When buying at auction it is important to do your research and be well prepared.

Before auction day it is a good idea to familiarise yourself with the process by attending some other auctions.

You should be aware of the facilities in the area and watch local real estate prices to get a feel for house values.

Advise the selling agent of your interest and they will keep you up-to-date with any changes - the house may be sold before the auction, for example.

Have the house checked by an expert who will tell you of any problems. This can be done by a builder or architect. You can find these people listed in the Yellow Pages under Building Inspection Services.

Know your limit before the auction, but if you really want the property be prepared to pay more. If you need to sell your property to purchase at auction speak with the agent before-hand to discuss an alternative settlement date.

The successful bidder will need to pay a deposit - generally 10 per cent - and sign the contract on the fall of the hammer. You should select a conveyancer or solicitor to act on your behalf for settlement, and organise insurance to cover your interest in the property (this should be arranged before auction if possible).

Be aware that there is no cooling off period in Tasmania.

A property that does not reach the reserve price will be passed in. As a bidder, you may be asked to negotiate, with the highest bidder generally given first preference.

A property properly auctioned provides the most accurate measure of what the market will pay for the property. It is a popular way of selling a home, and can be competitive.

For this reason it is important you are aware of the procedures before bidding on a home.