Buying at auction in Sydney

Register before you bid

In New South Wales, you have to register with the selling agent before you can bid, either in person or through someone acting for you. Bring photo ID. If you’re bidding for someone else, you need written authority. Registration usually happens on the day, but check with the agent beforehand, especially for online auctions.

No cooling-off, so do the work early

A property bought at auction in NSW has no cooling-off period. Have your conveyancer or solicitor review the contract for sale before auction day, arrange building and pest reports, and make sure your loan pre-approval is current and covers the property type. The deposit, commonly 10%, is generally paid when contracts are exchanged after the auction. Some sellers will agree to a smaller deposit if you ask before the auction.

Read price guides with care

A NSW agent’s price guide must be reasonable and based on the seller’s instructions and comparable sales, and it has to be updated if the agent’s estimate changes. It’s still only a guide. Look at recent nearby sales of similar homes, how long they took to sell, and whether they sold before auction. Then form your own view.

Your walk-away number

BidAI compares a property ceiling, based on the evidence for that home, with a finance ceiling, based on your pre-approval and deposit minus stamp duty, legal costs, repairs and your buffer. The lower of the two is your walk-away number. If bidding goes past it, you let that property go and move on to the next one.

Example Sydney 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.

Working out a walk-away price: an illustration

These figures are made up to show the method, not a forecast for any Sydney 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 NSW stamp duty for you; see NSW stamp duty explained.

Work out your NSW walk-away price

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