Step 5 of 6
Making an offer and bidding at auction
Private treaty tactics, auction day, the pressure lines you will hear, and how to set a walk-away number you will actually hold.
11 min read · Written for Australian first home buyers
This is the step where the money is actually made or lost. Everything before it was preparation. The person on the other side does this every week and you have done it never.
Set your walk-away number first
Before you talk price with anybody, write down two numbers: what you think the property is worth from your comparable sales, and the absolute figure past which you will stop. The second one is your walk-away number.
Write it down somewhere you will see it on the day. A number you hold in your head at an auction is not a number, it is a mood.
Private treaty: how offers actually work
- 1Get the contract reviewed before you offer
Your conveyancer or solicitor reads it, and any special conditions get negotiated while you still have leverage. After you sign, your leverage is gone.
- 2Put the offer in writing with conditions attached
Price, settlement period, deposit amount, and any conditions such as subject to finance or subject to building and pest. Terms are negotiable, not just price.
- 3Set your own deadline
An offer that stands until a date you chose is much stronger than one that hangs open indefinitely while the agent shops it.
- 4Expect the counter, and decide in advance
Agree with yourself beforehand what you will do at each likely counter. Decisions made in advance are better than decisions made in a hallway.
Terms that are worth real money
- A longer or shorter settlement, whichever suits the vendor, often buys price
- A larger deposit signals certainty without changing the price you pay
- Subject to finance protects you if the lender's valuation comes in low
- Subject to building and pest lets you renegotiate on evidence
- Inclusions listed explicitly: appliances, blinds, air conditioning, remotes
The pressure lines, and what they mean
These are standard. They are not personal, and hearing them does not mean you are losing.
| What you hear | What it usually means | A calm reply |
|---|---|---|
| "We have another interested buyer." | Unverifiable, and true often enough to be worth saying | "Understood. Our offer stands until Friday." |
| "The vendor wants a decision today." | A deadline set by the seller, to stop you thinking | "I'll have an answer once my conveyancer has read the contract." |
| "You'll need to be at $X to be in the game." | Testing whether your ceiling is higher than you said | "That's above what the comparable sales support." |
| "What's your absolute maximum?" | The single most valuable question they can ask you | "My offer is what I'm prepared to pay." |
Auction day
Auctions are designed to create urgency in a public setting. The rules that matter most are the ones about what happens if you win.
- Register to bid, and have identification with you
- Have the contract reviewed and any changes agreed beforehand
- Have building, pest and strata reports done beforehand
- Have pre-approval, and know your lender's likely valuation view
- Have your deposit ready to transfer on the day
- Write your walk-away number on your hand if that is what it takes
Tactics that are legal and work
- Bid late and in odd increments. Entering at $1,000 increments when others are moving in $10,000 slows the room.
- Bid confidently and without hesitation. Slow bidding invites the auctioneer to push you.
- Know the reserve is not public. Bidding may pause while the auctioneer refers to the vendor. That is normal.
- Be ready if it passes in. The highest bidder usually gets first negotiation rights. That is a genuinely strong position.
Cooling-off periods by state
| State | Cooling-off (private treaty) | Penalty to withdraw |
|---|---|---|
| New South Wales | 5 business days | 0.25% of the price |
| Queensland | 5 business days | 0.25% of the price |
| Victoria | 3 clear business days | $100 or 0.2%, whichever is greater |
| South Australia | 2 business days | Deposit generally refundable |
| Western Australia | None by statute | Negotiate a clause into the contract |
Current as at August 2026, and there are exceptions in every state. Auction purchases have no cooling-off period anywhere. Confirm with your conveyancer for your contract.
Common questions
Is there a cooling-off period if I buy at auction?
No. In every Australian state, buying at auction means the contract is binding on the fall of the hammer with no cooling-off period. Everything you want checked has to be checked before you bid.
How long is the cooling-off period in my state?
New South Wales is five business days with a 0.25% penalty if you withdraw. Queensland is five business days. Victoria is three clear business days with a penalty of $100 or 0.2% of the price, whichever is greater. South Australia is two business days. Western Australia has no statutory cooling-off period at all.
Should I make my best offer first?
Rarely. An opening offer sets the frame for the negotiation, so it should be defensible from your comparable sales rather than simply low. Your best number is the one you have decided you will not go past, and the agent should not learn it.
What does 'passed in' mean at auction?
The property did not reach the reserve, so it was not sold. The highest bidder usually gets the first right to negotiate with the vendor immediately afterwards, which can be a good position to be in.
Where these figures come from
- Unloan - cooling-off periods by state in Australia
- NSW Government - underquoting and agent conduct reforms
Grants, thresholds and duty rates change. Always check the current rules with the relevant state revenue office or Housing Australia before you rely on a number here.
Do not negotiate alone
TrueBuy prices the property, reads the contract and drafts your replies for $399 per property. You make every decision.
Information, not legal advice. Confirm with your conveyancer before acting.