How to buy a home at an auction

With more and more properties being sold via auction now days you need to know how best to conduct yourself at one so here's a few tricks of the trade :

1. Do your homework - if you are serious about the property you'll need to do the following before the auction : Get a copy of the contract and have your solicitor check it out, have a property, building and pest inspection carried out, ensure that you have your finances all approved and check out what the prices of similar homes have sold for in recent times.

2. Find a good spot - stand or sit on the side opposite the auctioneer halfway to the front. This way you will be in clear view of the auctioneer and you'll be able to check out your competition.

3. Who to look out for - take a close look at the people at the auction - see if you can spot the friends of the current owners' as they may be plants to push up the bids.

4. Bid like a pro - hang back in the early stages of the auction and wait until the reserve is reached - you'll know this as the auctioneer will say something like "we are on the market". When making your bid make your first one in a strong confident voice.

5. Appear very focused - this will frighten away those who are not well prepared as they'll probably think that your pockets are bigger than their's. Lastly be prepared to bid in increments other than what the auctioneer is offering in the later stages of the auction. This will give you an element of control and just maybe you may pick up the property for less than you had budgeted.

6. Know your obligations - remember once the hammer goes down and you have made the last bid you are bound to enter into the contract of sale. In other words you will need to have the deposit (which is usually 10%) ready to pay as soon as possible or within 24 hours.

7. Know your limits - don't get carried away bidding and don't go over your limit. You need to be very calm and whatever you do don't go to an auction without doing your homework.