First time buyers need to be thorough in their research to avoid the pitfalls of buying at auction…

Richard Auterac, Auctioneer at Jones Lang LaSalle, commented: "The top of the market has been reached, we've known that for six or seven months now, when you get to that point people are more cautious."

"These are sobering thoughts from a renowned expert in his field and first time buyers must bear this in mind. The temptation will be to rush in, but the expression 'catch a falling knife' has never been more apt”.

First Rung’s Paul Holmes cites no less than thirteen critical success factors for obtaining the best out of auctions:

• Plan well in advance, highlight the properties of interest, never focus on one in particular.
  
  
• Upon collecting the keys to view, it is advisable to take a builder with you. Make sure you uncover all the faults with the properties. Take time, examine every aspect thoroughly.
  
  
• Upon visiting the area, if it is new to you talk to neighbours to find out a little of the history of those that owned before. Tour the general area, establish what services are "on the doorstep".
  
  
• Visit the area and the properties at different times in the day.
  
  
• Arrange your finances well in advance, make sure you have an agreement in principle, an AIP, in place from the bank or building society to present to the auctioneer on the day of sale. Together with your deposit this ensures you are ready to complete inside the specified time, usually one month.
  
  
• You must be aware that when the hammer falls, if it's your bid, you have bought the property, it is not an offer. You are legally obliged to buy. If you withdraw you lose your deposit and can be pursued for any subsequent loss incurred by the auctioneer or vendor.
  
  
• Do not bid yourself, avoid the temptation to become emotionally involved, ask the builder or a friend to do it on your behalf having agreed a strict price limit on the properties you have interest in.
  
  
• Search land registry for prices of similar properties, or use one of the many house price sites currently on the web.
  
  
• Search the auctioneers recent results to ascertain property sale values of similar properties.
  
  
• Be aware that auctions are not covered by the normal estate agent legislation. Caveat emptor, buyer beware, has never been more relevant. Under normal legislation the agent is instructed by the vendor to achieve as high a price as possible. Most reputable agents also offer a due amount of care and consideration to a purchaser. At auction no such liability is present. The buyer assumes all responsibility for the purchase with no redress to other parties.
  
  
• Be aware that there are legal packs covering details on individual properties available at auction, these provide invaluable information. In some respects the HIPS (seller packs) have been supplied by auctioneers for some time.
  
  
• Conveyancing should be cheaper as a consequence of most of these details being already available.
  
  
• If you buy ensure you get bricks and mortar insurance immediately, generally these policies are available in house on the day of auction.