Buying guide · 4 min read · Checked 21 October 2026

Buying at Auction in Victoria: How It Works and How to Prepare

In short

Since 16 October 2026 you can see the seller’s reserve at least a week before a Victorian auction, so check it against your budget before you spend on inspections. Do your homework before the day: finance approval, a building inspection and your conveyancer’s review of the contract and Section 32. If you win, you sign an unconditional contract on the spot, with no cooling-off, and usually pay a 10% deposit.

What you can see before the auction

The Property Price Statement: the agent’s indicative price, the three most comparable recent sales, the suburb median and more detail about the home.
The reserve: for auctions from 16 October 2026, the seller’s reserve must be published as a single dollar figure, with no “from”, “over” or “+”, at least seven days before. If it is not, the auction cannot go ahead.
Recent sold prices: agents must now publish the price within seven days of a sale and keep it up for 18 months, which makes your own comparable-sales research easier.
The contract and Section 32: ask for them early. From 1 June 2027 they must be available at least 14 days before the auction.

Get ready before auction day

Finance: get your lender to confirm the loan for this property, not just a general pre-approval, because your bid cannot be subject to finance.
Inspections: a building and pest inspection in Melbourne typically costs about $450 to $950. Do it before the auction, because you cannot add it as a condition afterwards.
Legal review: have your conveyancer or solicitor check the contract and Section 32, including the settlement date and any special conditions.
Deposit: usually 10% of the price, paid when you sign. If you need a smaller deposit or a different settlement date, ask before the auction; the seller may or may not agree.
Your limit: decide your walk-away price in advance, including stamp duty and other buying costs, and write it down.

On the day

The auction rules must be on display for at least 30 minutes before bidding starts, and there is often a final inspection beforehand. Bidders can be asked to identify themselves. Only the auctioneer can make a bid on the seller’s behalf, called a vendor bid, and it must be announced as one. Dummy bids from the crowd are illegal.

Bid clearly and keep to your limit. The published reserve tells you the figure at which the home will be sold, so you can judge how far above it you are prepared to go.

If you win

You sign the contract on display straight after the auction. It is unconditional: there is no cooling-off period, and you cannot add conditions such as finance unless the seller agrees. The deposit is held in trust by the agent, a conveyancer or a solicitor until settlement.

If it passes in

If bidding does not reach the reserve, the home passes in. The highest bidder usually gets the first chance to negotiate with the seller. If that does not lead to a sale, the agent may talk to other bidders and the home moves to a private sale. If it passed in on a vendor bid, later advertising that quotes the last bid must say so.

Melbourne’s final clearance rate was 50.4% in the week ending 4 October 2026, according to Cotality, so about half of homes taken to auction were not sold on the day. Being the highest genuine bidder on a passed-in home can be a strong position.

Buying before the auction

You can make an offer before auction day, and some sellers accept a strong one. A contract signed in the three clear business days before an auction has no cooling-off period, the same as at the auction itself. Earlier than that, a private-sale contract normally has a three business day cooling-off period.

Questions

What people ask us

Is there a cooling-off period if I buy at auction?

No. There is no cooling-off at auction, or for contracts signed in the three clear business days before or after an auction.

Can I make my auction bid subject to finance or a building inspection?

No. Auction contracts are unconditional unless the seller agrees otherwise before the auction, so arrange finance and inspections beforehand.

How much deposit do I pay at auction?

Usually 10% of the price, paid when you sign. There is no law setting the amount, so ask before the auction if you need less.

Can I see the reserve price before the auction?

Yes, for auctions from 16 October 2026. The reserve must be published as a single figure at least seven days before the auction.

What is a vendor bid?

A bid the auctioneer makes on the seller’s behalf, usually to start or move the bidding below the reserve. It must be allowed in the displayed rules and announced as a vendor bid.

Sources

Written by Luke Fornieri, licensed estate agent, Fornieri & Azar, East and South East Melbourne. Checked 21 October 2026. General information only, not legal, tax or financial advice. Grants, duty and rules change, so check the sources or ask us about your situation.