Could you bag a real bargain in the bidding hall? Land and planning expert Mike Dade looks at the pros and cons of this route to buying property and reveals what you need to know before you get started

There’s a certain mystique around property auctions. On the one hand they appear to offer the potential to snap up a house or plot of land for less than its true value. On the other, there’s the nagging fear of buying something that later turns out to be a money pit.

There’s also a sense that investors and developers tend to dominate property auctions, and that private individuals are likely to be at a disadvantage compared with the seasoned professionals that might be bidding on the same lot.

In practice, as a self builder you’re well-placed to buy successfully at auction – but it’s essential that you understand the process and potential pitfalls before you begin. A lot comes down to careful preparation – this is not at all about gung-ho bidding and speculation. By knowing the market in your area, researching thoroughly and taking professional advice where needed, you can sort the genuine plots from the problem properties. And with a little bit of luck in the auction room, you might well be able to snap up a genuinely good opportunity for a bargain price.

What gets sold at auction?

From conversion opportunities through to rundown bungalows and virgin plots, every kind of property can exchange hands at auction; and the dwelling or land can come onto the market for a wide variety of reasons. Increasingly, auctioneers promote their services as a quick and certain route to making a sale. This can appeal to mortgage lenders who want to sell off repossessions swiftly, but may also suit private vendors – for instance if they need the money to finance another purchase.