MANY people considering buying or selling a property may be unaware of the benefits of sale by auction.

David Tuffin, chairman of the South East region of the Royal Institution of Chartered Surveyors, looks at how best to buy property at auction.

For the buyer, it is a transparent process - the sale is binding at the fall of the gavel and the completion date is fixed in advance.

For sellers, the amount of competition at sales often means that auctions achieve higher prices than private sales. Before auction:

1. Obtain a copy of the auction catalogue from the auctioneers. This may have information relating to the property as part of a “home buyers package.”

2. After looking round the property yourself, consult a chartered surveyor and if you wish to proceed, instruct them to carry out an RICS Homebuyers report. This will advise on the condition and value of the property and may also suggest certain inquiries you should make.

3. Instruct your solicitor to inspect local and national searches and the title deeds for any onerous covenants or restrictions.

4. Ask the auctioneer at the outset if they have information relating to the property since this could reduce your costs considerably. Otherwise, you should instruct your solicitor or chartered surveyor to make inquiries at relevant local authorities regarding planning, building regulations and highways.

5. Discuss with your chartered surveyor the upper limit of the price you should pay for the property.

6. Remember to take into account the cost of advice from the source lending you money well as the fees for obtaining the professional advice outlined above. Also stamp duty, if applicable, and the cost of work which may be needed after purchase must be taken into account.

7. Check what methods of payment the auctioneer will accept for the property. If you are the successful purchaser, you will usually be required to pay a 10 per cent deposit subject to a minimum specified in the catalogue immediately after the sale and should, therefore, have sufficient funds to cover this. It may be necessary, for example, to make arrangements for a banker’s draft prior to the sale.