Auctions vs private sale

Melbourne runs on auctions to a degree most other cities don't. The difference between buying at auction and buying by private treaty is not a matter of style — the legal protections are genuinely different.

What that means practically

• Get unconditional-quality finance sorted before you raise your hand. Pre-approval is the minimum.
• Do your building and pest inspection BEFORE the auction, not after.
• Have your conveyancer review the contract and Section 32 before auction day.
• Know your absolute limit and write it down. Auctions are designed to move you past it.

Private sale is more forgiving

Buying by private treaty in Victoria gives you a three-business-day cooling-off period, during which you can withdraw for a small penalty. You can also make an offer subject to finance or subject to a satisfactory building inspection. The trade-off is that you're negotiating against an unknown — you can't see the other bidders.

On auction day

• The property is passed in if it doesn't reach the reserve; the highest bidder usually gets first right to negotiate.
• The vendor can make one vendor bid, which must be announced.
• Bring identification and your deposit arrangement.
• Bidding confidently doesn't win auctions. Having a higher limit does.