Before you put your hand up

Bidding at auction is an art form. Get it right and you could walk away with the house you want.

Not everyone likes to bid at auction. But armed with knowledge of how the process works, and some tactics, it's easier.

But before you put your hand up, make sure you've done your homework and that your lawyer has checked the title, Land Information Memorandum (LIM) and auction agreement, and you've identified any building issues.

1. Beware the mind games. Everyone in the room has reasons to manipulate you subtly. They may want you to bid more, bid faster, or be psyched out from bidding. Go ready to bid and don't be put off.

2. Consider using a professional bidder. Sometimes it's best to get an expert to do the bidding for you. This could be an agent who acts on your behalf, or an experienced friend, or even a former agent, if you know one.

3. Be prepared to walk away. Know (a) how much the bank is willing to lend and (b) what you're really prepared to pay for this property. It can be very tempting to keep going when you think you may be one bid away from winning. Don't keep bidding if it puts you at risk of getting into financial hot water now or several years down the track.

4. Don't be the first to bid. If you can avoid it, let others start the bidding. Entering the bidding just as others are getting stressed could put them on the back foot.

5. Bid confidently. Don't um and ah. If you're confident, the other bidders are going to think you've got money to go much higher.

6. Don't look too keen. Look like you don't really care. If the auctioneer knows this is "the one" they may attempt to push you higher than you want to bid.

7. Don't be pressured by agents. Immediate past president of the Auckland Property Investors Association David Whitburn tells the story of one auction where he saw eight or nine real estate agents crowding around the leading bidder to coerce her into bidding higher and higher.

They do this by feeding "words of urgency" to the buyer to push the fear of missing out; words such as "Go another five, this property is amazing", "You'll kick yourself if you miss this", or "Do whatever it takes", says Whitburn.

Take someone with you who knows your limit and will stop you bidding if you get carried away. What's more, Whitburn has seen buyers accidentally bid themselves up as well, one going $100,000 over what they intended to pay.

8. Watch out for vendor bidding. The auctioneer can enter a bid on behalf of the vendor to start the bidding or keep it moving if the auction hasn't hit reserve. Find out more about that here: http://bit.do/vendorbid

9. Don't panic. Other buyers may be irrational. But do you want to be? Property is a significant purchase. If the price goes too high, you need to think with a clear head.

10. Finally, remember that sometimes the best bluffer wins. You may not have a single cent left to bid. But if you look like you do, your opposition might wither.