Article

How to Bid at a Melbourne Property Auction Like a Pro.

6 January 2026 Read time: 7 min

Author Annie Lewis

Expert Reviewer Alisdair Jackson, MFAA

If you’re buying property in Melbourne, chances are you’ll face an auction at some point — and for many buyers, that can feel intimidating. Understanding how to bid at a Melbourne property auction can make the difference between staying calm and confident, or getting swept up in the emotion of the moment.

But with the right preparation, clear limits, and a smart bidding strategy, property auctions don’t have to be daunting — they can actually work in your favour. So read on for how to bid like a pro at a property auction, including:

How to bid at a Melbourne property auction: Before auction day.

Success at auction is mostly decided before the auctioneer even starts speaking.

Do your due diligence early.

In Melbourne, auctions are unconditional — meaning there’s no cooling-off, no finance clauses, no building inspections after the fact.

Before auction day, you should have:

Reviewed the contract of sale with a conveyancer or solicitor
Understood the Section 32
Completed building and pest inspections
Confirmed you’ve received pre-approval for finance

If any of these are still outstanding, you’re not quite ready to bid.

Set a firm, informed limit.

Your maximum bid should be based on:

Comparable recent sales in the suburb
Current market conditions
What you expect the property is actually worth — get a free property valuation report for any property you’re interested in here
Your long-term cash flow and lifestyle comfort — make sure you’ve done a detailed household budget and understand what you can actually afford, not just what a lender allows you to borrow
Your readiness to make a 10% deposit on auction day.

Once you’ve set a number, write it down and commit to it. This isn’t about what you can pay — it’s about what still feels comfortable after the auction adrenaline fades.

Understand the local auction style.

Across Melbourne there are a range of ways to buy property — auctions, expressions of interest, private sales and off-market opportunities. Each method has its own rhythm, risks, and advantages, and agents will typically recommend a sales method based on the suburb, current market conditions and the property itself.

Still, there’s no denying it… Melburnians — particularly in inner and inner-eastern suburbs — love a good old-fashioned, on-the-street, in-front-of-the-neighbours property auction.

Melbourne auctions often move quickly, with strong opening bids and rapid increments. Some agents encourage big jumps to establish momentum; others try to draw out competition slowly. Understanding these dynamics helps you avoid being caught off guard on the day.

So before bidding, attend a few auctions as an observer. Watch how bidding unfolds in the areas you’re targeting, and if possible, attend one or two auctions run by the same auctioneer selling your desired property — knowing their style and pacing can make a real difference.

How to bid at a Melbourne property auction: On auction day.

Auction day is about execution — staying composed while others may not.

Understand the auction process.

Before the auction starts, there’s usually a brief open for inspection and a chance to review the auction conditions at the property. The auctioneer will outline the rules, explain how bidding increments work, and signal when the auction begins — often with a bell or a call to gather everyone together.

Auctioneers will typically call for or make a suggested opening bid. And then it’s up to the crowd.

Bidders raise their hands, nod or signal to the auctioneer to accept an amount requested. Alternatively, you can call out your desired bid.

During the auction, the auctioneer may pause to “seek instructions” from the seller and review the progress of bidding.

If bids reach or approach the reserve (the seller’s minimum), the property may be declared “on the market,” and bidding continues with buyers knowing the highest bidder will get the property. If the reserve isn’t met, the property can be withdrawn or passed in (explained further below).

The sale is legally binding once both buyer and seller sign the contract.

Position yourself strategically.

Stand where the auctioneer can clearly see you, but not right in the centre of the crowd. You want to appear confident and deliberate, not reactive.

Bid with purpose, not aggression.

Confident bidding doesn’t mean aggressive bidding. It means being clear, deliberate and unshaken by what’s happening around you. The strongest bidders aren’t always the loudest or fastest — they’re the ones who know exactly why they’re bidding and when they’ll stop.

Clear, decisive bids signal confidence. Avoid hesitant gestures, whispered bids through a partner, or letting the auctioneer fill the silence for you.

Watch the auctioneer, not the crowd.

The auctioneer controls the pace and calls the bids. Focus on them, listen closely to what’s being said, and don’t be distracted by other buyers’ behaviour.

Know what happens if the property passes in.

If bidding doesn’t reach the reserve, the property is “passed in.” But this is not the end. Being passed in can actually be an opportunity: you have clear insight into the reserve and can negotiate without the pressure of live auction competition.

The highest bidder at the time of passing in is usually granted first right to negotiate with the seller. You can discuss price, settlement terms, and any other conditions, but always stay within your budget. If negotiations stall or the seller’s reserve is above your limit, be prepared to walk away.

How to bid at a Melbourne property auction: After auction day.

Life after the hammer: what most auction guides miss.

Auction pressure can push even disciplined buyers to stretch “just a little”. The problem is that auctions don’t end when the hammer falls — that’s when the financial reality begins.

Buyers who feel confident on the day can later find themselves dealing with:

Tighter cash flow than expected
Reduced flexibility if interest rates rise or circumstances change
Ongoing stress around everyday spending that didn’t factor into the bid

That’s why your maximum bid should be grounded in real cash-flow planning, not just comparable sales or lender calculators. When your numbers are solid, bidding becomes calmer — because you already know where the line is.

This is where preparation pays off long after auction day.

Buying well matters more than “winning” the auction.

It’s easy to talk about “winning” at auction — but the highest bid doesn’t always equal the best outcome.

A good purchase is one that still feels comfortable months and years later. One where repayments fit your life, not just your borrowing capacity. One that leaves room for interest rate changes, family plans, renovations, travel, or simply breathing space in your budget.

Understanding how to bid at a Melbourne property auction isn’t just about tactics on the day — it’s about making a decision you won’t regret once the adrenaline fades and real life resumes.

Walking away at the right moment isn’t a failure. Often, it’s the smartest move you can make.

Types of bids at property auctions.

Buyer bids.

These are the most common and straightforward.

These are bids made by registered bidders who are genuinely interested in purchasing the property.

Each bid must meet or exceed the current bid plus the auctioneer’s increment.

Vendor bids.

A vendor bid is a bid made by the auctioneer on behalf of the seller. It’s not a real buyer bid — it’s just used to keep momentum going and indicate that the seller isn’t happy with the previous bid.

Key points to remember:

Vendor bids are legal and disclosed by the auctioneer.
They must be clearly disclosed to the crowd.
They do not count as a competing buyer offer, and buyers are not obligated to treat it as such.

So treat vendor bids as part of the process, but don’t let them push you past your maximum bid.

Phone or absentee bids.

Sometimes, buyers who can’t attend the auction will submit bids in advance via phone or online.

The auctioneer executes these bids as if the buyer were present.
These bids count as real buyer bids — unlike vendor bids — and are subject to the same rules.

Common mistakes Melbourne property buyers make at auctions.

Even experienced buyers can slip up. The most common pitfalls include:

Bidding emotionally instead of strategically
Letting “just one more bid” creep past their limit
Forgetting to factor in stamp duty and buying costs
Confusing fast bidding with strong competition

Bidding like a pro at a property auction is as much about discipline as it is about tactics.

Should you bid yourself or work with a professional?

Some buyers choose to engage a professional bidder or buyer’s advocate, particularly in highly competitive Melbourne suburbs. This can help remove emotion and provide experienced negotiation skills — but it’s not essential for everyone.

What matters most is that whoever is bidding is clear on the strategy, your limit, and the reasons behind it.

Bidding confidently at auction: final thoughts.

Auctions are a defining feature of the Melbourne property market — and they reward preparation, clarity and confidence. When you truly understand how to bid at a Melbourne property auction, you give yourself the best possible chance of buying well, not just buying fast.

Remember: the goal isn’t to “win” at any cost — it’s to make a purchase that fits your life, your finances, and your long-term goals. Auctions reward clarity over courage, planning over panic. When you bid with knowledge and purpose, you’re not just participating in a property sale — you’re making a smart, informed investment in your future.

If you’re planning to buy property in Melbourne, start your preparation early. Seek advice from a trusted mortgage broker, sort your budget and know your numbers, and then raise your hand with confidence at your next auction.