Although the market started out on a high note at the beginning of last year, uncertainty over large numbers of auction withdrawals in the autumn swung the pendulum firmly in favour of private treaty sales. As the year progressed, buyers showed an increasing preference for properties with a firm asking price. Three factors affected last year's disappointing auction figures, according to Simon Ensor of Sherry FitzGerald - overoptimistic reserves, a drying-up of demand and large numbers of unsuitable properties being offered for auction.

"This year, we will be more selective in deciding which properties go for auction. It's not in the client's best interests to automatically choose the auction route because it is a more expensive way of selling. A house of character in a prime location is the ideal property to auction," he says.

Houses which "stuck" for some time were a feature of last autumn's market and some vendors had to drop their price by up to 10 per cent in order to sell. Expectations had been boosted by strong prices achieved early in the year when there were large numbers of buyers chasing a limited supply. A huge volume of houses came to the market later in the season, some with unrealistic reserves, says Simon Ensor.

Denis Beare of Lisney agrees that more owners will be advised to sell privately in 2001. "Houses in good commutable locations like Sandymount, Ranelagh or Blackrock will always be auctioned. However, where there are three or four houses selling in more mundane estates, buyers will prefer to negotiate by private treaty."

Auctions are a fairer way to buy and sell, insists Alva Gunne of Gunne Residential, who points out that keen competition for a private treaty property can lead to a mock auction. "People sometimes assume that if a house is for sale by private treaty they will be the only party interested in it. However, you can quickly get into a bidding situation, in which case an open auction is actually preferable.

"Either way you get into a bidding situation. At an auction you can see what's happening."

There are advantages and disadvantages with both systems. An auction sale is quick and relatively painless. With a three week campaign and four to six weeks' closing, a sale can be completed in less than three months. Many houses withdrawn at auction are sold within one week and most within a month, unless overpriced.

Private treaty campaigns cost less and tend to proceed at a more leisurely pace. Viewing is an ad hoc arrangement and normal family life need not be put on hold. Completion dates are usually by agreement, in contrast to auction sales, where failure to complete in the contracted time can incur interest at a punitive rate.

Gazumping - where a higher offer is accepted by a vendor after a sale is agreed but before contracts are exchanged - is one of the drawbacks of a private sale. . If a "Dutch auction" situation arises in a private sale - where two or more bidders compete against each other - some agents arrange a private auction to decide the final bid. Others resolve the impasse by going to tender. Here, buyers are generally obliged to decide what the property is worth to them.

Agents charge a negotiable 2 per cent for selling a house in the city and up to 3.5 per cent in rural areas, to compensate for distance travelled and lower prices. Advertising spend is responsible for most of the extra cost. Anything up to £3,000 can be splashed out on colour ads in national newspapers during a short auction campaign. Private treaty sales, on the other hand, budget around £500 for advertising.

Conveyancing is around one per cent of the purchase price. Hidden charges not always anticipated include a vacate fee of about £35 for an "unencumbered title" where there is a mortgage to be paid off.

Another £12 will be spent getting the vacate registered. Lending institutions also charge for collection of the deeds - up to £55 in some instances - and solicitors will bill a small amount for out-of-pocket expenses. Arranging a tax clearance certificate is another extra cost, although most solicitors roll this cost into the fee.

Survey costs should also be factored into any sale. This will be from £280 upwards depending on the house size. A solicitor will charge around £75 for a title search and in some cases a fee for attending the auction.

An auction contract is binding on both buyer and seller, so "buyer beware" is the motto for purchasers. By the day of an auction, serious bidders will have surveyed the house, checked its title, inspected the contract of sale and secured loan approval. They will have in their pocket a bank draft for 10 per cent of the purchase price, since vendors rarely accept cheques as a deposit.

Because contracts signed at auction are legally binding they seldom fall through. If the unthinkable happens and the cheque bounces, the buyer forfeits their deposit. This is true even if the vendor gets a higher price the second time around. The original buyer is also obliged to compensate for any shortfall in the resale and for the costs of the new transaction.

A more down-to-earth market is the general consensus among agents for the coming year. There will be fewer auctions, with realistic reserves that will ensure the bidders will at least be "at the races".