There's an art to bidding at auction, but first you have to know the rules.

ON THE day of the auction, ensure you arrive early and make a final inspection of the property. Check the contract of sale, vendor's statement and auction rules, which should all be on display for at least 30 minutes before the auction commences. If you have any questions about the auction rules, don't hesitate to ask the agent in attendance.

It is important to note a key rule of the auction process, that is, if the property is passed in below the reserve, the owner through the agent or auctioneer will first negotiate with the highest bidder for the purchase of the property.

If you have participated in the bidding or have been sitting back watching how it is progressing, and the auctioneer announces the property is going to be passed in, it is a good strategy at this point to make sure you are the highest bidder to secure the option to negotiate with the vendor.

Once the property's passed in, it is too late. The auctioneer can't reopen the auction to accommodate a late bid and override the right someone else has secured ahead of you.

How long do you have to negotiate with the owner? This may well depend on whether you are prepared to accept the owner's price. If you are not prepared to meet the owner's asking price, the owner may end negotiations with you immediately and start negotiating with another interested party.

If you are not confident about bidding at auction you should consider using a buyer's agent to assist you. Find a buyer's agent who is a member of the REIV.

-- Enzo Raimondo, Chief Executive Officer, REIV