Deciding what to buy
Auction versus private sale
Why an auction purchase needs finance, inspection and legal review completed before auction day, not after — and how that changes your preparation.
- A private-sale contract can generally be made conditional and usually carries a statutory cooling-off period.
- An auction sale becomes immediately binding and unconditional, generally without a cooling-off period.
- Finance, inspections and legal review must happen before auction day, not after.
- Bidding strategy and the offer process itself are covered in the Making an Offer hub.
Two different purchase methods, two different rights
In Victoria, a private-sale contract can be made subject to conditions with the seller's agreement (such as finance or building inspection), and a cooling-off period of three clear business days generally applies to residential private sales (Consumer Affairs Victoria, verified 30 Jul 2026). An auction sale is different: the contract becomes immediately binding and unconditional on the fall of the hammer, and there is no cooling-off period for a property bought at auction (Consumer Affairs Victoria, verified 30 Jul 2026). This catches buyers out beyond auction day itself: if a pre-auction offer is accepted less than three clear business days before the scheduled auction, you also forfeit the cooling-off period — even though negotiating a pre-auction offer can feel like an ordinary private sale.
What this means for your preparation
Buying at auction means finance, building and pest inspection, and legal review of the contract all need to happen before auction day, not after — there's no cooling-off period to fall back on if you discover a problem afterward. A private-sale purchase generally gives more room to negotiate conditions into the contract, but isn't guaranteed to include a right to negotiate price after your offer, depending on how the seller runs the process.
This page and the offers hub
This page covers how the purchase method affects your preparation and decision-making; bidding strategy, negotiation tactics and the offer process itself are covered in full in the Making an Offer hub.
Practical checklist
Before bidding at auction
- Arrange finance approval before auction day, not contingent on winning
- If negotiating a pre-auction offer, check whether it falls within three business days of the scheduled auction date, which removes cooling-off rights
- Complete building and pest inspection before auction day
- Have a solicitor or conveyancer review the contract before auction day
- Set and hold to a maximum bid decided in advance, not in the moment
Relevant Delora tool
Questions for a professional
- Given this specific contract, what conditions could I realistically negotiate in a private sale that wouldn't be available at auction?
Official resources
Sources and methodology
- Buying property by private sale — Consumer Affairs Victoria (retrieved 30 Jul 2026)
- Buying property at auction — Consumer Affairs Victoria (retrieved 30 Jul 2026)
Figures on this page are drawn from Delora's local knowledge graph, refreshed from these primary sources and checked for changes on a regular schedule. If a figure here looks out of date, the official source above is always the authority — please let us know.