Read Time: 4 minutes
Many first home buyers misunderstand auctions. They think they can bid, win, and then figure out financing or conditions afterward. But auctions are unconditional. There’s no backing out. If you bid and win, you buy—no exceptions.
Going into an auction unprepared can be financially disastrous. If you win but can't complete the purchase, you risk losing your deposit and potentially facing legal action. On the flip side, if you don’t participate because you're unprepared, you might miss out on your dream home.
Many buyers assume they can place an auction bid and sort the details later. Others think a winning bid means they can negotiate conditions afterward. Neither is true. Unlike a standard house purchase with conditions like finance, due diligence, or building inspections, auctions are a done deal the moment the hammer falls.
I explain it like a poker game.
But just like in poker, getting to the table requires preparation. You can’t just sit down and start throwing money around.
Before you step into the auction room, you must pay the following approx. costs and have completed the following tasks:
Altogether, this preparation can cost around $2,000 just to get a seat at the auction table. It’s an upfront investment to ensure you're ready to play with confidence.
Once at the table, you can bid knowing you’re financially prepared to follow through if you win.
Thinking about bidding at an auction? Make sure you're playing the game the right way.
