- Do your homework, find out as much as you can about the property.

- Request a Property Information Package. Do your "due diligence".

- Inspect the property. Take full advantage of the inspection times that are posted prior to
  the sale.

- Ask plenty of questions. Develop a confidence level in the property.

- Pre-qualify yourself with a lender. It's best to know what you can afford to pay before you
  bid.

- Plan your bid strategy. Determine your bid limit. Include the buyer's premium in your price.

- Register to bid. Receive your bid number.

- Bring the required deposit.

- Bid aggressively to your limit. You cannot buy at any price unless you bid.

Types of Auctions

Absolute Auction:

· The property is sold to the highest bidder, regardless of price.

· Since a sale is guaranteed, buyer excitement and participation are heightened.

· Generates maximum response from the market place, thereby being the only auction process
  to ensure attaining true market value.

· Many sellers, including financial institutions and government agencies, have used this method
  for years since an absolute auction offers the best performance results of all.

Minimum Bid Auction:

· The auctioneer will accept bids at or above a published minimum price. This minimum price is
  usually  stated in the brochure and advertisements and is announced at the auction.

· This method provides reduced risk for seller if the seller wants to set a minimum price. The
  sales price must be above a minimum acceptable level, which should be established using a
  good study of  comparable values and the current market.

· Buyers know they will be able to buy at or above the minimum bid, however, the seller may
  limit  response to only those buyers willing to pay the minimum bid price or more. Therefore
  the minimum  bid must be low enough to act as an inducement rather than a hindrance. Real
  estate professionals and investors see the minimum bid as an opportunity if the minimum
  reflects some reality to true market value.

Reserve Auction:

· With a reserve auction, if the high bid fails to reach the reserve, the high bid, in reality,
  becomes an offer that may be negotiated, not a sale.

· A reserve is not published, consequently the seller reserves the right to accept or reject the
  highest bid within a specified period of time. That time frame is usually anywhere from
  immediately up to 72 hours after the auction concludes.

· Sellers predetermine the price at which the property will be sold and are not obligated to
  confirm a sale other than at a price that is entirely acceptable to them.

· The main disadvantage of a reserve auction is that prospective buyers, especially investors
  and real estate professionals, usually will not invest the time and expense of performing an in
  depth due diligence because of the uncertainty of being able to buy the property, even if
  they are the highest bidder. In other words, they don't want to "waste their time". The level
  of excitement at this type of auction is much lower, and as a result, this process affects
  attaining true market value significantly.