Property auctions are increasingly common in Perth's competitive market. Understanding how auctions work in WA — and preparing properly — dramatically increases your chances of success while protecting you from costly mistakes.
How Property Auctions Work in WA
In WA, properties are sold at auction under the Auction Conditions of Sale. The auctioneer conducts bidding until the highest bid meets or exceeds the seller's reserve price. If the reserve is reached, the property sells unconditionally to the highest bidder. If bidding falls short of the reserve, the property is "passed in" — the highest bidder may then negotiate privately with the seller.
Preparing Before Auction Day
Preparation is everything. Unlike private treaty sales, auction purchases are unconditional — there is no cooling-off period and no subject-to-finance clause. This means your due diligence must be complete before you bid.
- Get unconditional finance approval (not just pre-approval)
- Complete a building and pest inspection before the auction
- Arrange your own independent legal review of the contract
- Research comparable sales in the area to set your maximum bid
- Prepare a 10% deposit — you must pay on the day if you win
- Attend a few auctions as an observer before you bid for the first time
Auction Day Strategy
Arrive early. Introduce yourself to the auctioneer and register as a bidder. Bidding strategy matters — confident, decisive bidding can deter competitors, while hesitant bidding can invite others into the room. Set your absolute maximum before the auction and stick to it. Don't let emotion push you beyond your limit.
- Bid in confident, round increments early to signal intent
- If the property passes in, you have the right to negotiate first as the highest bidder
- Know your walk-away price and respect it
- Have your identification and 10% deposit cheque or bank transfer ready
After Winning at Auction
If your bid is successful and the reserve is met, you sign the contract on the spot and pay your 10% deposit. The sale is unconditional and legally binding from this point. Your settlement agent then takes over to manage the legal transfer process through to the settlement date agreed in the contract.
Searching for Your Next Property?
Our agents can guide you through the auction process and help you find the right home at the right price.
Frequently Asked Questions
No — this is a critical risk. If you win at auction and cannot complete settlement, you lose your deposit and may face legal action. You must have unconditional (fully approved) finance before bidding at auction.
A vendor bid is a bid made by the auctioneer on behalf of the seller to help reach the reserve price. Auctioneers in WA are permitted to make vendor bids but must announce them clearly. Vendor bids can be made up to (but not at or above) the reserve.
The standard deposit at auction is 10% of the purchase price, payable on the day. Confirm with the selling agent whether a bank cheque, personal cheque, or electronic transfer is accepted.
