Winning at auction is one of the most exciting — and nerve-wracking — moments in property buying. But once the hammer falls, the process moves quickly. Understanding exactly what happens next gives you confidence and helps you avoid costly mistakes.

Step-by-Step: What Happens When You Win at Auction

1. The Hammer Falls — You Are Immediately Under Contract

In Australia, when the auctioneer’s hammer falls and you are the highest bidder above the vendor’s reserve, you are immediately and unconditionally under contract. There is no cooling-off period at auction. This is the most important thing to understand before you bid.

2. You Sign the Contract of Sale on the Spot

The vendor’s real estate agent will present you with the Contract of Sale immediately after the auction. You are required to sign it at the auction. Both you and the vendor (or their authorised representative) sign the same contract, making the sale legally binding.

3. You Pay a 10% Deposit

You are required to pay a deposit — typically 10% of the purchase price — immediately after signing the contract. In Victoria and most Australian states, this is the standard auction deposit. Some vendors will negotiate a lower deposit (5%) but this must be agreed before the auction in the Section 32 / Vendor Statement. The deposit is held in trust until settlement.

4. Settlement Period Begins

The contract will specify a settlement date — typically 30, 60 or 90 days after auction day, as set out in the contract. During this period, your conveyancer or solicitor handles the legal transfer, your lender processes the mortgage, and both parties prepare for settlement.

5. Settlement Day

On settlement day, your lender transfers the balance of the purchase price to the vendor. You receive the keys. The property is legally yours.

What If the Property Is Passed In?

If the bidding does not reach the vendor’s reserve price, the property is passed in. The highest bidder — even if below reserve — has the right to negotiate with the vendor first before any other party. This is a significant advantage, and knowing how to negotiate effectively in this situation can mean the difference between securing the property and missing out.

Common Auction Mistakes

• Bidding without pre-approved finance — you cannot bid subject to finance at auction
• Not reading the Contract of Sale and Section 32 before auction day
• Not having your deposit funds accessible on auction day
• Bidding without understanding the comparable sales range and your maximum price
• Not having a bidding strategy — when to bid, how much to increase, when to stop

How Collings Property Advisory Helps Auction Buyers

Collings Property Advisory gives you everything you need to bid at auction with confidence — for a fixed fee of $4,500 + GST.

• Independent property assessment and comparable sales analysis
• Market value assessment — what the property is really worth
• Bidding strategy — when to enter, how much to increase, your maximum
• Pre-auction negotiation strategy (many properties sell before auction)
• Contract review guidance (in conjunction with your conveyancer)

Frequently Asked Questions

Do I need to pay the full 10% deposit on auction day?

Yes, in most cases. You need to have your deposit funds — either by bank cheque, electronic transfer or personal cheque depending on the agent — available on auction day. If you cannot pay the deposit immediately after winning, you may be in breach of contract.

Can I withdraw after winning at auction?

No. In Australia, winning at auction creates an unconditional and immediately binding contract. There is no cooling-off period. If you withdraw, you forfeit your deposit and the vendor may pursue you for additional losses.

What if the property doesn’t reach the reserve?

If the highest bid is below reserve, the property is passed in. You have the first right to negotiate. This is where having a clear negotiation strategy — and ideally independent advisory support — makes a real difference.

Can I get building and pest inspection done before auction?

Yes, and you should. Because there is no cooling-off period and no finance or building inspection conditions at auction, all due diligence must be completed before you bid. Collings Property Advisory can help you interpret building inspection reports and factor findings into your bidding strategy.

Why Collings?

Collings has supported buyers through hundreds of Melbourne auction campaigns. Our GeeVee platform analyses comparable sales, vendor motivation signals and market conditions to give you an independent view of value before you bid. Our fixed-fee advisory service means you get professional auction support without paying $15,000-$30,000 in buyers advocate fees.

Get Started — $4,500 + GST Fixed Fee

Whether you’re preparing for an auction or have already won and need guidance on what comes next, Collings Property Advisory is here to help. Contact us today or explore our off-market property portal at collings.com.au/portal.