Auctions are part theatre, part strategy, but costly bidding mistakes can turn your dream home into a missed opportunity.
Each week I attend auctions, not just for clients or for market knowledge, but for the spectacle. I’m hardly alone; it’s a much-loved Melbourne pastime.
However, lately, I’ve increasingly noticed bidders who clearly need professional (auction) help, and sometimes, professional bidders who were meant to help but somehow seem to end up costing their clients more.
With Melbourne’s clearance rates back above 70% (REIV, September 2025), competition is heating up. That means avoiding simple bidding mistakes is more important than ever.
At a recent auction in Kew, two bidders were competing against each other. From the outset, the professional bidder waited for another person to bid before making a move. From that moment on, they followed, not led. They mirrored the other’s increments, tit for tat, until one ran out of money or patience. Did they save money? Did they pay more? We’ll never know the client’s instructions or the rationale behind the chosen tactics. However, one thing is clear: bidding without a strategy (and that includes plans for various scenarios) is crucial if you want to walk away without regrets.
Auctions are layered with stories. What are the agents orchestrating? What are the buyers telling themselves? And what’s being perceived from those around them? An accurate perception based on experience is crucial for being agile once the action begins.
Inside tip: The action doesn’t start when the auctioneer opens the bidding. It begins when you attend your first inspection.
Think of the auction process like a footy final series. Four weeks of game time (your first inspection, your second inspection, then a pest & building inspection) until you reach the grand final, aka auction day. Don’t wing it. Don’t regret not planning. And don’t think you only lost by one bid. Because you usually lose at the start. Harsh, but true!
If you plan to attend an auction to gauge the market and then make a final decision on the price, you’re only helping the vendor get a better price, not helping yourself become the buyer.
Alternatively, you can set yourself up for success from the start.
Here are the top three bidding mistakes that cost buyers money at auctions and what to do instead:
Bidding Mistake #1. Facing Other Bidders – Making It Personal
Bidding Mistake: Standing directly opposite another bidder, engaging in eye contact or reactive body language. Obviously reacting to their bidding moves.
Why It Hurts: It turns the auction into a personal duel, rather than a strategic acquisition. It suggests that your actions are reactive rather than proactive. And it can be triggering and cause an irrational response, so they bid more than they intended. Like sports athletes, successful bidders focus on their own game plan – not just their opponent’s moves.
A couple of weeks ago, I watched two bidders stand on either side of the auctioneer, facing each other. One spoke confidently; the other smiled nervously. It felt like a tennis match, but not the kind where players focus on their own game until a thrilling conclusion. It felt repetitive, expected, and unintentional. The one who smiled nervously and mirrored the other bidder did not buy the property.
Better Approach: Stand confidently in your own space. Face forward. Let your presence reflect conviction in your plan, not concern about others.
Bidding Mistake #2. Bidding in $1,000 Increments – Signalling Weakness
Bidding Mistake: Repeatedly bidding in small increments, especially in response to larger bids.
Why It Hurts: While it may seem like a tactic to control price escalation, it often signals financial limits or hesitation. It can embolden other bidders who sense you’re near your ceiling. Worse, it can backfire if the other bidder regains momentum. It can sometimes appear arrogant, but more often it signals that you’ve hit your financial ceiling.
In Armadale recently, I saw Bidder 1 begin to run out of money and start to bid in $1,000 increments while waiting for instructions to obtain more. Bidder 2 didn’t realise so they matched and then continued bidding meekly in $1,000 increments. When Bidder 1 got more funds, they won. Had Bidder 2 projected confidence and intent to buy, Bidder 1 may not have sensed some hope to take another chance.
Better Approach: Use varied increments strategically. Confident bids can unsettle competitors and signal serious intent.
Bidding Mistake #3. Delaying the First Bid – Appearing Unprepared
Bidding Mistake: Waiting too long to place your first bid, especially when no one else has bid.
Why It Hurts: It often comes across as indecision or a lack of confidence, not strategic patience. Agents and auctioneers are trained to read these signals and will adjust their tactics accordingly.
Last weekend, I watched a bidder wait until after halftime to make his first bid. No one else had bid. He held a phone to his ear and looked visibly nervous. The auctioneer had placed a vendor bid at $4.9 million. The bidder offered $4.95 million after being encouraged by the auctioneer. It passed in to this only bidder. The quote was $4.8 million to $5.1 million. He bought it for $5.25 million after the auction. Did the agents know how to manage him, given that he demonstrated a lack of understanding of the auction process? Did he pay more than necessary?
Better Approach: Have a clear plan for when and how to place your first bid. Know how to set the tone and look in control.
Final Thought
Auction success isn’t just about budget; it’s about perception, timing, and psychological agility. Every move you make tells a story. Preparation is key.
GK Buy Sell can bid on your behalf, get in touch for a confidential chat.