Are you an auction newbie or an auction know-it-all?

Buying a home at auction can be as confusing as it is exciting.

You’re bound to have questions — some you might even feel a little embarrassed to ask.

But there’s no such thing as a silly question when it comes to preparing to buy at auction.

Here, we answer the questions you’ve always wanted to know but were too afraid to ask.

Should I dress to impress?

Sharp dress could indicate a determined buyer.

Those who are in the market to buy a property have a tendency to dress up. Formal wear is sometimes acts as a confidence boost — an auction essential — but presence is equally important.

Buyers who are serious about buying should stand somewhere prominent so they can see everyone else in the room, and they should be loud and clear.

What should I bring?

First of all, it's crucial buyers come equipped with a way to pay the deposit.

If you plan to make an electronic transfer, check with the agent before the auction starts and also with your bank - you don't want to be caught out or held up by transfer limits on your account.

Can I get someone else to bid on my behalf?

If you’ve never bid before, having a more experienced friend or family member do your bidding could be the way to go. And introducing them to the agent can make sure they’re not just another face in the crowd at auction.

Whether it’s a representative or yourself, make yourself known to the sales agents so we can keep a strong eye out for your action.

Can I bid in any number I want?

When eyes are on you and the pace picks up, you’ll need to call out a number — but what?

The auctioneer will likely call for a certain rise. And while a multitude of bidding strategies exist, experts agree being loud and clear are key.

Some agents recommend calling the full price rather than the rise amount, and nominating an uneven number, such as $751,000. Some bidders tend to end on a round number, so an odd number could be the difference that helps secure the property.

What’s a vendor bid?

An auctioneer may declare a vendor bid on behalf of the seller to kick things off if the crowd doesn’t, or to push bidding along.

This is one of the auction terms that first-time buyers, or those new to the New Zealand market, often don't understand but should be familiar with.

What does ‘on the market’ actually mean?

“On the market” and “reserve” are also fundamental terms to be aware of.

Once the bidding has met the reserve price — the point where the vendor is happy to sell — the auctioneer will declare the property “on the market”. This means the prpoerty will be sold to the highest bidder.

Don’t be scared to ask if a property is on the market? Once it is, you are playing for keeps.

Vendors can set the reserve at any price level they want, regardless of whether that level is refecltive of the property's market value.

Why did the auctioneer stop and leave the room?

You might see the auctioneer pause proceedings, especially if bidding stalls.

This was usually to speak to the vendors to decide whether to declare the property is on the market or to pass it in.

I won, what now?

If you win the keys, you’ll be taken aside to sign documents. Keeping a clear head for this is important.

People can get quite emotional at this point, because it can be a rollercoaster ride at auction.

Once signed, the documents are legally binding — so it is critical to get these right.