Buying at auction doesn’t necessarily mean bagging a bargain. But it is speedy, and can reduce the protracted nail-biting to manageable periods.

That said, great deals can be made at auctions, some say up to 40% less than had the property sold on the open market. In reality though the savings will be much less, although usually well worth having if you understand the risks and are willing to swap nail-biting weeks for white-knuckle bidding.

The number of ordinary people buying residential property has been rising steadily. Once the domain of investors and property developers, the auction rooms are now populated with a solid gaggle of people looking for a property to live in themselves.

Mortgage lenders often put up their repossessed properties for sale, usually at deliberately reduced reserve prices to ensure they sell quickly. Local authorities and housing associations use auctions for similar reasons. Sadly, properties are often bought by local authorities to make way for new roads or development schemes and sold later at auction because the projects have not materialised.

These people don't put the same value on a property as you or I would, they are more concerned with moving the property quickly than they are about the market value. They are often not skilled or motivated enough to investigate the individual potential of run-down properties and know that the auction price obtained will be set reasonably fairly by those that are - the bidders. Of course, your bog-standard three bedroom semi will be easier to value and sell and so you are unlikely to buy one of these for a good price at auction. Much more likely will be the quirky house or rundown property, perhaps that has been left as probate.

The plus side to all this is that you will be getting a challenge. If you are looking for something to renovate then an auction is the place to buy.

The process is very quick, which means you have to get your skates on. A dummy run is definitely advised, to watch and familiarise yourself with the process. Don't just do the auction side of things though, think about the whole process too. It's all a rush and will need your best attention, so practice with the timing and processes will definitely help, even though you won't actually get a survey and mortgage for the dummy run.

Just three or four weeks before the sale, the auctioneer publishes a catalogue and a schedule of viewing times. In most cases you are unlikely to find out about the property before the catalogue is released, so from this point on, you have little time to hang around.

Viewing often takes place alongside a number of other people, as the auctioneer will not want his staff at the beck and call of casual visitors. Don't be deterred by this. If you go to a number of auctions to 'get the feel' of them, you stand a good chance of seeing the same people over again. Some of them, like you, are looking for something that just suits their pocket and needs. Likely as not they won't have the same criteria as you. Also there will be the 'professionals' who will likely not stretch themselves as far as you might because they have overheads and will need to turn the property into a sale or rental quickly.

Bidding is undertaken in the auctioneer's sale room, or by phone or even on the internet, so you don't need to go to the auction room. You don't even have to bid directly, because you can make the auctioneer your proxy by telling him how much you are willing to pay maximum and he will bid for you. You may even be able to make a successful offer before the auction. It'll have to be higher than the guide price to stand any chance, but if the auctioneer and the estate agent agree there is a chance the bid won't be reached in auction, the offer may be passed to the vendor and agreed before the sale.

But there is no substitute for going to the auction in person, both as a 'trial run' and for real. In the room you can sense the mood and gauge other bidders. It's an experience not to be missed, but keep to your limit, don't be swept up by the enthusiasm of the day and bid above your budget. Just because someone else is bidding higher doesn't mean the property has suddenly gone up in value.

Auction day tends to be quite frenetic. There are often hundreds of properties for sale, and each property may only take around two to three minutes to sell so it’s important to keep track of the lots. If you are successful you become legally obliged to buy the property the minute the hammer comes down. At this point you must pay a ten per cent deposit.

As soon as your bid is accepted, the sale becomes legally binding – it’s too late to change your mind so you need to be sure you’ve made the right preparations.

One downside of buying at auction is that you'll need to have got your valuation/survey, solicitor and mortgage sorted beforehand. And even though you've paid a few hundred pounds for these, there's no guarantee you'll be the successful bidder.

The situation may be a little better when home information packs become the norm, but don't hold your breath.

Some auction houses offer legal packs already which can speed up the process. Often only costing a few pounds, the pack includes such details as the property's Land Registry entries and local searches.

But long before this it pays to be prepared. One of the first steps is to find out how much you can afford to spend. Your mortgage advisor could help here or perhaps the best place to go is your bank because they have a good idea of your financial position.

You should not be relying upon the sale of your property for the money unless contracts have been exchanged. A bridging loan may be able to be arranged but these are often very expensive, particularly if something goes wrong and you need it for some time.

If you are the successful bidder, you will be asked to pay ten percent on the day of the auction so make sure you have your money in an instant access account.

If you think the property is right for you then you'll need to work fast. See you solicitor straight away and make him aware the property is for sale at auction. The contract for the property will be in the auction catalogue, and any special considerations relating to the particular property you want will be available from the auction house. Your solicitor needs to check that everything is in order so on the day of the sale, if your bid is successful, you can exchange contracts.

Get a survey done before the auction too, and prepare to arrange the mortgage. In every case you will need to advise people of the urgency because of the auction deadline, ask them to get things to you a week before the sale. If you make the surveyors aware of the fact that you are going to have to raise a mortgage to buy the property they will be able to carry out a valuation for the lender at the same time.

After the auction there are then 28 days to completion. You'll need to make a mortgage application quickly and so it is important when you are speaking to an adviser you make them aware of this deadline.

Your adviser should also be able to advise which lenders are better for turning round applications quickly and which one have a reputation for being slow.

If you’re organised and choose a speedy lender, you could move into your new home just seven weeks after you first set your eyes on it.

You can approach estate agents of course, but in most cases they will be more interested in seeing if they can sell you a property (either on their books or potentially) so it may seem a little like a waste of time. However you may come upon the right one at the right time.

Other ways:

• Look out for estate agent 'for sale at auction' boards.
• Check out the local and national newspapers. Some magazines have special sections devoted to auctions.
• Auction houses may be willing to put you on their circulation list for property auctions. There are a number who deal specifically with property on a regular basis.
• The Royal Institution of Chartered Surveyors has a list of auction houses at www.rics.org/property_auctions/auction and the Essential Information Group www.eigroup.co.uk has a searchable database of property auctions.

• Ask the auctioneer if he has any information about the property he can let you have as soon as you are interested. This may save you valuable time (and money) searching facts out.
• Always set a personal price limit on the property long before the auction. On the day, don't get carried away and exceed it.
• Discuss with your surveyor the upper limit of the price you should pay for the property.
• Remember to take into account advice from your lender and others about fees, stamp duty, repairs needed etc. when making up your budget and working out your personal price limit.
• Don't buy a property before you've sold yours i.e. before the completion has happened - assuming you're relying on that sale to buy at the auction.
• Don't buy a property without having had a survey done. Not only will you limit the potential nightmare of building problems but you'll also have a basis on which to bid, as well as knowing your mortgage limit and how much of a deposit you'll need.
• Time is precious. On average you've only got three or four weeks to play with. So you need to know what's coming on at auction as soon as possible. And to get a head start over your competition you need to be one of the first to get the catalogue - ie as it's printed and released - just like the trade professionals.

Buying a property at auction may present a challenge and certainly you should be prepared to do plenty of hard work organising and chivvying before the auction. Don't skimp time on studying the property however. Make sure you look over it personally and in detail. Structurally your surveyor may inform you of things and potential costs that need fixing, but you own eyes will tell you far more about the potential for the property and the garden, whether you will like to live there, the surroundings and amenities. And you'll have to do this all quickly, which may, if you let it, cloud your judgement.

But the best thing about buying at auction is precisely the speed and certainty. Once the auctioneer has slammed down his gavel to indicate the sale has been made, the successful buyer will own the keys to the property in just 28 days time.