FINANCE - Ensure that you have your Finance in place prior to the Auction. Your financier can supply you with a letter stating you are approved for a certain amount. This guarantees you know your bidding limit. Make sure you allow for all extra legal costs involved. eg. Stamp duty and conveyancing.

DO YOUR RESEARCH - Regardless of whether you are buying at auction, it is imperative to do your homework and research prices, then when it comes to bidding, you know exactly what you are bidding for.

INSPECTIONS - Once the Auction is finished there is no opportunity to get building or pest inspections done. Make sure that any reports or inspections have been carried out to your satisfaction before you attend the Auction.

WORK OUT YOUR LIMIT - It is important that you set your own bidding limit. Decide what the property is worth to you based on what you can afford. To make sure you can afford a property work out the limit on your loan and add 3% to the interest rate. If you could still make the payment then that is a very safe limit.

It is important not to be drawn into a bidding war on a property you want. Emotion can lead to you paying more than you can afford and there is no cooling off period with an Auction.

ATTEND OTHER AUCTIONS - It pays to attend as many auctions as possible before you start bidding. Take mental notes on how people bid and work out a style that will suit you. You never know when one of these bidders might be at the auction of the property you want to buy!

REGISTER YOUR INTENT - Once you have inspected a property if you are interested it is important to let the Agent know. They will ensure you will be advised if there are offers made by another party prior to the Auction Day.

DEPOSIT - When the property is sold at the Auction you are required to sign the Contract of Sale and pay a deposit of usually 10% on the spot. This can be paid by Personal or Bank Cheque or subject to prior approval with the Agent by Deposit Guarantee.

SET AN UNEVEN LIMIT - Wherever possible, it pays to set an uneven limit, rather than stopping on a round number. For example, rather than stopping at 410,000, try going to 411,000. A small $500 bid could make the difference if the other bidder is close to their limit.

ASK FOR HELP - Don't be afraid to ask a friend, relative or real estate agent, to assist you with your bidding. Many people ask someone else to bid on their behalf as they may be less inclined to bid emotionally and will not exceed a predetermined limit.

An adviser's experience can be an important asset on auction day. However, if they are going to bid for you, you need to make sure that they have very clear instructions in writing on what they can and can't do on your behalf.

DRESS FOR SUCCESS - It never does any harm to dress for the event. If you look like an affluent, confident property buyer, this will help convince your competition that you won't stop until the property is yours. Remember that it isn't always the person with the most money that wins at auction. It is the person who convinces everyone else to stop bidding.

CHECK THE PAPERWORK - If you are seriously interested in a property and intend to bid you should have your Solicitor inspect the Contract of Sale. It is a good idea to have a good read through all the paperwork related to the auction beforehand. Wherever possible, contact the agent handling the sale and ask them to provide you with a copy of the documentation.

This is normally possible in the week prior to auction. Read through all of the documents and always ask if you are unsure of anything. It is important to clarify details such as settlement terms, deposit and fixtures before the auction commences, (not after it has been knocked down to you)!

On the Auction Day you should always check that your copy of the Contract of Sale is exactly the same as the original Auction Contract and that there have been no late changes.

BE CLEARLY VISIBLE - Remember how an auction looks from the auctioneer's perspective. They are often looking at a large number of people who are invariably turning around, whispering, brushing away flies, shielding their eyes, etc.

If you are standing at the back of this scene, or hidden in the shade of a tree, the auctioneer may well miss your bid, particularly when you are bidding for the first time. Stand in clear sight of the auctioneer and make your first bid obvious to them.

CLEAR FIRM BIDDING - Make sure the auctioneer understands what you are doing. Bid early, clearly and confidently, and avoid unusual sign language that may be misunderstood.

Buyers are usually reluctant to start bidding at Auction but the best policy is to bid loudly and confidently signalling to all other bidders you intend to purchase the property or should the Reserve Price not be reached that you are given an opportunity in any further negotiations.

MAINTAIN CONTROL - If the bidding is increasing in larger denominations than you are comfortable with, consider offering a lower denomination as your bid. The auctioneer does have the right to refuse it, but there is absolutely no harm in trying.

On the other hand, don't be afraid to try and increase the bidding with a "knock out" bid if your competition is showing signs of slowing down. This can often throw doubt into the mind of the other bidders and get them to stop even though they have not yet reached their limit.