EXAMPLE
Example townhouse in Richmond
Richmond, VIC 3121 · Example auction Sat, 24 Oct, 12:00 pm
2 bed2 bath1 carTownhouse
BidAI example estimate$1,150,000–$1,240,000
MELBOURNE · VIC AUCTION GUIDE
Buying at auction in Melbourne
Auctions are the most common way houses change hands in inner and middle-ring Melbourne, and most of them happen on a Saturday. That leaves you only a few weeks between the first open inspection and the moment the auctioneer asks for an opening bid. BidAI helps you use those weeks to decide on a firm price ceiling, so the bidding doesn’t decide it for you.
Start with the Statement of Information
In Victoria, a property for sale must come with a Statement of Information. It sets out an indicative selling price (a single figure or a range of no more than 10%), three comparable sales and the suburb median. Treat it as a starting point, not a valuation. Check the comparable sales yourself: how close they are, how recently they sold, and how similar they are in land size and condition. If recent results nearby are well above the indicative price, take that into account when you set your ceiling.
No cooling-off period at auction
If you buy at auction in Victoria, or in the three business days before or after it, the usual cooling-off period doesn’t apply. Finance, building and pest inspections and your solicitor’s or conveyancer’s review of the contract and Section 32 vendor statement all have to happen before auction day. The deposit, often 10% of the price, is usually due when you sign straight after the hammer falls.
How the bidding works
The auctioneer reads out the rules before bidding starts. Listen for how vendor bids will be identified. A vendor bid is made by the auctioneer on the seller’s behalf, and in Victoria it has to be announced as one. Until the property is declared “on the market”, the reserve hasn’t been reached. If bidding stops below the reserve, the highest bidder usually gets the first chance to negotiate with the seller.
Set your walk-away number before you go
Your walk-away number is the lower of two figures. The property ceiling is what the evidence says the home is worth to you. The finance ceiling is what your pre-approval, deposit and savings can cover after stamp duty, legal costs, any immediate repairs and a buffer you want to keep. Decide on it at home, write it down, and stick to it when you’re standing in the crowd.
Example Melbourne auction cards
Example listings. These cards illustrate how BidAI presents an auction: an estimated range, comparable sales and the auction date. They are not real properties for sale, and the photos are stock images.
EXAMPLE
Example house in Brunswick
Brunswick, VIC 3056 · Example auction Sat, 31 Oct, 2:00 pm
3 bed1 bath1 carHouse
BidAI example estimate$1,220,000–$1,320,000
Working out a walk-away price: an illustration
These figures are made up to show the method, not a forecast for any Melbourne suburb. Say comparable sales point to a property ceiling of $1,050,000 for the home you want. Separately, your pre-approved loan plus the deposit you can put in comes to $1,120,000. From that you take stamp (transfer) duty, legal and conveyancing costs, the repairs you know you’ll need and the buffer you want to keep in the bank. Suppose those come to $90,000, leaving a finance ceiling of $1,030,000. Your walk-away price is the lower figure, $1,030,000, even though the evidence says the home could be worth more. Put your own numbers into the walk-away price calculator, which works out VIC stamp duty for you; see VIC stamp duty explained.
Sticking to your walk-away price on the day
Decide in advance who bids and agree that the number is final. Bid in clear, confident amounts, and if the auctioneer asks for a rise you didn’t plan, you can offer a smaller one. Keep the running total in your head against your walk-away price, not against what the last bidder offered. If the property passes in below the reserve, the highest bidder usually gets the first chance to negotiate, and your walk-away price still applies in that room. If bidding passes your number, stop and move on to the next property on your watchlist.
A simple auction-week checklist
- Confirm your loan pre-approval is current and covers this property type.
- Get the contract reviewed by a solicitor or conveyancer.
- Order building and pest inspections, and check strata records if relevant.
- Gather at least three recent comparable sales and adjust for differences.
- Work out stamp/transfer duty, legal costs and any immediate repairs.
- Set your walk-away number and decide who will bid.
Frequently asked questions
Is there a cooling-off period if I buy at auction in Melbourne?
No. In Victoria, cooling-off rights don’t apply to properties bought at auction, or within three business days before or after a publicly advertised auction. Get finance approval, inspections and contract advice done before you bid.
What is a Statement of Information?
A document Victorian agents must provide that shows an indicative selling price, three comparable sales and the suburb median. It helps you test whether the price expectation is realistic, but it isn’t a valuation.
How do I work out how much to bid?
Set a walk-away number: the lower of your evidence-based property ceiling and your finance ceiling after costs and a safety buffer. BidAI’s calculator helps you do this before auction day.
Where can I check the official rules?
Consumer Affairs Victoria publishes guidance on buying at auction, underquoting and the Statement of Information. Rules can change, so check the current guidance and get independent legal advice.
General information only, current as of October 2026. Auction rules are set by each state and can change. Check Consumer Affairs Victoria and get independent legal and financial advice for your situation.
Work out your walk-away number
Use the free walk-away price calculator to see the most you can bid once stamp duty and buying costs are covered.