For most people, buying a home is the biggest purchase of their lives.
Auctions are a popular way to buy a house.
One reason is an auction can shorten a long and tedious house hunt to just an afternoons work.
However, bidding and buying at auction is like sitting for an exam.
Success needs homework: including market research, understanding the bidding process and having the right amount of finances.
Experienced Sydney western suburbs Real Estate principal, Elie Kaltoum, says the best way to learn is to first watch some auctions.
Elie Kaltoum says timing is key.
Arrive half an hour before it starts to have enough time to make a final inspection of the property on offer.
It is also the time to get a last look at the documents of sale, such as the terms of settlement - because after the auction, the conditions cannot be changed.
Elie Kaltoum says interested buyers should first get the necessary checks done.
On the day of an auction, potential buyers have to register with the auctioneer, produce some proof of identity and get a number for the bidding.
Most sellers set a reserve price, which is the minimum sale price that they will accept.
If the bidding reaches the reserve price, the property will be on the market and must be sold in the auction.
Nepalese-Australian Rajish warns that its important to keep a cool head during an auction and stick to your budget.
Unlike private treaty sales with a fixed price, there is no cooling off period at auctions; the successful bidder has to settle the contract.
If a property does not sell under the hammer Elie Kaltoum says 70 per cent of homes find a new owner in the two weeks after the auction.
In a situation like this, the real estate agent will negotiate a price which reflects fair market value between the seller of a property and the prospective buyer.
