Much has been written about the government’s initiatives to clean up the bidding practices at real estate auctions. Legislation is soon to be made imposing tougher guidelines and penalties for unethical behaviour by real estate agents, particularly in relation to dummy bidding and inflated quoting of property values. While these moves will represent a bonus to buyers seeking a fairer system, don’t be fooled into a false sense of security. Buying a home at auction still remains one of the biggest traps for the unwary. Thinking that you can go it alone without professional help is not only foolish, it can prove extremely costly.

When buying a property at auction, it is important to rely on the expertise of legally trained professionals. Special conditions apply to buying and selling at auction that are very different to the usual private contracts of sale and these need to be fully explained to prospective purchasers by solicitors who specialise in conveyancing law. For example, purchasers at auction do not enjoy the benefit of the “cooling off” provisions available to most purchasers through private contracts of sale. All background checks about the property including title particulars, boundary measurements and easements, planning orders and council notices need to be made before the day of the auction. Your solicitor will be able to go through all of the documentation making up the auction contract so that you are made fully aware of the particulars of the property and your rights and responsibilities as a potential owner of it. Mistakes cannot be rectified after the fall of the hammer on auction day. It makes sense to know exactly what you are buying so you can make an intelligent and reasonable bid. And remember, real estate agents are not legal practitioners.

Being prepared for an auction gives you more confidence to bid successfully. Often you may be only one of several potential buyers seeking a particular property in the same price range. What will make you the successful bidder is your ability to bid with the confidence that comes from being prepared and armed with all the facts and figures you need. You don’t want to be left wondering about the effects of an easement running through the property or of the adequacy of the pool fencing during the heat of the auction bidding process. You want to be able to satisfy yourself about the property well in advance, set your budget for the maximum bidding price you can make and be confident on the day that you are fully ready to purchase.

While some purchasers bemoan paying fees for professional advice, thinking they can save by doing it themselves, they can learn from others who testify that the money they spent on professional advice was the best investment they made.