Before the auction:

1. You should obtain a copy of the auction listings. This may have information relating to the property as part of a "home buyers package".

2. After looking around the property yourself, consult other professionals.  Consider having a home inspection done on the property.

This report will advise on the condition and value of the property and may also suggest certain inquiries you should make, other specialist reports you should obtain or indicate expenditures you may face over repairs. 

3. Consult your financial institution to make sure you have financing/funds available.

4. Ask the auctioneer if they have information relating to the property. 

5. Decide your upper limit of the price you should pay for the property.

6. Check what methods of payment the auctioneer will accept for the property. If you are the successful purchaser, you will usually be required to pay a percentage deposit subject to a minimum specified in the catalogue immediately after the sale and should therefore have sufficient funds to cover this. It may be necessary, for example, to make arrangements for a banker's draft prior to the sale.

How does the auction sale work?

1. If you have any inquiries on the day of the sale, ask the auctioneer or his staff. They are more approachable than most imagine and are knowledgeable about the properties they sell.

Ask for a copy of the addendum containing any changes to the original details.

2. If you do attend the sale, listen carefully to the opening remarks of the auctioneer. Amendments may be announced which directly affect the property in which you are interested.

3. Most properties are subject to a reserve price below which the auctioneer cannot sell the property at the auction. It will be made clear whether the property is being sold subject to a reserve in the catalogue or conditions of the sale although the reserve price will not usually be disclosed.

4. Attend the sale and bid for the property up to but not beyond the price you have previously decided is your maximum bid.

5. It is a popular myth that auctioneers mistake any casual movement for a bid. Do not worry, auctioneers are able to distinguish between someone scratching their head and bidding, but, if for some reason a mistake is made, tell the auctioneer straight away; do not wait until the end of the sale.

6. If you are the last and highest bidder at the fall of the auctioneer's hammer, you are the successful purchaser and are legally committed to pay the price you bid and complete the purchase.

7. No one can outbid you after the sale and the vendor is equally bound legally to complete the sale on the day and under he terms stipulated in the contract.

8. You will normally be required to close the transaction within 30 days.

If the property remains unsold after the auction (i.e. your bid was below the reserve price) speak to the auctioneer to register your interest before leaving the saleroom. It may be possible to buy the property by private treaty at a price that is agreed to with the vendor.