Depending on the position you hold on the ever-shifting Irish property ladder, there's a fair chance that you will never find yourself bidding on a property at auction.

Most would-be homebuyers will take some comfort from this situation, with the prospect of entering the scary confines of the auction rooms less than appealing for the uninitiated, particularly when all that money is at stake. For others, however, the auction house will represent a necessary evil, since it will be the only place where they can get their hands on the property of their dreams.

In residential terms, the only homes that tend to go for auction are those in the more expensive categories, with anything sold beneath, say €500,000, usually changing hands by private treaty.

This is the type of transaction with which most homebuyers will be familiar: it involves a bidding process than can last several weeks and will eventually culminate in the selection of a lucky winner who will then pay a booking deposit of some €3,000 to €5,000 to secure the deal. The balance of a 10 per cent deposit will follow some weeks later.

The bidding process in a private treaty is handled by the estate agent, with the various bidders involved never gaining exposure to the other parties who might be interested and thus never getting a chance to evaluate how serious they may be.

On the upside, however, all bids will be carefully considered, with those involved generally given lots of time to think about their next move before taking the plunge. Crucially, they will also be able to look at the house or apartment while the bidding is ongoing, thus allowing themselves to truly familiarise themselves with the place before deciding to raise their offer.

The auction process is very different indeed, with all those interested in bidding on the property in question required to do lots of homework before they can safely enter the sale house.

In most cases, the owners of a house being put up for auction will allow ample time for open viewings in advance of the sale date, so having sight of the actual bricks and mortar or garden will not be a problem. What might be more complicated, however, will be what lies beneath, both in terms of structure and legal title.

The very nature of an auction means that there is no going back after the bid has been accepted, so only those buyers who are very sure of their purchase should even think about getting involved. The fact that 10 per cent of the purchase price will be paid over as a non-refundable deposit on the auction day should concentrate the mind in this regard.

Reaching this state of confidence involves two key steps: the survey and the title search. The former will be undertaken by a professional surveyor at a cost of at least €200 (probably more), with the outlay entirely borne by the would-be buyer. The title will then need to be checked by the buyer's solicitor to prove that the seller actually has ownership of the property and has the right to put it on the market. This search will also tell the buyer what kind of land zoning applies to the area and inform them of any forthcoming developments nearby.

Once these two crucial tasks have been completed, it is time to brave the auction rooms. The main thing to remember at this stage is that you must have access to sufficient cash to cover a 10 per cent deposit in the event of your bid being accepted. You will also need to have organised loan approval from your bank or building society so that the remaining 90 per cent can eventually be transferred smoothly too.

Ms Iris Keating, associate director of HOK Residential, says this is where the real advantage of auctions kicks in, with sales of this type tending to proceed faster than their private-treaty cousins. "If the property sells under the hammer then it can be a quicker method of sale as the closing is usually four to six weeks after the auction date unless either party specifies otherwise," she says, adding that private treaty negotiations can end up being quite protracted.

She also points out, however, that enthusiastic clients need to proceed cautiously when making bids at an auction. "The disadvantage is that the buyer could find they pay more than they would have otherwise if they get caught up in a heated bidding situation."