Buying at an auction can be an extremely nerve-wracking way of purchasing a property but in the Eastern suburbs they are the most common way of buying – and selling – houses and apartments.

Bidding, and knowing when to bid, can be difficult, and it should always be remembered that if the auctioneer knocks the property down to you, that’s it: it’s yours and you’ll be legally obliged to settle.

A good agent will, however, advise you on your best strategy and help you through if the whole process becomes confusing. And on the plus side, you know you’ll be paying exactly what the market thinks it’s worth – rather than just the seller.

There are a few key things to remember:

1. Go along to an auction as an observer first, to see how things are done. Watch what is going on, and if there’s anything you don’t understand, jot it down to ask your agent later. It’s no guarantee you will be relaxed at the auction at which you want to buy, but hopefully it will make you a little more confident!

2. Set your spending limit in accordance with your loan amount. It’s very easy to get carried away by the excitement of the moment, and keep bidding more and more for a property you might well not be able to afford. Decide on your limit before you go – and stick to it!

3. Make sure you’ve done all your homework first. You should have a good idea of the property’s value, of the value of similar properties nearby and of the market, and your solicitor or conveyancer.

4. Don’t leave it too long to bid – potential buyers have been known to miss out completely because they missed their moment! By the same token, don’t be tempted to bid against yourself just to get the property ‘on the market’.

Remember: if you’re the highest bidder when a property is passed in, you get the first chance to negotiate the sale.

5. Don’t rule out trying to buy a property before it goes to auction. Your agent will advise you on this strategy.