Auction-day due diligence: the buyer's checklist
Before you bid, have the contract and disclosure reviewed, put any agreed changes in writing and understand the building report, including the areas it could not cover. Ask your lender or broker how valuation, property type and the final price affect approval. Check how the deposit must be paid and write down a hard limit that already includes the immediate work and buying costs.
- 01ContractRead properly, with any agreed changes in writing
- 02BuildingThe report understood, and every flag chased down
- 03MoneyFinance for this property, the deposit ready, a limit you wrote down
Bid only when every gate is green.
Why an auction is different
When the hammer falls, you are generally bound, and there is usually no cooling-off to save you. So the contract, the finance and the physical checks all get finished first.
In Victoria, the auction cooling-off exclusion also covers purchases within three clear business days before or after the scheduled auction. Your state’s rules and your contract’s terms decide the rest. See cooling-off periods by state.
The checks to clear before you bid
- Contract & Section 32 reviewed by your conveyancer or solicitor, see how to read a Section 32.
- Building report understood, including the important findings, blind spots and any limits on your right to rely on it.
- Property-specific finance readiness, lender conditions, valuation risk, funds to complete and buffer understood.
- Deposit mechanics confirmed, the amount is set by the contract, with payment timing and method checked with the agent.
- Your maximum price set in writing, with a plan to stop there, whatever the room does.
Contract and Section 32
Have a conveyancer or solicitor review the vendor statement and contract early. Ask about title, settlement, deposit, inclusions, adjustments, default terms and special conditions. If the seller agrees to a change, have it recorded in the contract before you bid. Tell your legal adviser about any representation that affects your decision.
Building and pest, done in advance
Understand the building before you bid. Check a vendor report's date, scope, access, inspector, insurance and buyer-reliance terms. Commission your own work if those details leave important gaps.
Property-specific finance readiness
A pre-approval is usually conditional on valuation, final checks and an acceptable property. Give the lender or broker the property type, address, contract and intended price range. Confirm outstanding conditions, valuation-shortfall funding and the cash needed for deposit, duty, costs and settlement. Set a conservative limit and contingency.
Deposit and your limit
The contract sets the deposit amount and due time. Confirm the agent's payment method and daily transfer limits, then record any negotiated change before bidding. Include acquisition costs, immediate work and a finance buffer in the maximum price.
What happens if you win and can't settle
If you win and then cannot settle, the deposit is at risk and the seller’s losses, including any shortfall on a resale, can follow you home. That is the whole reason the gates come before the bidding.
Frequently asked questions
Can I make an auction purchase subject to finance or inspection?
A seller may agree to contract changes before the auction. Have each requested change negotiated and documented by the legal representatives before bidding.
Is there a cooling-off period if I buy at auction?
Cooling-off is generally unavailable for auction purchases. In Victoria, the exclusion also covers purchases within three clear business days before or after the scheduled auction.
Do I need a building inspection before auction?
If condition could change your decision or maximum bid, obtain an appropriately scoped inspection early enough to assess its findings and blind spots. Test any vendor report's date, access, commissioning party and purchaser-reliance terms.
Is pre-approval enough to bid at auction?
Not by itself. Ask the lender what conditions remain, whether this property is acceptable to them, what happens if the valuation comes in short, and whether you hold the funds and buffer to complete at your intended price.
What happens if I win and then can't settle?
You risk forfeiting the deposit and may be liable for the seller's losses, including a resale shortfall.
How much deposit do I need at auction?
The contract sets the amount. Check the due time and payment method, and document any agreed change before bidding.
How this guide was researched
A checklist built from the official contract, auction and inspection guidance, arranged as gates: things you finish before you let yourself bid.
Limits: General Australian guidance only. Contracts, statutes, policies, site conditions and professional scopes vary; obtain advice for the property and decision in front of you.
Sources
- Buying and selling property by auctionConsumer Affairs Victoria · accessed 2026-07-19
- Contracts and deposits when buying property in NSWNSW Government · accessed 2026-07-19
- Inspection reports before buying propertyNSW Government · accessed 2026-07-19
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