Top 9 Auctions Winning Tips in Melbourne — 2025 Strategy, Bidding & Deposits
- Rayson L.
- Sep 2
- 14 min read
Updated: 3 days ago
To win a property auction in Melbourne: get finance ready, complete contract/building checks, set your price limits, and control with confident, clear bids. There’s no cooling-off at auctions in Victoria, so be 100% prepared. If property passes-in, be prepared and ready to negotiate against a team of senior agents.
If bids exceed your budget, be prepared to walk away immediately, to avoid emotional overpaying. Yes, leave the auction. Do not fall into the trap of "wanting to know where the auction will end". Most bidders got sucked back into the auction to bid more, effectively over-extending their budget.
Some bidders believe body language is important, but from experience, that is just a beginners way of staying relevant. Body language does not matter, as our buyers advocates will explain why. We will share their auction winning strategy, expose some auction myths, reveal the latest tricks bidders and agents use at auction campaigns and during auctions and how to counter them.
In the Melbourne property market, it is common to see properties being listed for "Auction". Some say it is a "Melbourne thing". With almost every good property listed for "Auction", Melbourne buyers have no choice but to be prepared to bid at these property auctions. So, it begs these questions..
What do you need to know at auctions?
How do you bid at auctions?
What do you need to prepare before and during auctions?
What strategies should you use at auctions?
How do you win at the property auction?
Based in Melbourne, our buyers advocates attend and bid at over a hundred auctions every year for our buyer clients. On a busy weekend, each agent could be bidding at between 3 to 5 auctions a day. We've seen and studied different strategies being used, all types of games and distractions, tactics used by bidders, agents and auctioneers to spice up the emotions at auctions.
Auction techniques and tactics had evolved in recent years and we've seen some rather creative strategies used by the auctioneer, sales agents and bidders during auctions recently. So, we've released this new guide for 2025/2026, to help property buyers beat the competition and grab the property you want at auctions.
What is An Auction?
An auction is a public sale where a seller offers the property and prospective buyers compete by placing bids, with the highest bidder winning and securing the item at the fall of the auctioneer's hammer. Auctions are facilitated by licenced Auctioneers, and can occur in-person or online and are governed by specific rules and a set date and time. The seller sets a confidential reserve price, and the property is sold to the highest bidder once then bidding reaches the reserve price and the auction declared it "SOLD".
What Do You Need to Know About Auctions?
Auctions are emotionally charged, tension filled 20-30 mins that ultimately determines who buys the property. At times, the bids may be slow, with long delays between bids, while at times, the bidding can be fast, in large increments and with split seconds counter-biddings. The pace is usually facilitated by the Auctioneer, and a few strong buyers advocates and seasoned bidders at the auction.
It is important to know that, in almost all states in Australia, properties bought at auctions are unconditional. This is especially true in Melbourne and Victoria. There are no cooling off periods, and there is no walking away, if you win the auction. Bidders should also know it is illegal to disrupt an auction. Your bid at the auction, is legally binding. There is no backing out.
How to Win Property Auctions?
To win at auction, particularly in the competitive Melbourne property markets, requires a combination of preparation, strategic bidding, emotional control and skills. Key strategies include setting a firm budget, understanding the property's real value, and having a bidding strategy that maximises your chances of winning without overpaying.
In this article, we'll show you how to win the property at auctions. Good preparations are critical to winning the key to your dream house at the auction, and here's how you do it:
How Do You Prepare for Auctions? Step-by-Step Guide
Given the high stakes involved at auctions, how do you prepare for the auction? How should you prepare correctly for the auction, and to prevent yourself from some serious, unintended consequences? While some suggests that you need a lot more preparations, there are only 3 important steps you need to prepare:
1. Do Your Due Diligence
Doing your due diligence is critical to preventing yourself from buying a property that doesn't meet your needs.
Understand what you want from the property, why you want the property and your plans for the property. Our experienced buyers advocates will help buyers understand the local property market. This will help you understand what other buyers will pay for the property.
What due diligence do you need to do before the auction?
If you are a home buyer intending to live in the property, questions you need to ask yourself include:
Do you like the location?
Does it have the right amenities?
Does it have the right school, transportation, environment you want?
If you are an investor and intend to put the property on the rental market, find out:
What rent can the property fetch on the rental market?
What are the vacancy rates? How long will it take for you to find a tenant?
Is the property in the right location for the types of tenants you want?
Does the property meet the minimum rental standards in Victoria?
If you are a developer and intend to develop the property, ask yourself:
Will the site give you the returns you're looking for?
What types of properties do buyers want to buy in that location?
What is the best use of the land to give you the best returns?
Does it have the right zoning, overlays, council plans, features?
If you are loaded and just want that property, determine:
What price will knock out all other bidders?
Will the agent accept an 'irresistible offer' before the auction?
2. Know the Real Price of The Property
Most buyers wrongly believed the price guide in the Statement Of Information (SOI) provided by the sales agent. While the legal purpose of the SOI is to give buyers an indication of the price for the property, sales agents are increasingly using it as a marketing tool and the price range mentioned in it is usually very different from what bidders will bid at the auction.
How to price a property like a professional
This is the secret no agents want you to know. With experience and good research, this few steps should be relatively easy:
Understand what other buyers are willing to pay for the property.
Find out what other properties in the area are sold for.
If your research shows a very different price from the price guide (SOI), ask the agent why have they given a very different price in the guide. There could be a gold plated toilet in the house. Or a major termite infestation. Or a history of flood and/or water damage. But don't be surprised if the agent simply give you a standard, vague answers like "that's based on what our sales agent think. We cannot predict what buyers are prepared to pay at the auction"... That is just agent speak for... "do your own homework".. A dead give away that the guide are not to be trusted.
A good independent buyer's advocate who knows the area, location, and buyer demographics, etc, will be able to give you an accurate appraisal before you bid. If they cannot, you are no better than buying on your own. At Concierge Buyers Advocates, we combine our understanding of the area with our data analytics, to produce a Real Market Appraisal for all properties we shortlist. With the exception of a few outliers, we have been able to accurately estimate the selling price of the property.
If you need help, our guide to determining the value of a property will give you some ideas.
3. Know Your Budget
With the preparations done, setting your budget is the next critical homework you need to do. The above helps you understand what the property market say. This next step helps you set your budget.
Budget is critical. Always remember, buying at auction is unconditional. You CANNOT back out, if you win the auction. Make sure you:
Know how much you can afford to pay.
Know your serviceability.
Have sufficient funds for the 10% deposit.
Have the appropriate way to pay the required deposit on the day of auction.
Always be prepared. Always assume you will win the auction. Our auction bidding service helps you prepare and lets you know what others are likely to pay, and the fair price for the property. With these information, determine what the property is worth to you. Set yourself 2 limits.
Limit 1. The price you are willing to pay for the property.
Limit 2. The absolute maximum price you are willing to pay for the property. A good test to know if you've set the right Limit is asking yourself "if you lost the property by $100, will you regret walking away".
If these two numbers are less than what you believe other buyers are likely to pay at the auction, maybe this is the wrong property for you. You might not even need to turn up at the auction. You can save yourself some time and focus on the next property in your shortlist. Or you can still attend the auction. You might win it for a good price if there are no other bidders. In a hot sellers' market, this scenario is highly unlikely to happen though. We will tell you why later.
A Honest Word of Advice ..: Intentionally under-bidding, hoping to grab a bargain is just going to waste your own time, the agents' time and everyone else' time. You are reducing your own credibility and creating a bad impression amongst the agents and buyers in the area. Another reason why this won't work is this: All properties at auctions have a reserve price. This reserve price is set at what the vendor and sales agent think is fair price for the property. So, even in the unlikely scenario where you're the only bidder, you will still be expected to pay at least around the reserve price anyway.
4. Stick to your budget.
With the above preparations done, you are now ready for the auction. On the day of auction, arrive early. In Melbourne, the listing agent would usually have one final open for inspection just before the auction. Turn up, do one last inspection, check-in with the agent and confirm you will be bidding at the auction.
Then revisit your budget numbers. Review your target price, and your walk-away price. Only change them if new, material information emerges (eg, building issues resolved, or there are new damages or concerns. You have one last chance to review and revise, if you need to. Do not adjust for nerves or FOMO. You should not have the need to adjust the numbers if you have prepared sufficiently.
Experience tells us, solo/DIY bidders often change the budget at this very last minute, and regret it later. It is ok, if you need to change. But It is NOT ok if you change because you want to. If you want to change the limit at this very last minute, experience tells us, you will very likely walk away from the auction with regrets:
If you win the auction, you will be wondering if you have overpaid.
If you lost the auction, you will be blaming yourself for not spending that extra $100.
Stay disciplined to your price limits, or have a Melbourne Buyers Advocates shield you from the emotions and stress and bid for you.
Auction Day Bidding Tactics
Many have also ask what our preferred auction strategies or bidding styles are. Some common theories advocated by some buyers include:
Auction Dos and Don'ts
1. Be Confident (and Be Prepared)
Auctions are high-pressure. Even seasoned real estate agents would avoid auctions, if they can. Be prepared for the pressure and emotions during the auction. Practice, practice, practice and be comfortable. Bid with a clear, loud voice. If you're naturally soft-spoken, or you are not confident in public speaking, you can get an assisting sales agent to help you. Remember, the assisting agent is working FOR the vendor, AGAINST you, the buyer. Their role is to stir your emotions so you offer your last dollar. Some commonly used techniques include:
"Another $1000 will knock the other bidders out",
"Put in a $5000 knock-off bid. This should scare the other bidders."
"I know them. They are near their limit. Another $3000 will win it."
The auction bidding service at our Buyers Advocacy agency shield buyers from these emotions during the auctions and helps our clients win the auction confidently. We make our role known to the auctioneer and prefer assisting agents stay away som, we can follow our strategy, not the pressure.
2. Power Dressing
Some believed power dressing helps portray a sense of confidence. Having attended and bidded at hundreds of auctions, Louis Vuitton, Gucci, Lamborghini do nothing to help buyers win auctions. Ultimately, the amateur's body language always give themselves away. We've seen buyers winning auctions in shorts and sandals. If anything, being overdressed helps other bidders identify who the rookie is...
3. Body Language (and Poker Face)
Body language is by far more important than anything else. But relying solely on body language can and will mislead you too. Heard of "Poker Face"? A Poker Face can be trained. So can the "Nervous Face". We've seen "Poker Faces", or the "Aggressor Faces" lost at auctions. We will tell you why at the end of this guide.
Our buyers agents are trained to study the bidders and auctioneer and we adapt our bids, bidding strategy and body language to the situation.
4. Using Big Bid Increments
Some say big bid increments will scare the competition and let you create the sense of deep pockets. It is partially true. But this only work against amateur competitors. Only amateur bidders will think twice about beating your bid. Use this strategy with caution. Used at the wrong time, this bidding strategy will backfire badly. We've seen someone put in winning mega bid increment, knocking out all other bidders. Secretly, we believe he overpaid badly for the property.
5. Using Small Bid Increments
Small bid increments is another tactic used by most rookie bidders because they fear overpaying. It is also used by professional bidders to extend the auction. Used correctly, it can expose the stealth bidders, and also creates the impression of a bottomless budget, as the bidder seems to be able to find an extra $100 from thin air. It can be used to scare the amateur bidders.
What is the Latest Auction Tactic in 2025? Will it work?
Last Minute Sniper Bid
In recent years, we are seeing a growing number of bidders now staying silent through most of the auction and then jump in at the final call—just as the auctioneer reaches “first, second, third…”. The "sniper" bidder's goal is to disrupt momentum, and save "face" if they are priced out early. In a tight Melbourne market—where good homes draw crowds—this tactic lets you observe the room, and conserve energy, provided you are not priced out before you speak.
The Benefits of Placing Last Minute Auction Bids:
Your "feel good" factor. You keep your price secret, avoid being dragged into an early bidding war, and a well-timed, confident bid can rattle inexperienced bidders. That said, it’s not a safeguard against overpaying—professional bidders, such as buyers advocates, attend auctions prepared to win and won’t be spooked. They attend hundreds of auctions every year, and this is child's play. The real benefit of this tactic is face-saving. You lose without revealing you've failed to win the auction.
The Risks of Placing Last Minute Auction Bids:
Risk of mistiming is high. No one knows you are going to bid, and no one will prompt you. The hammer can fall before you speak, and if the property is passed in and you weren’t the highest active bidder, you will lose first right to negotiate. A skilled auctioneer build momentum, encourage competitive bidding, by changing bid increments, or pausing. So there really is no guarantee of a bargain. If you try this, always stand front and centre. Make yourself visible, bid loudly and clearly. And, as usual, do your due diligence beforehand.
Will Last Minute Bid Work:
No. As above, we had won in many auctions where sniper bids were used. While the last minute nature will surprise amatuer bidders, it does nothing to help them win the auction. When you encounter sniper bidders, stay calm. They are no different to any other bidders. They have their budget, and you have yours. Stay focus, stay calm and bid. They are just another bidder with "feel-good" tactics.
The Truth About Auctions: There is No One "Sure-Win" Strategy
After bidding at hundreds (if not thousands) of auctions in Melbourne, one thing is clear: Preparation Wins. Having seen and studied how bidders of all experience levels use their "auction strategies", we can sadly confirm there are no fool-proof or sure-win strategies.
As professional auction bidders, we read people. We analyse and profile each bidder, study their bids and we adopt our strategies or combination of strategies to counter them. We mix big increments with small increments, fake a nervous face, etc, to suit the auction.
Want calm, disciplined execution on the day of auction? Let our Melbourne Buyers Advocates set the ceiling, run the strategy, and bid for you—so you don’t overpay or walk away wondering “what if.”
Paying the Deposit at Auctions in Melbourne
So, you've won the auction. It is now time to pay the deposit. In Melbourne, the common methods to pay the deposit at auctions are:
Bank transfers - A straight forward transfer initiated by the winner, into the real estate agent's trust account.
Deft deduction - A scheduled debit initiated by the real estate agent from your nominated bank account.
Cash in Suitcases - Yes, you can still pay with cold hard cash if you prefer. However, this is not something we would recommend for obvious reasons.
What if the Property is Passed in at the Auction?
Will an auction always end with a winner? No. It does not. If the highest bid during the auction is still less than the reserve price, the auction is unsuccessful. The property is left unsold. This is called "passed in" at auctions. If you are still interested in the property, this article will tell you what you need to do, to buy a property passed in at auctions.
What if Your Finance Fell Through for the Property You Bought at Auction?
Your finance can fall through for various reasons:
The property is in a location or wrong type blacklisted by the bank/lender.
You seriously overpaid.
You cannot afford the property
Because properties bought at auctions are unconditional, you will, unfortunately, be legally required to buy the purchase. This is why discipline and getting the process right is important, to prevent yourself from overpaying.
Auctions are Just Games. Here's why.
At the end of the day, auctions are just games. Over 90% of the auctions end within our appraised price range of the property. That means, if buyers do not want to overspend, you should do your homework and prepare for auctions. It doesn't matter what strategies or styles you use, price, budget and the other competing bidders ARE still the determining factors.
Why do Real Estate Agents Prefer Auctions in Melbourne?
In Melbourne, Real estate sales agents prefer auctions, as it is easy to sell properties through auctions. Property sold are unconditional, and there's no cooling off period. So, there's no risk that the buyer will walk away after their offer is accepted, and leaving the property unsold. Real estate agents just want to sell the property once and for all, get their commissions, and move on.
Do Buyers Agents Prefer to Buy At Auctions?
It depends on our assessment of the property.and its popularity. Depending on a few factors, there are situations where we prefer auctions, and also situations where we prefer private sale.
Winning Auctions in Melbourne FAQ
Is there a cooling off period after an auction in Victoria?
No; cooling off period does not apply in auctions. Be 100% ready before bidding.
How much deposit do I pay at a Melbourne auction?
Usually 10%, sometimes negotiable by prior arrangement.
What happens if a property is passed in at auction?
The highest bidder will have first rights to negotiate with vendor after the auction.
Can a buyer’s agent bid for me in Melbourne?
Yes; they can strategise, bid and negotiate post-auction.
Buyers Should Do Their Homework and Prepare for the Auctions
Every buyer must prepare for the auctions. Even if they are not prepared, they are actually prepared to overpay or lose the bid. You only have that one chance to try to buy the dream property, and your offer is unconditional.
Having the property inspection and sale contract reviewed is the bare basic. We explain why a building inspection and contract review is critical in this article.
Doing the right homework and due diligence with the right data; and having a good understanding of the market, the property and who the potential buyers are will help you either put in your winning bid or walk away satisfied, knowing you have done your best. After all, you probably do not want to beat an over-bidder, at an auction.
Need a Professional Auction Bidder for the Auction?
If you are attending an upcoming auction, but you feel you do not have the confidence to bid or do not know what you need and how you should prepare for the auction, it might be worthwhile engaging our auction bidding service.
Our professional Auction Bidding Service is popular with hands-on property buyers who are either unable to bid or not confident to bid at auctions. We provide auction biddings for up to 3 auctions, helps our clients prepare for the auction, and shields our clients from the pressure and emotions during the auction.
Last but not least, good luck with the auction. Get in touch if you want to learn more.
More home and investment property buying news and tips here.
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