In this instalment of our Homebuyers Guide, we’re diving into how to win at auctions without overpaying—so you can come out confident, not cash-strapped.
Know your numbers—and stick to them
Before you fall in love with a home, talk to your mortgage broker (that’s us!) about what you can comfortably afford. Your pre-approval amount might tell you what the bank’s willing to lend—but it doesn’t necessarily reflect what fits your lifestyle and long-term plans.
Do your homework before auction day
Preparation is your biggest advantage. Always get a building and pest inspection, have your solicitor or conveyancer review the contract, and study recent comparable sales in the area. Knowing the real market value keeps you grounded when bidding gets emotional.
Get pre-approval early
Securing pre-approval well before auction day does more than show sellers you’re serious—it gives you clarity. It means you can bid confidently, knowing exactly where your ceiling sits.
Keep emotions in check
Auctions are part theatre, part strategy—and it’s easy to get swept up. The fast pace, the competition, the adrenaline… all of it can cloud judgement. But remember: winning doesn’t always mean paying more—it means buying smart.
Understand the fine print
Before you raise your hand, make sure you understand the rules. In most states, auctions are unconditional—once the hammer falls, you’re legally bound to buy. That means:
- You’ll need your finance and deposit ready.
- There’s no cooling-off period.
- Any contract changes (like settlement length) must be negotiated before the auction.
Bid smart, not scared
On the day, arrive early, read the room, and position yourself where you can see and be seen. Bid clearly, confidently, and with purpose. Sometimes, just projecting confidence can make others hesitate. But confidence isn’t recklessness—it’s preparation meeting composure.
If the price climbs past your comfort zone, pause. Take a breath. Remember Ellie and Matt? They didn’t win that auction—but they did win the long game.
Final thought
Winning at auction isn’t about who bids fastest or loudest—it’s about who’s best prepared. Know your budget, understand the property, and keep your emotions steady. Whether you walk away with the keys or walk away knowing you stayed smart, that’s a win in our book.
Ready to bid smart?
Before your next auction, book a free chat with the Dream Catchers Lending team. We’ll help you understand your true borrowing power, guide you through pre-approval, and get you ready to buy with confidence this spring.