BEFORE YOU MAKE AN OFFER
Each situation is unique and you must judge the market carefully. Some vendors withdraw their property if they cannot achieve a minimum price, others are under pressure to sell even at a loss. Where the owner is deceased and several persons named in a will may benefit from the sale, a faster sale and possibly a lesser offer may be readily acceptable. Keep several properties in mind before you make any offer and don't stop looking until a purchase has gone through.

THE ASKING PRICE
Always refer to the stated price as the Asking Price, as this is what it is. The relation between the Asking Price and the Value of the house will vary greatly, depending on the vendor, location and the market. The relation between the House Value and its Market Value will be different also. Houses have been known to sell at a fraction of their original asking price. The Desired Price in turn is set above the Reserve Price, below which the vendor will refuse to sell.

FINDING OUT MORE
Find out what you can about the vendor and the house:
Why are they selling? Where are they moving to? How long has the house been on sale? What level of interest has been shown? What offers have been made and when? Is the house vacated? The seller may have had a job transfer and may be under pressure to sell.
People will always talk so call to the local shop and neighbours and say that you are considering moving into the area; ask about bus services, schools and so on, and ask about the specific house, how long has it been on the market, etc., and you will gain realistic information.

PROPERTY SURVEY
If you intend looking closer now engage an architect or engineer to conduct a survey of the property. The surveyor will contact the auctioneer for the keys to gain access to the house.

VALID OFFERS
The auctioneer may tell you that an offer has been made on the property. The house may have been on sale for over a year with little interest shown, but the chances are within a few short weeks of your offer, you will be told that the auctioneer has an offer on the property, exceeding yours. First you should try to check its authenticity; you will have to use your instincts to guess if it's "for real". Offers on property should be in writing and on view to prospective buyers but this is not so because of vested interests. Ask the auctioneer directly if he can verify the validity of the offer made, when it was made, and was the offer made formally (through a solicitor). If the auctioneer dismisses this idea it would be wise to consider the bid to be fictitious. Whether the offer was valid or not, a sale may not ensue and the auctioneer may return to you days or weeks later with the question "Does your offer still stand?" Do not answer directly, you may decide at this point to repeat your offer or to make a reduced offer. Never be in a hurry and keep several properties in mind at all times.
The auctioneer is working on a commission basis. If you make a bid of say (£40,000) and the auctioneer says he has an offer of (£43,000) he is hoping you will offer (£44,000). On a commission of 2.1/2% he stands to make an additional (£100) on the extra (£4,000). That (£4,000) will cost you approx. (£12,000) in loan and interest repayments over the full term of the loan. His (£100) will cost you (£12,000) (not allowing for inflation), so don't raise your bid without serious consideration.

REVEALING AND/OR CONCEALING PERSONAL INFORMATION
The information the auctioneer has on your character, income, security, needs, desires, plans, hopes, etc., helps him to relate and deal with you in the best interest of his client, the vendor. The first question you will be asked is: "How much are you prepared to pay?" or "What sort of price range are we talking about?" To which you might reply "What is the length of a piece of string?" or "That depends on finding something of good value". He might put it more bluntly - "What's the maximum you've got to spend?" You are concerned with the product, while he is concerned with the price. The correct answer might be more specific: "Well I'm looking at two-bedroomed, centrally located properties in need of repair. What have you got?". What you tell the auctioneer may hinder you in achieving the most favourable price, or it may help you. If you have a Loan Approval Certificate you may wish to reveal it or keep it to yourself. If you are looking at other houses in the area or elsewhere you may or may not decide to reveal this fact. Don't become emotionally involved in one property, you are throwing away any opportunity for negotiation. If you have only one house in mind you are likely to end up paying over the top to secure it. Keep as cool and professional as you can and keep your own counsel. Never decide to buy this house or that house; decide instead to make an offer, keeping all your options open to the last. You are dealing with a skilled negotiator, your future financial health is not his concern. Be patient and move decisively when you do.

MAKING AN OFFER
Remind the selling agent of the house's defects, use your surveyor's report here. The auctioneer conveys your offer to the vendors who may play for time; here you could put a deadline on your offer - it remains valid for a period of 2 weeks, 1 month, whatever. This way you can get on with property hunting if the vendor is indecisive. In some cases the auctioneer, not the vendor, is holding out for a higher offer; if you suspect that your offer has not been conveyed to the vendors, inform your solicitor to put the offer in writing and see the matter through.

ACCEPTED OFFER
If your offer is accepted you must now either confirm or re-consider it. If you confirm you must place a holding deposit through your solicitor; the figure can be negotiable. Ensure that your deposit is Subject to Contract so that if there are delays, legal or procedural problems you will get your money back.
Your deposit confirms your interest in the property but does not protect you against higher bids by a latecomer buyer(s) - this is known as gazumping. There is no law at present to compensate you for such a setback; at the same time if you withdraw your bid you stand to lose your deposit.

THE AUCTIONEER'S ROLE
The auctioneer's job is less pleasant than most people think; he must cope with a stream of curiosity hunters - people not interested in buying but who take up his time. Even serious clients often have no clear notion of what they want and he finds himself explaining financial and procedural questions to people, who take their custom elsewhere at the last minute. The auctioneer is under pressure from the vendor to achieve a quick sale and a high price; at the same time the buyer is trying to achieve the lowest price, and he must remain on good terms with both vendor and buyer alike.

I.A.V.I., I.P.A.V.
Most auctioneers in this country belong to either the I.A.V.I. (the Irish Auctioneers and Valuers Institute) or the I.P.A.V. (the Institute of Professional Auctioneers and Livestock Salesmen). Both organisations have stringent entry requirements and also a strict code of behaviour. If an auctioneer misrepresents the facts about a house he is in breach of the code and risks his reputation and practice.

AUCTIONS
While most properties are for sale by "Private Treaty", certain properties are sold by Public Auction. These are usually unique or exclusive properties difficult to value. Certain properties may be sold by auction as a last resort or to achieve a quick sale. Members of the public view the property by appointment.br While your surveyor may report on its condition your solicitor may check on the Title, etc. The reason is that in rare cases the auction scenario can be used to "flog" a bad title, in that the contracts are signed by the purchaser there and then, and the purchaser is bound to go through with the purchase which can lead to all sorts of problems.

CEILING AND RESERVE PRICES
The vendor will have a confidential "reserve price", below which he will not sell the property. It is important that you have s strict top price or "ceiling figure" in your mind before bidding. The function of the auction is to let open competition drive up the sale price. Getting a "bargain" is unlikely unless the reserve price is low and the bidding poor.

ACCEPTED BID
Once the reserve price is reached the highest bid will be accepted. If your bid is accepted you will be required to sign the Contract of Sale there and then and to pay a Deposit, depending on the sale. You may need a Loan Approval Certificate from your lending agency to authenticate your bid.