Auction vs
private treaty
Two different ways to buy a property, two different sets of rules. Understanding the differences helps you prepare for either — and avoid costly mistakes.
The biggest difference
At auction: No cooling-off period. Once the hammer falls, you're committed. All due diligence must happen before auction day.
Private treaty: Usually includes a cooling-off period (3-5 business days depending on state). You can withdraw, though penalties may apply.
How they compare
Auction
Cooling-off
None — commitment is immediate
Price transparency
You see competing bids in real-time
Negotiation
Limited — bidding is the negotiation
Timeline
Fixed auction date creates urgency
Due diligence
Must be completed before auction
Deposit
Usually 10%, paid on auction day
Best for
Competitive markets, confident buyers
Private Treaty
Cooling-off
3-5 business days (varies by state)
Price transparency
You don't see other offers
Negotiation
Back-and-forth negotiation possible
Timeline
More flexible, less pressure
Due diligence
Can continue during cooling-off
Deposit
Negotiable (often 5-10%)
Best for
Careful buyers, complex purchases
Prepare for each scenario
Before auction day
- Complete building and pest inspections
- Review the contract with your conveyancer
- Do your title search
- Confirm your finance is unconditional
- Set your maximum bid and stick to it
- Register to bid (bring ID)
- Attend other auctions to practice
Before making an offer
- Get pre-approval (shows you're serious)
- Research comparable sales in the area
- Prepare your offer with conditions if needed
- Know what's negotiable (price, settlement, inclusions)
- Understand cooling-off rules in your state
- Have a conveyancer ready to act
- Be ready to move quickly if accepted
Whichever method you choose,
go in prepared
Our property reports give you the intelligence you need before auction day or your first offer — planning overlays, risk factors, and structured analysis.
Next steps
Continue with the full First Home Buyer Guide, check pricing, or get in touch.
This information is general guidance only. Cooling-off periods and auction rules vary by state. Always verify current rules with your state's consumer affairs body and seek professional advice.