Buyer’s guide · NSW
Buying at auction in NSW: what every buyer needs to know
There’s no cooling-off at a NSW auction, so the work has to happen before the hammer falls. Here’s what to check, how the day works, and what the new price guide rules mean for you.
Auctions move fast. You bid, the hammer falls, and you sign the contract and pay the deposit on the spot. There’s no five-day window to change your mind.
That’s why buying at auction is mostly about preparation. If your contract review, finance and inspections are done beforehand, an auction needn’t be riskier than a private sale. If they’re not, you’re bidding on a contract you haven’t read for a property you haven’t checked.
Key takeaways
- There’s no cooling-off for a property bought at auction in NSW, or for a contract exchanged on auction day after it’s passed in.
- You’ll usually pay the deposit, often 10%, as soon as you’ve signed.
- Get the contract reviewed, your finance confirmed and your inspections done before auction day.
- You must register with ID to bid. The seller gets one vendor bid, and it must be announced.
- From 17 November 2026, agents must include a price or price range in residential sale ads.
On this page
Why auctions are different
At a private sale in NSW you usually get a 5 business day cooling-off period after exchange. At auction you don’t. The same applies if the property is passed in and you exchange later that day. If you’re the successful bidder, you’re the buyer and the contract binds you.
The contract won’t usually be subject to finance or a building report either. If your loan is refused or an inspection turns up a problem after the auction, you’re still committed.
If you can’t complete, the consequences are serious. You can lose your deposit and be liable for the seller’s losses.
What to do before auction day
Start as soon as you’re serious about a property. Most of these steps take days, not hours.
Get the contract reviewed
The seller must have a contract ready before the property is advertised, so ask the agent for it early. Your lawyer can check the special conditions and ask the seller’s solicitor to change anything unfair before the auction. Once the hammer falls, you can’t.
Confirm your finance
Pre-approval on its own isn’t enough. Ask your lender or broker whether they’ll value the property before auction, and set your limit on what they’ll actually lend. Budget for stamp duty and other costs on top of the price. Our stamp duty guide explains how duty is worked out.
Organise your inspections
Get a building and pest inspection before the auction. For a unit or townhouse, get a strata report too. Our strata buying guide covers what to look for.
Sort out the deposit
The deposit is 10% of the price unless a lower amount is agreed. If you want to pay 5% or use a deposit bond, get it agreed in writing before the auction. Have the funds ready to transfer on the day. Our deposits guide has more detail.
Auction-ready checklist
- Contract reviewed and any changes agreed with the seller
- Finance confirmed and your bidding limit set
- Building and pest report, plus a strata report if relevant
- Deposit arrangements agreed and funds available
- Photo ID ready for bidder registration
- Names of all buyers confirmed for the contract
How the auction works on the day
Registering to bid
You can’t bid at a residential auction in NSW unless you’ve registered with the agent. You’ll need to show ID, and you’ll get a bidder number to display when you bid. The bidders record is confidential. The agent can’t show it to anyone, including the seller. NSW Fair Trading’s bidder’s guide sets out the rules.
Vendor bids and dummy bids
The seller can have one bid made on their behalf by the auctioneer, and it must be announced as a vendor bid. Dummy bids, which are fake bids made to push the price up, are illegal. Penalties for businesses that engage in dummy bidding were doubled this year to $110,000.
Bidding for someone else
If you’re bidding for another person or a company, register that way and tell the agent. The buyer needs to be named correctly in the contract, so check the details with your lawyer beforehand.
If you win
You’ll sign the contract and pay the deposit straight away. Settlement is usually around six weeks later unless a different date has been agreed.
If it’s passed in
If bidding doesn’t reach the reserve, the property is passed in. The highest bidder is often given the first chance to negotiate. A contract exchanged on auction day after a pass-in still has no cooling-off period, so don’t relax your checks.
The new price guide rules from 17 November 2026
New underquoting laws start on 17 November 2026. From then, residential sale ads must include a selling price or price range, so ‘price on application’ and ‘contact agent’ are out. If a range is used, the top can’t be more than 10% above the bottom. Agents must base their estimated selling price on the three most comparable sales, and online ads must be updated within one business day if the advertised price no longer complies.
Agents also can’t advertise a price below an offer the seller has rejected, or below the highest bid at an earlier auction that didn’t sell. The maximum penalty for underquoting rises to $110,000 or three times the agent’s commission, whichever is greater. From 8 February 2027, agents will also have to provide a Statement of Information showing the comparable sales behind the price. The NSW Government has announced both start dates.
A price guide is still only a guide. It isn’t the seller’s reserve, and properties can and do sell above it. Set your limit based on your own research and your finance, not the advertised range.
Buying before the auction
Sometimes the seller will accept an offer before auction day. That’s a private sale, so cooling-off would normally apply. But sellers almost always ask for a 66W certificate to waive it. Our guides to pre-auction offers and 66W certificates explain what that means for you.
Frequently asked questions
Is there a cooling-off period at auction in NSW?
No. There’s no cooling-off period for a property bought at auction, or for a contract exchanged on auction day after the property is passed in.
How much deposit do I pay at auction?
Usually 10% of the price on the day, unless the seller has agreed to a lower amount such as 5%. Get any change agreed in writing before the auction.
Can my auction bid be subject to finance?
No. A property bought at auction is bought unconditionally, so your finance needs to be sorted before you bid.
Can the seller bid at their own auction?
The auctioneer can make one bid on the seller’s behalf and must announce it as a vendor bid. Any other bid made for the seller is a dummy bid, which is illegal.
What happens if I win but can’t settle?
You can lose your deposit and be liable for the seller’s losses. Talk to your lawyer straight away if settlement looks at risk. There may be options, such as negotiating an extension.
Buying at auction?
Talk to our property team
Property & Conveyancing
Our team can review the contract before auction day, negotiate changes with the seller’s solicitor, check your deposit arrangements and make sure you’re ready to sign when the hammer falls.
This article is general information only and is not legal advice. It reflects NSW law at the date of publication. Please contact us for advice about your circumstances.
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