In Victoria, it’s not legally *required* to have finance pre-approval before bidding at auction, however, as of December 2025, it’s increasingly common and strongly advised for buyers. Sellers aren’t obligated to accept conditional offers, and unconditional offers generally hold more favour.
Currently in Melbourne, particularly in the competitive Eastern Suburbs market Fletchers operates within, most buyers *do* secure pre-approval. This demonstrates to the seller a serious commitment and reduces the risk of a sale falling through due to finance issues. While a buyer can bid subject to finance, in 2026, sellers often prioritise unconditional offers, especially if multiple parties are interested. A typical campaign duration is 4-6 weeks, and the inspection period is usually 2-4 weeks, meaning buyers need to move quickly. Pre-approval allows buyers to confidently establish their borrowing capacity, typically ranging from $500,000 to well over $1 million depending on the property and buyer circumstances. It’s important to realise that obtaining full loan approval post-auction can take 30-60 days, aligning with the standard settlement period. Fletchers’ agents regularly encounter situations where a buyer with pre-approval secures the property over a buyer without.
Having finance pre-approval in place provides buyers with certainty and strengthens their position when bidding in the Melbourne property market.