus 10: auctioneer opens

The auctioneer reads the contract terms, confirms the deposit (typically 10% of the winning bid, payable on the day), and reads out any vendor bids authorised under state law (these are the auctioneer bidding on the vendor’s behalf below reserve, and are legal but must be disclosed in NSW and VIC).

T-0: bidding opens

The first bid is often the vendor bid. Real bidders should not open at the auctioneer’s suggested opening. Wait. A common opening strategy is to let the first vendor bid sit, then come in at your level. If you are one of only two genuine bidders, bid increments of $10k or $20k; smaller increments prolong the auction and usually push the price higher.

The “on the market” moment

When the property has reached the reserve, the auctioneer will announce “on the market” or “I’m now selling”. Every bid after this point is a real bid against a real buyer. Bids before this point may be against the vendor’s invisible reserve.

Hammer down

When the auctioneer says “going, going, gone” and strikes the hammer, you are contractually bound to complete the purchase. No cooling-off period applies to an auction sale. You will be ushered into a side room to sign the contract and hand over the deposit (usually by cheque or electronic transfer, confirmed on the spot).

After the hammer

If the property is passed in and you are the highest bidder, you have the first right to negotiate with the vendor. This is often where a passed-in property actually sells, 30-60 minutes after the auction, at a price below the reserve. A good buyer’s agent will still be negotiating at 1pm on a 12pm auction.

One rule above all

Decide your hard ceiling before you leave the house, write it on a post-it, and do not exceed it. Every buyer in every auction who regrets the purchase regrets exceeding their pre-set ceiling.