A glance through the daytime television schedules reveals that Britain is in the grip of auction fever, with programmes such as Bargain Hunt, Cash In the Attic and Flog It highlighting our love of a bargain.

This love affair shows no signs of abating, with ITV1 set to launch a new show, called Property Auction, later this year. But for those hoping to emulate the likes of David Dickinson and pick up a house 'as cheap as chips', the auction room can be a nerve-wracking place, so Halifax offers a guide to buying a property at auction.
Although attending an auction can be a daunting experience, the process is relatively simple provided you have done your homework.

Buying at auction accounts for an estimated five per cent and rising of all property transactions, according to the Royal Institute of Chartered Surveyors (RICS).
Recent figures from online property database Focus show the value of residential properties sold at auction during the first six months of 2003 rose 12 per cent to £612 million, helped by a 19.5 per cent increase in the average value of residential lots to £113,599.

There are a number of advantages to buying at auction, the first of which is that properties are usually offered at a competitive reserve price. This is the lowest price the seller will accept, but will not be divulged to bidders.

With this is mind you must settle on the maximum price you are willing and able to pay, and make sure you don't exceed this in the heat of the battle. Guide prices will be made public, but these can change in the run-up to the auction so you should contact the auctioneer to check. You should also obtain a catalogue to view the description of the property, details on how to view and general conditions of the sale.

The bidding process is designed to be a fair and open competition between two or more hopeful purchasers, and once the hammer comes down neither the seller nor buyer can withdraw.

This means that all the necessary checks need to have been made on your behalf ahead of the auction. You should instruct a conveyancer to check the title to the property in advance and obtain all the necessary searches.

It may be that these will be provided by the seller, in which case you are likely to have to pay the seller the cost of the searches if you agree to buy. Copies of the legal packs relating to each property will usually be available from the auctioneer prior to the sale. If not, your conveyancer will have to obtain all necessary searches before the auction.

As you will be contractually bound to buy if your bid is successful, you should also ask your conveyancer to advise you on the conditions of the sale.
One popular misconception is that all properties sold at auction are bought with cash, but this is not necessarily true, as it is possible to fund the purchase with a mortgage. However, before committing to a purchase, you should make sure you have a mortgage in place, which means you will have to apply for your mortgage and have received your mortgage offer before the auction day.

This means that the property will need to be valued for the purposes of the mortgage. Also, you are advised to ensure a survey and property valuation are completed prior to placing a bid in any event. This will safeguard against bidding for a property with structural problems and give you a clear idea of what work may need to be done on the property.

If your bid is successful you will be committed to the purchase and will usually need to put down a ten per cent deposit on the day, subject to a minimum deposit. Usually the outstanding amount must be paid within 28 days although completion dates can vary from 14 to 28 days. Failure to do so will forfeit your deposit and lose the purchase, so check the special conditions relating to each lot.

Sometimes a property will not meet its reserve price and will be withdrawn from the auction. If this happens it may be worth speaking to the auctioneer to see if you can agree on a price with the vendor.

Craig Donaldson, head of mortgage products at Halifax, says: "Buying a house at auction is not just the reserve of cash rich property developers. If it is an option you are considering you should do your homework first and obtain a lender's mortgage offer to confirm that they will lend to you and against the property."