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.
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.
If a registered buyer bids and the offer gets accepted at the auction, the new owner must meet as quickly as possible with the auctioneer, because the successful bidder at the fall of the hammer is required by law to pay 10 per cent of the purchase price.
Unlike private treaty sales with a fixed price, there is no cooling off period at auctions; the successful bidder has to settle the contract.
