Making an Offer Before Auction in Victoria

It's Tuesday night. You've been through the house twice, you love the second bedroom, and the auction is on Saturday.

The reserve is published on the listing. The agent has hinted the owners "would look at something before the weekend".

So now you're wondering. Do you wait for the hammer, or make a move first?

What a pre-auction offer actually is

A pre-auction offer is exactly what it sounds like. You put a price to the seller before auction day, and they decide whether to take it.

Consumer Affairs Victoria says your offer will usually be a signed contract of sale. The negotiation then works the same way as a private sale.

That changes what you can ask for.

Not every seller will entertain one. The agent will tell you if they're open to offers.

Why it can suit a first home buyer

At auction, you sign the contract that was on display. You can't add a finance clause or change the settlement date unless the seller agrees.

Before auction, it's a negotiation. CAV lists the kinds of conditions you can ask for in a private sale:

• Subject to finance. The sale depends on your loan being approved, with a lender named in the contract.
• A building or pest inspection. The sale depends on the report coming back clean.
• Settlement timing. A date that suits your lease or your lender.
• Deposit terms. A part deposit now and the rest later, if the seller agrees.

Each condition you add can make your offer less attractive to the seller. A clean offer at a slightly lower price can beat a higher one full of conditions. That's the trade-off you're weighing.

If you're working out what a finance clause would need to look like on your loan, book a chat. We'll look at where your approval sits before you sign anything.

The cooling-off catch

In a normal Victorian private sale, you get three clear business days to change your mind. Pull out in that window and you lose $100 or 0.2% of the price, whichever is greater.

Here's the catch. CAV says that if your pre-auction offer is accepted less than three clear business days before the auction, you get no cooling-off at all.

So an offer accepted the Thursday before a Saturday auction is as binding as a bid on the day.

That's why finance and inspection conditions matter. Close to auction day, they're the only safety net you have.

Where the published reserve fits in

Since 16 October, agents have to publish the seller's reserve at least seven days before an auction. If the seller changes it, the seven days start again.

CAV treats pre-auction offers as private sales. If the reserve is already published, the seller can accept your offer before the seven days have run.

The reserve tells you the lowest price the seller has said they'll take at auction. It doesn't tell you what they'll accept from you on a Wednesday night. Some sellers will take less for certainty. Others want more to call the auction off.

Whatever the number, the schemes and the stamp duty rules look at the price you actually sign. The $600,000 duty line and the $950,000 cap on the 5% Deposit Scheme don't care what the reserve was.

What to have sorted before you make the offer

A pre-auction offer moves fast. The agent may want a signed contract the same night.

• Your top price. Worked out from your pre-approval and your savings, after stamp duty and costs.
• The contract read. Your conveyancer has been through the contract and Section 32.
• Your conditions. Which ones you need, and which you could live without.
• A lapse date. CAV suggests writing in a date your offer expires, so you're not left hanging.
• The deposit. How much, and how fast you can move it.

Being ready doesn't mean you have to offer. It means you're choosing it, not scrambling.

Waiting for the hammer is a choice too

Some buyers prefer the auction. Everyone sees the bids.

Others like the quiet of a private negotiation and the chance to add a condition. Neither is wrong. It comes down to how sure your finance is, how much you love the place, and how much risk you can carry.

We've helped over 100 first home buyers into the market. If you want to talk through how your finance would hold up before auction day, book a chat.

Let's get you into a home.

Figures verified 2 November 2026 against Consumer Affairs Victoria's pages on buying at auction, buying by private sale and the new property sales and underquoting laws.