Rekin: auction.. least recommended method of buying your first place
Apartment maybe not so bad/risky as a detached house but generally you need to do everything before the auction like pest/building inspections (which are not exactly cheap when u may end up with nothing anyway) and go over the contract with a conveyancer/lawyer *beforehand*. You need to know how much the place is worth and how much you are willing to buy it for and do not go over that amount. If you pay too much (auction or private sale) you will always regret it. You should do your homework, go to a number of auctions for similiar places so you know how much they are going for. Have someone go with you that is well experienced with these things. There is no cooling off period and you generally need to pay the deposit on the day (or within a couple of days, check the contract beforehand). So you will need your deposit ready to go.
You can actually put conditions on the contract, however you must do this before auction, and if you're not confident then it's likely the agent will talk in circles and talk you out of it, until you feel like you can't actually do that, what were you thinking?! Always remember it's up to the vendor tho not the agent. You can specify pest inspections etc but it's likely if there are other buyers they won't accept your conditions of sale anyway. They will always want (auction or priv sale) the best price with least conditions, most favourable contract for them and most convenient settlement date.
Also remember that the only thing they have to do is meet the contract terms. If you say 'hey will they fix that before they move out', they don't have to do anything if it's not specified in the contract. Sold as is..
And never go to settlement with them still in the house and asking if they can have a few more weeks blah blah, they'll rent from you for $XX for xx weeks. If you settle and they are still in the house, they're now your problem to get rid of and any damage they cause. It could literally get to the point where you need the sheriff to get rid of them for squatting. Never settle unless the house is empty.
Anyway thats something most ppl wouldn't mention to you but it does happen..
Crispyfries: yes thats underquoting, happens all the time to attract more buyers thinking they'll get a bargain
Rule of thumb: believe nothing an agent tells you no matter how genuine they seem. You need to play hardball and be willing to walk away at any time if they don't accept your offer.
I went through Rams for a while.. farkin.. one document, then another.. then another.. like farkin ask for them all at once u idiots! Took ages for nothing. Went through Bankwest and had no issues, approved me for way more than I needed. Only risk was if the valuation came in significantly less than what I offered, I would have been screwed and had to fork out that money myself.. but that doesn't happen much and it was still subject to finance so I could have gotten out of it...