Everything works in cycles, and so does the property market.

In the property cycles there is always a time during which buying property on the auction is a great investment, and the trick is to know when. It would be wise to realise that buying a property on auction does not necessarily mean that you will always be getting a good bargain.

There are many different types of auctions and it’s vital that you familiarise yourself with the protocols before engaging.

1. Voluntary auctions

- This is where the seller places his/her property on auction in anticipation of achieving the highest buying price for the property.

2. Sheriff auctions

- Sheriff auctions are where property is sold in execution. The court issues a judgment for the property to be attached and sold in order to settle debts owed by the owner - this is carried out by the sheriff of the court and sold to the highest bidder.

It is best to prepare yourself thoroughly prior to the auction and be ready on the actual day for making your bid. Try to view and inspect the property prior to the auction date. Gather as much additional information as you can about the property as well as the neighbourhood.  Read the conditions of sale in advance.

On the day of the auction you will need to register as a bidder and have your FICA ready. 

Financially you will need:  the registration fee, and the auctioneers commission, which is payable at the auction.

If your bid is immediately successful and not subject to approval, you will need to sign off on the conditions of sale confirming your purchase of the property.

Should you default on the sale after the auction, the seller will have the right to take legal action against you as you have signed a legally binding agreement.