Buying at auction in Sydney can be one of the most stressful parts of the property journey. With over 30 years in the industry, Paul Mulligan of MULLIGAN Buyers Agents has guided hundreds of clients through auctions using proven, Harvard-trained negotiation strategies that help buyers stay in control and avoid costly mistakes.
What Makes Sydney Auctions Different
Sydney’s property market is fiercely competitive, and auctions are designed to maximise the seller’s result, not protect buyers. Agents often underquote by 10–20% or more to draw in as many buyers as possible. This tactic creates false hope, wastes weeks of your time, and fuels bidding wars that push prices far beyond initial expectations. Without a clear plan, it’s easy to overcommit or walk away empty-handed. It also costs buyers emotionally and financially.
Step-by-Step Timeline to Auction Day
Buying at auction is less about luck and more about preparation. Here’s a clear timeline of what buyers should do to increase their chances of success:
Step 1: Weeks Before the Auction
Get your finance pre-approved and engage a solicitor to review the contract. Arrange a building and pest inspection so there are no surprises. At this stage, it’s also critical to set a realistic maximum bid based on independent market research not the selling agent’s price guide, which may be underquoted by 10–20%.
Step 2: Days Before the Auction
Inspect the property again to confirm there are no changes or red flags. Make sure your deposit is ready (usually 10% on the day). Plan your auction strategy — decide whether you’ll open with a strong bid, hold back until late, or use a proxy bidder to reduce emotional pressure. If you’re unsure, you can engage our Auction Bidding Service where Paul Mulligan represents you on the day, using 30 years of experience to secure the best possible outcome.
Step 3: On Auction Day
Arrive early, register to bid, and observe how the crowd and auctioneer interact. Keep calm and disciplined. Remember: auctions are designed to spark urgency and fear of missing out. Stick to your maximum limit. Walking away is better than overpaying by tens of thousands. If the property passes in and you are the highest bidder, you may have a chance to negotiate directly with the seller. This is often where an experienced buyer’s agent like Paul Mulligan can step in to negotiate favourable terms under pressure.
Bidding Strategies That Work
Auctions are designed to test your nerves. Having a plan in place can make all the difference. Here are proven strategies that help buyers stay in control:
Open with confidence
Starting with a strong opening bid can set the tone and show other buyers you’re serious. It may also discourage low-level bidders who aren’t prepared to compete. You don’t have to be first, you need to read the room.
Control the pace
If the auctioneer is moving too quickly, don’t be afraid to slow the bidding down. Ask for smaller increments or pause before responding. This gives you time to think and can make competitors feel less comfortable.
Don’t chase the crowd
Getting caught up in the excitement is one of the biggest mistakes buyers make. Always bid to your preset maximum and stop once you’ve reached it. Walking away is a sign of discipline, not defeat.
Consider using a professional
Many buyers choose to engage a buyer’s agent to bid on their behalf. At MULLIGAN Buyers Agents, Paul Mulligan applies over 30 years of experience and Harvard-trained negotiation skills to secure properties at the right price without emotion clouding the process.
Why Professional Representation Matters
uying at auction is one of the most high-pressure environments in real estate. The auctioneer’s role is to work for the seller, not the buyer, and every element of the process is designed to push you beyond your comfort zone.
Having Paul Mulligan represent you means:
● Independent advice, not influenced by the selling agent
● Auction strategies backed by decades of experience
● Confidence that you won’t overpay or miss hidden risks
● Skilled negotiation if the property passes in
In a competitive Sydney market where price guides are often underquoted by 10–20%, professional representation ensures you buy smart, not emotionally.
Final Thoughts
Success at auction comes down to preparation, discipline, and knowing when to step back. By setting a clear limit, sticking to your strategy, and considering expert representation, buyers can avoid costly mistakes.
At MULLIGAN Buyers Agents, we’re here to help first-home buyers, families, and investors navigate the auction process with confidence.
If you’re planning to buy at auction, learn more about our Auction Bidding Service and discover how Paul Mulligan can give you the winning edge.
FAQ
What are the hidden costs of buying at auction in Sydney?
Beyond the deposit and hammer price, buyers need to budget for stamp duty, legal fees, building and pest inspections, loan fees, and moving costs. These can easily add tens of thousands to the total purchase price.
Do agents underquote property price guides in Sydney auctions?
Yes, it’s common for selling agents to underquote by 10–20%. This means buyers should treat price guides as a starting point only and always set a realistic maximum budget. You should determine this before spending unnecessary money on due diligence.
Can I negotiate if a property passes in at auction?
Yes. If the property doesn’t meet the reserve and you are the highest bidder, you often get the first right to negotiate directly with the seller. This is where having a skilled negotiator like Paul Mulligan can save you money. Remember that the highest bidder generally gets the right to negotiate first, and the auctioneer’s decision is final on this matter.
Should I bid on my own or use a buyer’s agent at auction?
Many buyers prefer to engage a buyer’s agent to bid on their behalf. A professional like Paul Mulligan brings over 30 years of experience, Harvard-trained negotiation skills, and the ability to remove emotional pressure from the process.
How can I prepare for my first property auction in Sydney?
Inspect the property in detail carefully, get your finances in order, set a maximum budget, and practice discipline. Consider attending a few auctions as an observer before bidding, or engage a buyer’s agent for expert representation. Do all your due diligence before even considering bidding. There is no cooling-off period.
Paul Mulligan is the Principal Buyers Agent and Expert Negotiator at MULLIGAN Buyers Agents in Sydney. With over 30 years’ experience in property, Paul represents homebuyers and property investors across Sydney, specialising in property acquisition, negotiation, due diligence, and buying strategy. He has completed Negotiation Mastery at Harvard Business School and is a consumer advocate on property-buying and underquoting issues.
