When the hammer falls in Queensland, you've bought the home.
There's no cooling off and usually no conditions.
That's why the real work at an auction happens in the weeks before it, not on the day.
No cooling off, no second chances
If you're the winning bidder, the Queensland Government is clear: you have to settle, even if:
- the house doesn't pass inspections
- you change your mind
- you can't afford it
The terms of sale usually require you to bid unconditionally. That means no "subject to finance" and no "subject to selling my place". You sign the contract straight after the auction, and the agent will ask for the deposit.
Why there's no price guide
In Queensland, it's illegal for a seller or their agent to give you a price guide for an auction property. The reasoning is that nobody can know how high the bidding will go.
You might see a price range when you filter listings online. That's only there so the search works. It isn't a guide.
The auctioneer can give you a comparative market analysis, but only with the seller's approval. Either way, you need your own view on value before auction day.
Do all of this before auction day
- Inspect the property, more than once if you can
- Arrange your finance, so you know exactly what you can pay
- Get a valuation and research recent sales nearby
- Get the contract and have a solicitor review it
- Read the seller disclosure statement and certificates that come with it
- Book a building and pest inspection
- Order a pool safety inspection if there's a pool
- Do a title search and a land tax clearance search
- Run the flood checks
- Ask the agent how much deposit is needed and how to pay it
Anything a cooling off period would normally give you time for has to be finished before you bid.
On the day
- Register to bid. Only registered bidders can bid. You'll get a bidder number or paddle.
- Ask about late changes. The auctioneer must announce the conditions of sale at the start, including the deposit.
- Check the auctioneer. They must hold a current auctioneer licence and display or announce their name.
- Set your limit and stick to it.
Reserve prices and vendor bids
The reserve is the lowest price the seller will accept. It's set in writing before the auction. The auctioneer can tell you whether there is a reserve, but not what it is.
In Queensland, the auctioneer can make vendor bids for the seller, but only up to the reserve, and they must announce each one. So if you hear a vendor bid, you know two things: there is a reserve, and it hasn't been reached yet.
Once bidding passes the reserve, the property is on the market and it will sell to the highest bidder. Any vendor bid after that point is a false bid, and false bids are illegal. So are dummy bids from the seller, their friends or anyone planted in the crowd.
If it passes in
If bidding stalls below the reserve, the property passes in and you can negotiate with the seller afterwards.
One rule to know: if you were a registered bidder and you sign a contract within two business days of the auction, there's no cooling off on that contract either. Agree after that, and the normal cooling off period applies.
If you can't settle
The consequences are serious. You may have to pay:
- the amount of your winning bid
- the cost of auctioning the property again
- any shortfall if it sells for less next time
That's why finance and due diligence come first.
Where we come in
Auctions reward preparation and a clear head. For our clients, we:
- research recent sales and form a view on value before the day
- coordinate inspections, the contract review and finance timing
- plan the bidding strategy and set a firm limit with you
- bid on your behalf, so emotion doesn't set the price
- negotiate straight after if the property passes in
If you've got an auction coming up, talk to us before you register to bid.