The 7 Most Common Mistakes Purchasers Make on Auction Day
/Auction day in Victoria is high-stakes and fast-moving. For many purchasers, it is also emotionally charged and unfamiliar. One wrong move can cost you thousands—or the property altogether.
David Dawn, Licensed Conveyancer at Victorian Property Settlements, shares the most common mistakes he sees buyers make at auctions, and how you can avoid them.
1. Bidding Without Reviewing the Contract
It is surprisingly common for people to bid at auction without having read the contract of sale. Some assume the terms will be “standard” or can be changed later. They are wrong.
Once the hammer falls, you are legally bound—warts and all.
Tip: Have the contract and Section 32 reviewed by your conveyancer before auction day. We often find unfair special conditions, undisclosed works, or missing planning details that can be negotiated before signing.
2. Thinking You Can Change the Terms After the Auction
You cannot. Once the auction ends and you are the successful bidder, you must sign the contract on the spot, with no changes allowed—not even to your name.
Tip: If you plan to purchase in a company name or via SMSF trustee, make sure the auction contract allows it and that your name and structure are finalised beforehand.
3. Not Understanding What You’re Actually Buying
Auction properties are sold as is. There is no building inspection condition. There are no guarantees about included items unless they are clearly listed in writing.
Tip: Do your inspections before the auction. Confirm what is and is not included (dishwasher? curtains?). Do not rely on verbal statements—get it in writing.
4. Failing to Confirm Your Finance Is Fully Approved
At auction, the contract is unconditional. There is no subject to finance clause. If your lender declines or delays after you win, you may lose your deposit and face legal action.
Tip: Have formal finance approval and know your borrowing limit. Ask your broker if your lender has any conditions that could delay settlement.
5. Forgetting About Deposit Requirements
You must usually pay a deposit (often 10%) immediately after the auction. If you do not have it ready, you risk default.
Tip: Bring a bank cheque or confirm whether electronic transfer is allowed. Better still, negotiate a reduced deposit or delayed payment before the auction in writing.
6. Not Checking the Settlement Date
Many people only check the price—but ignore the dates. You may be committing to settle in just 30 or 45 days, and if your finance, sale, or circumstances do not line up, you may breach the contract.
Tip: If you need more time to settle, request an amendment to the settlement period before auction day. The agent can ask the vendor to approve it in writing.
7. Assuming You Can Pull Out After Winning
There is no cooling-off period when you buy at auction in Victoria. Once you sign, you are locked in. If you change your mind—even minutes later—you can be sued for the full deposit or even damages.
Tip: Only bid if you are 100% ready, reviewed the contract, and understand your obligations. Treat auction day as binding.
Conclusion
Auction day is not the time to “wing it”. The risks are real, and so are the consequences. Professional review and preparation are the best tools you have as a buyer in a competitive market.
At Victorian Property Settlements, we provide pre-auction contract reviews, tailored clauses (when allowed), and straight-talking advice to help you bid with confidence—or walk away wisely.