4 Essential Tips for Succesfully Buying Anything at Auction

Auctions can be fantastic places to grab a bargain. They can also be equally fantastic places to lose money. For several years, while retraining for a new worklife, I made ends meet by buying and reselling. I really could not afford to make any mistakes, and what I learnt during that time was the simple rules for winning at auction, whether buying to resell or just buying for yourself.

Ín a nutshell, the difference between coming out on top and going into the red usually comes down to preparation, mindset, and understanding how auctions really work. Before you raise your hand (or click the bid button), here’s where many buyers go wrong, and how you can avoid it.

1. Simply Being Human

Unless you’re a seasoned dealer, there’s something about bidding at auction that gets the blood pumping. Auctioneers know this well. From the elevated rostrum, the auctioneer controls the rhythm of the room — building tempo, lifting their voice, encouraging quick decisions, and keeping bidders emotionally engaged.

Once you fall into a bidding battle, reason often walks out the door. The urge to “win” takes over, especially if you’ve just lost a previous lot. This emotional high can be the number one reason people overpay.

Tip:
Go to several auctions as an observer before you bid. Watch the auctioneer’s techniques, study the bidders, and recognise the psychological game at play. The more you understand it, the less likely you’ll get caught up in the excitement.

2. Not Knowing What You Want

Turning up to an auction with no clear purpose is a fast track to buyer’s regret. Wandering in with a wallet full of intent but no direction usually leads to walking out with items you didn’t need, can’t use, or will regret the moment you get home.

Browsing is fine — buying blindly is not.

Tip:
Be clear about why you’re at the auction. Are you there for entertainment, or to get something specific at a good price? Set boundaries before you arrive, not during the bidding.

3. Buying Blind

In Australia, most auctions are governed by “as-is, where-is” conditions. That means no refunds and no guarantees. If it’s broken, incomplete, or misdescribed, you may still be stuck with it unless the auction house has acted misleadingly.

This makes research absolutely essential.

Before bidding, know:

• What the item costs new
• What similar items sell for at dealers
• Typical second-hand prices in classifieds
• How condition affects value
• How age, specifications, colour, and mechanical state affect demand
• Whether spare parts or repairs will be expensive

Use the preview or inspection day. Open things, test what you can, and ask questions. Most buyers fail simply because they didn’t bother to look closely.

Tip:
Know exactly what you’re bidding on and why. Set a maximum price before the auction begins and stick to it.

4. Not Understanding the Fees, Conditions & True Cost of Buying

This is one of the most common, and most painful, mistakes buyers make. The hammer-down price is rarely the final price. Buyers who don’t read the sale conditions properly can easily overspend without realising it.

Most auctioneers charge:

• Buyer’s Premium (often 15–25%)
• GST, depending on whether it applies
• Online bidding fees, platform fees, or credit card surcharges
• Storage fees if you’re slow to pick up
• Shipping or transport costs, which can be substantial for heavy or bulky items

In the excitement of bidding, many people forget these extras altogether — and only realise after they’ve won that their “bargain” wasn’t so cheap after all.

Additionally, each auction house has its own rules around:

• Pickup deadlines
• Payment timeframes
• Title transfer for vehicles
• What happens if you don’t pay

These rules matter. A missed pickup window or failure to read the fine print can turn a great buy into a headache.

Tip:
Before bidding, calculate the total cost including the hammer down price + premium + GST + payment fees + transport. Review the auctioneer’s terms carefully so there are no surprises after you win.

Final Word

With a bit of preparation, a cool head, and a clear plan, auctions can be an excellent way to find genuine bargains. Go in with knowledge, stay alert, and keep emotion out of the bidding, and there is more on that important point here.

Happy bidding!