Rule 2. Understand the ‘quoting’ lies

Experienced buyers know that agents under-quote the selling price by about 20 percent. So, if the agent says “Bidding to start from $300,000”, the price is likely to be somewhere around $360,000. If your maximum price is $320,000, be careful. You could spend money on inspections, get your heart set on buying the home and all to no avail.

If you cannot get a straight answer from an agent about the price, or if you are certain you are being misled, you can – as a last resort – ask the sellers about the price.

Unlike many agents, most sellers are not interested in deceiving you. They just want you to buy their home. They do not want you to be misled or to lose money.

You can write to the sellers at the home. If the home is vacant, you can write to them care of their lawyer. Ask the agent for a copy of the contract of sale. The owners’ details will be displayed. There is a sample letter for this purpose in the Appendix. If you receive no reply do not attend the auction.