When browsing property listings, you may have come across the term “cash buyers only.” This phrase can be confusing if you’ve not seen it before. In this blog, we explore what “cash buyers only” means, why some properties are listed this way, why sellers might prefer cash buyers, and the pros and cons for both buyers and sellers. We’ll also delve into how house buying companies operate and the circumstances under which cash house buyers work best.

01 | Understanding “Cash Buyers Only”

“Cash buyers only” indicates that the seller is only interested in offers from buyers who can pay the entire purchase price upfront. This is without needing a mortgage or loan. This means the buyer must have the necessary funds available to complete the transaction without relying on external financing such as a mortgage.

02 | Who Qualifies as a Cash Buyer?

A cash buyer is someone who can purchase a property outright using their own funds. This typically includes:

• Individuals who have saved up enough money to buy a property without borrowing.
• Investors looking to purchase properties for cash.
• House buying companies that buy properties with cash.

03 | Why Are Some Properties Listed as Cash Buyers Only?

There are several reasons why a property might be listed as “cash buyers only”:

1. Property Condition
   Properties in poor condition may not qualify for traditional financing. Lenders often have strict criteria regarding the condition of the property they are willing to finance. If a home needs significant repairs or has structural issues, securing a mortgage can be difficult or impossible. Sellers of such properties often prefer cash buyers who can overlook these issues and proceed without financing constraints. The idea is that the cash buyer is willing to take on these responsibilities and to resolve them.

2. Home Repossession or Short Sale Situations
   In home repossession or short sale situations, time is often of the essence. Sellers and lenders involved in these scenarios may prefer cash buyers because they can complete on a sale quickly, reducing the risk of the deal falling through due to financing delays.

3. Inherited Properties
   Heirs who inherit a property may wish to sell quickly to settle estates or divide the proceeds among beneficiaries. In these cases, selling to a cash house buyer can expedite the process.

4. Seller’s Financial Situation
   Sellers facing financial difficulties, such as an impending repossession or needing to settle debts quickly, may list their properties for ‘cash buyers only’ to ensure a faster transaction.

04 | Why Do Sellers Prefer Cash Buyers?

There are several reasons why sellers might prefer cash buyers:

1. Faster Transactions
   Cash transactions can typically be completed much quicker than those involving mortgages. Without the need for mortgage approval, which can take weeks or even months, the house sale process is generally faster. This quicker speed can be particularly advantageous for sellers who need to complete a sale quickly.

2. Reduced Risk of Financing Issues
   When a buyer relies on a mortgage, there is always a risk that the loan application might be denied, which can derail the entire sale. Cash buyers eliminate this risk, providing greater certainty that the transaction will be completed smoothly.

4. Fewer Contingencies
   Cash home buyers typically come with fewer contingencies, meaning fewer conditions that need to be met for the sale to proceed. For instance, cash buyers are less likely to require a detailed valuation and survey, which can sometimes result in the deal falling through if the property doesn’t value for the agreed-upon price.
5. Avoiding Property Condition Constraints
   Some properties may be ineligible for certain types of financing due to their condition. Cash buyers can often bypass these constraints, making it easier for sellers of fixer-uppers or distressed properties to find a buyer.

05 | How House Buying Companies Fit In

House buying companies, also known as cash home buyers, play a significant role in the cash buyer market. These companies specialise in buying and selling houses rapidly and with cash, often targeting homeowners who need to sell fast.

How They Work

1. Initial Contact and Offer Homeowners contact the house buying company, providing details about their property. The company then evaluates the property, often using online tools and data analysis, to determine its market value.
2. Property Evaluation A representative from the company may visit the property to assess its condition. Based on this evaluation and market conditions, the company makes a cash offer, usually within just 24-48 hours.
3. Acceptance and Completion If the homeowner accepts the offer, the company handles most of the paperwork and can complete the sale in as little as a week. Alternatively, the home buying company will work to the homeowner’s preferred timeline. This quick turnaround is possible because there is no need for mortgage approval or extensive contingencies.

06 | Advantages of Selling to House Buying Companies

• Speed: Cash house buying companies can complete quickly, sometimes providing cash in hand in just a matter of days.
• Convenience: They handle most of the paperwork and often buy properties in “as-is” condition, meaning the seller doesn’t need to make any repairs.
• Certainty: The risk of the deal falling through is significantly lower compared to traditional sales involving external finance such as a mortgage.

07 | Pros and Cons for Cash Buyers

While buying a property with cash has its advantages, there are also some potential drawbacks. Here we explore the pros and cons for cash property buyers.

Pros

1. Stronger Negotiating Position Cash buyers are often in a stronger position to negotiate a lower purchase price since they provide the seller with a faster and more certain sale.
2. No Mortgage Payments Without a mortgage, cash buyers avoid monthly loan payments and the interest that accrues over the life of a loan. This can result in significant savings over time.
3. Faster Completion Process Cash house sales typically complete faster than those involving financing, allowing buyers to move in or rent out the property more quickly.
4. No Risk of Repossession Since there is no mortgage, there is no risk of repossession due to missed mortgage payments.

Cons

1. Tying Up Capital Purchasing a property with cash ties up a significant amount of capital that could be used for other investments. This can reduce liquidity and limit the buyer’s ability to diversify their investment portfolio.
2. Lost Leverage Mortgages allow buyers to leverage their capital, potentially enabling them to buy a more expensive property or multiple properties. Paying with cash eliminates this leverage.
3. Potential for Lower Returns Property investments can offer substantial returns, but they are not guaranteed. If property values do not appreciate as expected, cash buyers may see lower returns compared to other investment opportunities.
4. Less Protection Mortgages come with certain legal protections for buyers. Without a mortgage, cash buyers may have less recourse in the event of a dispute with the seller.

08 | Pros and Cons for Sellers

Selling to a cash buyer can be advantageous, but there are also potential downsides to consider. Here are the pros and cons for sellers:

Pros

1. Quick Sale Cash transactions can complete in a matter of days, providing sellers with a quick resolution and rapid access to funds.
2. Fewer Complications Without the need for mortgage approval, there are fewer potential complications that could delay or derail the sale.
3. Greater Certainty Cash offers often come with fewer contingencies, reducing the risk of the sale falling through at the last minute.
4. Attractive to Investors Properties that may not qualify for traditional financing due to their condition can still attract cash buyers, making it easier to sell distressed or fixer-upper properties.

Cons

1. Potentially Lower Offers Cash buyers often expect a discount in exchange for the convenience and certainty they provide. This can result in lower offers compared to buyers who need financing.
2. Limited Buyer Pool By specifying “cash buyers only,” sellers may limit their pool of potential buyers, potentially prolonging the time it takes to find a suitable buyer.
3. Missed Opportunity for Higher Offers In a competitive market, buyers who need financing might offer more to secure the property. By excluding these buyers, sellers might miss out on higher offers.

09 | When Cash House Buyers Work Best

Cash house buyers are particularly beneficial under certain circumstances:

1. Urgent Sale Needs
   When homeowners need to sell quickly due to financial distress, relocation, or other urgent reasons, cash buyers can provide a swift and hassle-free solution.

2. Distressed Properties
   For homes that require significant repairs or are in poor condition, cash buyers can bypass the need for financing contingencies that would typically require the property to be in good shape.

4. Inheritance Situations
   Heirs looking to sell inherited properties quickly and divide proceeds may find cash buyers to be the most efficient option.
5. Avoiding Repossession
   Homeowners facing repossession can sell to cash buyers to avoid the long-term impact of foreclosure on their credit and financial future.

10 | Conclusion

Understanding what “cash buyers only” means is essential for both buyers and sellers of properties. For sellers, cash buyers offer the promise of a quicker, more certain sale with fewer contingencies. For buyers, paying with cash can provide a stronger negotiating position and eliminate mortgage-related costs, though this would tie up significant capital.

Whether you’re looking to buy or sell a property, weighing the pros and cons of cash transactions can help you make more informed decisions. House buying companies play a crucial role in this market, offering a fast, convenient solution for sellers needing a quick sale.

Has this article been helpful? Let us know by leaving a short comment below.

When considering selling your house to a house buying company, one of the most important questions is how much below market value these companies typically offer. Here’s a comprehensive breakdown of what you need to know:

01 | What is a House Buying Company?

House buying companies are businesses that purchase properties quickly, often completing transactions in just a matter of weeks. They are popular among sellers needing to raise cash fast or looking to avoid the lengthy traditional selling process using estate agents.

02 | How Much Below Market Value Do They Offer?

On average, house buying companies offer between 75% to 85% of the full market value of a property. This discount accounts for the speed, convenience, and certainty they provide in the selling process.

03 | Why Do They Offer Less?

1. Quick Sale: Homebuying companies can complete a sale in as little as 7 days, providing you with almost immediate funds. However, often they are only too happy to work to your own timeline.
2. No Fees: As a seller, it’s possible to avoid estate agent fees, legal costs, and often, repair expenses. This means you could sell your house ‘as is’.
3. Certainty: There’s far less risk of your house sale falling through, which is a common issue in traditional sales.

04 | What Factors Influence the Offer?

1. Condition of the Property: Better-maintained homes may get closer to 85% of full market value, while those needing significant repairs will receive lower offers.
2. Location: Properties in high-demand areas will attract higher offers compared to those in less desirable locations. This is because the home buying firm has more conviction in that they should be able to re-sell or rent out your property quicker.
3. Market Conditions: Current housing market trends can influence how much below market value a company will offer you. For example, a slow housing market will often mean house buyers will negotiate harder. This is to help ensure there is sufficient profit margin in the property should the housing market weaken even further.

05 | Pros of Selling to House Buying Companies

1. Speed: Transactions can be completed in as little as 7 days, making selling to a cash property buyer the ideal option if you simply need to sell quickly.
2. Certainty: With guaranteed offers, you’re less likely to face the uncertainty of your sale falling through, which is a common problem in more traditional sales.
3. No Hidden Costs: Often you can avoid estate agent fees and legal costs as professional home buyers pay these for you.
4. Convenience: The process is straightforward and should be hassle-free with your home buying company handling much of the paperwork and logistics for you.

06 | Cons of Selling to House Buying Companies

1. Lower Offers: The most significant downside in selling to a property buying company is the reduced price you will receive. Offers will typically be 15% to 25% below market value.
2. Lack of Competition: Unlike the open market, there’s no competitive bidding, which might drive up your selling price in a traditional estate agents’ sale.
3. Potential Scams: The industry has seen some unscrupulous companies over the years. And so, it’s crucial to research and pick a reputable buyer for your house.
4. Loss of Emotional Value: If your property has sentimental value, selling at a lower price might be emotionally challenging.

07 | How to Choose a Reputable House Buying Company

1. Research: Look for reviews and testimonials from previous clients. You can find these either on the homebuyer’s website or by looking at Google and other sites such as Trustpilot.
2. Accreditations: Check if the company is a member of professional bodies such as The Property Ombudsman or the National Association of Property Buyers.
3. Transparency: Ensure the company is transparent about its valuation process and any potential fees. They should be able to demonstrate clearly how this all works.
4. No Pressure: A reputable company won’t pressure you into making a quick decision. Instead, they should offer guidance in helping you to reach a decision on whether a cash house sale is appropriate for your circumstances.

08 | Alternative Options

1. Estate Agents: Selling through an estate agent might take longer and incur fees but could result in a higher sale price for you.
2. Auction: Property auctions can be a middle ground, offering a quicker sale than estate agents but potentially higher prices than house buying companies.
3. Private Sale: Selling privately can save on agent fees but requires more effort and comes with its own risks and uncertainties. For example, you should expect to have to carry out all viewings and may even have to negotiate with buyers yourself.

09 | Market Value vs. Speed: A Personal Decision

The decision to sell to a house buying company versus other methods largely depends on your individual circumstances. If speed and certainty are paramount, accepting a lower offer might be justified. Conversely, if maximizing the sale price is critical, exploring other avenues might be worthwhile.

Case Studies

To provide a deeper understanding, let’s consider a few case studies of sellers who sold their homes to house buying companies:

Case Study 1: Urgent Relocation Jane needed to relocate for a new job opportunity within a month. She chose to sell her house to a buying company, receiving 80% of the market value. The quick sale allowed her to move without the stress of an ongoing property sale.

Case Study 2: Avoiding Repossession Mark faced imminent repossession due to financial difficulties. By selling to a house buying company, he avoided losing his home to the bank and settled his debts. Although he sold at 75% of market value, the certainty and speed were crucial for his situation.

Case Study 3: Inherited Property Sarah inherited a property that required extensive repairs. Lacking the funds and time for renovations, she sold it to a house buying company at 78% of market value. The hassle-free process and avoidance of repair costs made it a favourable option.

10 | Tips for Sellers

1. Get Multiple Quotes: Don’t settle for the first offer you receive. Seek quotes from several property buying companies to ensure a fair deal is reached.
2. Understand the Process: Familiarize yourself with the buying process and ask questions to clarify any doubts you may have.
3. Check the Contract: Ensure you fully understand the terms and conditions before signing any agreement. Be wary of any companies that buy houses who insist on you signing a ‘lock-in’ agreement preventing you from selling your property for a long period of time.

11 | Conclusion

House buying companies offer a convenient solution if you need a fast and certain sale, typically at 75% to 85% of the market value. While a lower offer might seem unfavourable, the speed, convenience, and certainty this could offer may outweigh the financial trade-off for you. Thorough research and understanding of both the pros and cons are essential in making an informed decision that aligns with your unique circumstances.

By considering all aspects and evaluating your priorities, you can determine whether selling to a house buying company is the right choice for you.

Has this article been helpful? Let us know by leaving a short comment below.

12 | Frequently asked questions

The 2026 Cash Offer Breakdown

Speed, Fees & Condition

Safety & Decisions

With the rise of the internet, the Modern Method of Auction (MMoA) is becoming an increasingly popular route to buy and sell property.

Often described as eBay, but for houses, the modern method works very similarly traditional property auctions, with properties listed online. But with the very distinctive difference that bidding takes place over an extended period to drive the very best price possible for a property.

The Modern Method of Auction offers several key advantages over both estate agent sales and traditional auctions. However, it does also have its pitfalls.

In this guide, we explain how MMoA differs from traditional auctions, providing a step-by-step explanation of the steps behind it. We look at what kinds of property it is best suited to and examine the main pros and cons that this method of buying and selling property offers.

01 | How does the Modern Method of Auction compare to a traditional property auction?

In a traditional property auction, properties are sold through a public bidding process, where potential buyers compete to purchase by raising their hand to offer increasingly high bids on a property.

Ultimately, the auction ends when no one is willing to offer more than (or to outbid) the highest bidder. When this happens, the highest bidder then pays a deposit and is legally obligated to buy the property. This fall of the auctioneer’s hammer (or gavel) effectively marks the legal exchange of contracts. After this point, either party can take the other to court for failing to complete the transaction.

When selling properties at auction, a Guide Price and Reserve Price are set in agreement with the seller. The guide price is what the auctioneer expects the property to sell for, while the starting price is what they will start the bidding off at. Reserve prices are set by the person selling the property and will be the minimum they are willing to accept for it. If bidding fails to reach the reserve price, the property remains unsold.

Traditional auctions typically take place at auction houses on prearranged auction days. Numerous properties will be sold on a single auction day, with the auction house promoting them in its catalogue beforehand. Since the Covid-19 pandemic, most traditional property auctions have featured an online live stream in addition to their physical event. This means that buyers can place bids from anywhere in the world without attending the traditional auction in person.

The Modern Method of Auction holds several key differences from a traditional property auction.

1. While people still make offers to buy the property, known as bids, the process of bidding takes place over a set period, typically a month, rather than in a few minutes. Marketing continues throughout this entire period, with properties being sold via the MMoA route normally being listed on all the largest property portals. This takes place throughout the process, and often also directly marketed by a local estate agent.
2. Auctions using the modern method take place entirely online using technology. As this is the case, bidders can make use of tools such as automatic, incremental, and maximum bids.
3. Modern method auctions do not operate in the same way that traditional property auctions do. When a modern method auction finishes, the highest bidder is obligated to pay a non-refundable reservation fee, and negotiations on purchasing the property begin. This differs from a traditional auction, where the fall of the auctioneer’s gavel represents the buyer accepting the contract of sale.
4. Modern method auctions offer more flexibility in completion timelines. While traditional auctions require the buyer to have their funds ready within a month, the modern method allows more time to raise the funds. This is typically two months, enabling buyers to make use of mortgage finance. This means that selling a property via the modern method opens up a property to a much larger pool of buyers who are looking to buy with standard mortgage products rather than specialist finance such as short-term bridging loans.

02 | How does the Modern Method of Auction work?

In this section, we look at how the MMoA works step by step, following a single property through a ten-step process.

The MMoA starts when you, the homeowner, decide to sell your property through the modern method of auction and approach an auction house.

• Step 1: Property Appraisal:
  The first step in selling your property using the modern method is a ‘desktop appraisal’ or valuation from the auction house. Nowadays, this can often be completed without the auction house representative even visiting your property, using the vast amount of information available on the internet. Once the appraisal is complete, the auction house will provide you with a guide price or estimate as to how much your property will sell for and ask if you want to proceed with the sale. At this point, the most important thing to consider is your Reserve Price. You should take time to reflect on what this should be remembering this is the least you are prepared to sell your property for. Set this too high and you risk your property not selling and wasting a good deal of time until the next auction comes around.
• Step 2: Agreement to sell:
  If you’re convinced that selling through MMoA is right for you, the auction house will guide you through a process called onboarding. This involves you signing the auctioneer’s agreement, a document like an estate agent’s contract that outlines the terms by which the auction house will carry out the sale of your property. This contract details any auctioneer’s fees or charges, the reserve price, the duration of the auction, the sale procedure, and what will happen if your property fails to meet the reserve price.
• Step 3: Filling in the legal pack:
  At this point, you’ll be asked to compile documents for a legal pack relating to your property. This normally contains a valuation report, floor plan, EPC certificate, conveyancing searches, details of the property’s fittings and contents, Land Registry documents, a survey from the Royal Institute of Chartered Surveyors, and the terms and conditions for the auction.
• Step 4: Preparing the Property Listing:
  Once you have gathered the documents for your legal pack, it’s time to prepare your house for the market and organise an online listing. You should prepare your property taking particular to tidy gardens, fix minor issues, take photographs, and write descriptions. It’s critical to make sure first impressions are good, as they make the biggest impact on potential buyers.
• Step 5: Going Live:
  After the listing is prepared, it’s time for your property to go live. Your property will be advertised across all the major property portals including Rightmove, Zoopla, Prime Location and the auction house’s own website. The auction house will then start contacting any buyers they have in their books who might be interested in your property. If someone expresses interest in your property, the MMoA company will help them arrange a viewing.
• Step 6: Viewings:
  If a potential buyer likes what they see online, they will want to come to view your property and look at it in person. Some auction houses have the auctioneer conduct these viewings, while others use a professional known as a viewing assistant. Another option, which can sometimes help you save money, is for you to conduct viewings yourself, although most auction houses do not expect you to do this.
• Step 7: Bids:
  If a potential buyer likes what they see during their viewing and after reading through the legal pack, they may place a bid. Expect a trickle of lower bids to start with, with the numbers increasing as the auction deadline approaches. If the bidding exceeds the reserve price, your property auction is a success, and your home is practically guaranteed to sell.
• Step 8: The Auction Deadline:
  Provided bidding has exceeded the Reserve Price once the auction reaches its deadline, the highest bidder wins. They will pay a non-refundable reservation fee (typically around 5% of your property’s selling price) and have their solicitor begin the paperwork to buy your property. Note that this is not the same as an exchange of contracts, which happens later, during the agreed-upon completion period, and is not legally binding. While the non-legally binding nature of this agreement might seem worrying, the reservation fee means very few people drop out of modern method auctions.
• Step 9: The completion period:
  The completion period is the term used for the time after the auction but before the transaction is completed. During this time, the winning bidder and your solicitors will work out the details of the transaction. The length of the period can vary. While typically this is set at 4 weeks long, if the buyer needs time to secure a mortgage, it can be extended to 8 weeks. This is in stark contrast to the traditional property auction route where contracts are exchanged on the fall of the auctioneer’s hammer and the buyer must complete their purchase typically in just 28 days. At the end of the completion period, the buyer’s solicitor will transfer the payment to your solicitor who will then pay off any mortgage on the property, take their fees, and transfer the remaining funds to you.
• Step 10: Moving out:
  Once your property sale has been completed and the funds are in your possession you should immediately remove any remaining possessions from the property and pass the keys on to the new owner. They will then take possession of the property and their conveyancer will send the details of the transaction and the signed transfer deed to the Land Registry, who will then update their records to reflect the new ownership. You should then immediately update all utility suppliers of a change in ownership.

03 | What kind of properties suit the Modern Method of Auction?

Traditional auctions have a little bit of a reputation for selling run-down, less immediately desirable properties than estate agents. This often means properties in repossession, un-mortgageable properties. This includes those with structural issues or of non-standard construction types such as concrete builds. They can also include development opportunities with sellers looking to sell parcels of land with (or without) planning permission.

Modern method auctions do not suffer so much from this and instead often feature conventional family homes in good condition. And so, the MMoA route has become more mainstream for both homebuyers and sellers in recent years as acceptance has grown.

The main reason for the modern method of auction having grown in popularity is the longer completion period that is now available for everyday buyers using standard mortgages. As most people looking for more conventional residential properties will be buying using a mortgage, this makes the modern method of auction more suitable for selling conventional homes. This is because it grants access to a far larger pool of buyers than the traditional method.

Another type of property the modern method suits are unique homes which are hard to value. For properties like converted commercial buildings or old listed properties, the amount of interest and the amount people are willing to pay can be unpredictable. Using MMoA can allow you to leverage a smaller number of extremely interested potential buyers to secure a higher sale price by making all the interested parties fight a bidding war over it.

04 | Modern Method of Auction Pros and Cons

Unfortunately, like any process, the modern method of auction is not perfect. There are a couple of downsides worth considering before you decide to use this method to buy or sell a house.

What are the Pros of the Modern Method of Auction?

MMoA offers several distinctive advantages:

• Speed of Sale:
  The Modern Method of Auction typically has a fixed timescale for the sale, providing a faster process compared to traditional methods. This can be advantageous for sellers who want to sell their property quickly.
• Fixed Timescales:
  MMoA often has a set timeframe for the auction process, including a defined auction date and completion timeline. This can provide clarity and certainty for both sellers and buyers.
• Greater buyer reach:
  Online auctions, a common format for the Modern Method, can attract a broader audience of potential buyers. This increased visibility can result in more interested parties and potentially higher bids.
• Transparency:
  The auction process is transparent, allowing sellers to see the level of interest and bidding activity on their property. This transparency can provide reassurance and confidence in the selling process.
• Competitive Bidding:
  The competitive nature of auctions can lead to higher prices as interested parties bid against each other. This can be particularly beneficial for sellers looking to achieve the best possible price for their property.
• Reduced Fall-Through Rates:
  The MMoA often requires buyers to pay a non-refundable reservation fee upon winning the auction. This can reduce the likelihood of a buyer pulling out of the sale, resulting in lower fall-through rates.

05 | What are the Cons of the Modern Method of Auction?

While the Modern Method of Auction (MMoA) has several advantages, it’s important to consider the potential disadvantages before deciding to sell a property through this method. Here are some of the main drawbacks:

• Non-Refundable Fees:
  Buyers participating in the MMoA are often required to pay a non-refundable reservation fee upon winning the auction. This fee can be a deterrent for some potential buyers and may limit interest in the property.
• Perceived Distress Sale:
  Auctions can sometimes be associated with distressed sales or properties with issues. This perception may affect the perceived value of the property and attract buyers looking for bargains.
• Fixed Timescales:
  While fixed timescales can be an advantage, they can also be a drawback. Sellers may feel pressured to complete the sale within a specific timeframe, which could be challenging if unforeseen circumstances arise.
• Potential Lower Sale Price:
  The competitive bidding process in auctions can lead to a higher sale price, but there’s also a risk that the property may sell for less than its market value, especially if bidding is not as competitive as anticipated.
• Risk of Not Meeting Reserve Price:
  If the auction does not attract bids that meet or exceed the reserve price set by the seller, the property may not be sold. This can lead to disappointment for the seller and may require them to reconsider their selling strategy.
• Limited Room for Negotiation:
  The auction format may limit the negotiation process, as buyers are often making firm offers during the auction. This may be a disadvantage for sellers who prefer more negotiation flexibility.
• Potential Buyer Misunderstanding:
  Some buyers may not fully understand the auction process, including the implications of the non-refundable reservation fee. This lack of understanding could lead to misunderstandings and disputes.
• Legal and Administrative Complexity:
  The auction process involves legal documentation and administrative tasks. Sellers should be prepared for the associated complexities, and legal fees may apply.
• May not suit all seller situations:
  The modern method will not suit all types of property sale. For example, vendors that need a very quick house sale for any reason such as to help with financial difficulties, the sale time could be too slow. In these cases, sellers would be better off aiming to get a fast house sale via a cash house buying company.

06 | Who offers the Modern Method of Auction platform?

Here is a handy list of the current ten companies that provide a platform if you are looking to use the modern method of auction:

1. SDL Property Auctions:
   SDL Property Auctions is an online auction platform that specializes in residential and commercial property auctions.
2. Auction House UK:
   Auction House is one of the UK’s largest residential property auctioneers, offering online auctions alongside traditional in-room auctions.
3. Allsop:
   Allsop is a property auction house in the UK that conducts both residential and commercial property auctions, including online auctions.
4. Pugh & Co:
   Pugh & Co is a property auction house that operates both traditional and online auctions, focusing on residential, commercial, and land properties.
5. Bidx1:
   Bidx1 is an online property auction platform that facilitates the buying and selling of residential and commercial properties.
6. IAM Sold:
   IAM Sold operates online auction platforms such as the Modern Method Auction and the Traditional Auction. They specialize in residential property sales.
7. Network Auctions:
   Network Auctions is an auction house that conducts live-streamed online property auctions, featuring a range of residential and commercial properties.
8. Bond Wolfe Auctions:
   Bond Wolfe Auctions is a property auctioneer in the UK that conducts both in-room and online auctions, featuring a variety of residential and commercial properties.
9. Clive Emson Auctioneers:
   Clive Emson Auctioneers specializes in land and property auctions, conducting auctions across the UK, including online auctions.
10. John Pye Property Auctions:
    John Pye Property Auctions is part of the John Pye Auctions group, offering online property auctions for residential and commercial properties.

Each of these companies vary in what they offer in terms of the prices they charge as well as the range of services provided.

Conclusion

The Modern Method of Auction presents a structured and accessible way of selling property. This leverages online bidding over an extended period to maximise potential interest in a property.

Its extended completion timeline, accommodating mortgage financing, makes it more accessible than traditional auctions and attracts a broader range of buyers, particularly those interested in standard, finished homes. Such properties are likely to do better using this method than they would at a traditional auction.

However, MMoA still represents a compromise. While it provides a degree of certainty and a fair chance at a satisfactory sale price, it will not match the speed of house-buying companies, the certainty of a traditional property auction, or compete with the higher on-average prices achievable through estate agents.

While MMoA is suitable for most properties and can lead to a good result, it is only the best solution under specific circumstances.

07 | Frequently asked questions

2026 Modern Method of Auction (MMoA) Essentials

Risks, Costs & Comparisons

Strategic Alternatives for 2026

All too often you hear advice saying that you should fix all of the faults in your house before selling it. Surely this is the best way of generating interest to maximise your final selling price?

Perhaps if money is no issue you may want to go ahead and carry out all repairs. But for a lot of homeowners finding the money to make costly repairs before selling is simply not an option.

The bottom line is that you should think carefully about carrying out any repairs before selling your house. This is because not all repairs are absolutely essential or will detract from prospective buyers viewing and offering on your property. Instead, we recommend you follow one simple rule. That is to only undertake repairs that will increase your potential sale price beyond what the same work cost.

The aims of our guide

In our latest guide, we look through the types of repairs and improvements sellers typically make in their homes before selling. We start with cosmetic improvements and then move onto more serious items looking at when it makes sense to fix things and when it doesn’t.

Finally, we look at how you could avoid having to carry out repairs and simply sell your house ‘as is’.

01 | What Not to fix when selling a house

First, let’s take a look at the 15 items within a house that you may consider not essential.

1. Minor cosmetic imperfections

• Small paint chips or scuffs that are easily fixable by the new homeowner.
• Minor scratches on hardwood floors or countertops.

2. Older kitchen appliances

• If your appliances are functional but outdated, buyers may prefer to replace them with newer models based on their preferences.

3. Non-critical plumbing leaks

• Minor leaks that don’t cause significant damage and can be easily fixed by the new owner.

4. Worn carpeting

• If your carpets are worn but not extensively damaged, some buyers may prefer to choose their own flooring.

5. Aging roof with limited issues

• If your roof has a few years left in it and doesn’t have major leaks, buyers may factor the cost of future replacement into their offer.

6. Overly customized features

• Unique features or renovations that might appeal to a specific taste but could be costly to change.

7. Outdated kitchen cabinets

• If your kitchen cabinets are in good condition, but their style is outdated, it may be best to leave these alone. Buyers often prefer to remodel the kitchen themselves.

8. Landscaping overhaul

• Extensive landscaping changes may not provide a significant return on investment unless your garden is a major detractor.

9. Single-glazed windows

• While energy-efficent upgrades are desirable, replacing all of your windows may not be cost-effective unless there are major issues.

10. Dated bathroom fixtures

• If your bathroom fixtures are functional, minor updates like new taps and accessories might suffice.

11. Missing or outdated features

• Features like a lack of garage or an outdated fireplace may not warrant costly improvements.

12. Lack of Smart Home features

• While smart home features are desirable by some, the abscence of these may not be a deal-breaker for many buyers.

13. Outdated lighting fixtures

• Unless the fixtures are in poor condition, minor updates may suffice, as buyers often personalilse lighting.

14. Cosmetic landscaping issues

• Minor issues like uneven lawns or small garden problems that don’t significantly affect the property’s overall appeal.

15. Outdated electrical systems

• If the electrical systemis functional and meets safety standards, a complete upgrade may not be necessary.

02 | What about major works?

If an issue is likely to show up on the survey, a major renovation or repair can be worthwhile.

Examples where this is the case include plumbing or gas problems, a leaking roof, rising damp, or an insect infestation. Buyers find these issues extremely off-putting and solving them before going on the market can be critical to ensuring an easy sale. You don’t want to get off on the wrong foot.

03 | What you Should fix before selling a house

There are some items that cannot be ignored when selling a house. These are the things that will really stand out in any reasonable survey carried out by a mortgage lender on behalf of a buyer. They can also help add value to your home before selling.

04 | Do I need to conduct structural work before selling?

Instead of wondering what not to fix when selling a house, the most important things homeowners look to repair when selling are major structural issues.

These are serious faults which could affect the integrity of the property, and include problems like:

• Roofing issues (slipped, missing or broken tiles)
• Structural cracks
• Subsidence (property sinking)
• Heave (property lifting)
• And bowing (bulging in/out) walls.

Problems like this are often covered by a building insurance policy. If this is the case for you, you should make use of your policy and complete the repairs. You should make sure you do this before marketing your home, as a building site is not attractive to potential buyers.

Since you must disclose any known structural issues in the standard conveyancing document T6 Property Information Form, and they will be picked up by any surveyor worth their salt, repairing these is often a necessity.

If your issue is not covered by an insurance policy, your decision on whether to make repairs becomes more complicated. In such instances, it can often be more economical to reduce your selling price to account for the issue instead. This will save you the hassle of serious building work, and can even work out in your favour financially, especially if attempted repairs reveal further hidden issues. Not to mention the amount of time you will save too meaning you can put your house up for sale quicker.

Remember, if you don’t misrepresent its state, selling a house in poor condition is not illegal. By disclosing a structural issue and accepting a lower price, you can pass on the hassle of any major repairs to your buyer.

05 | Do you have to declare any problems with your house when selling?

In a word – yes. Home sellers marketing a property are legally obligated to reveal anything they know which might impact a buyer’s willingness to buy it. If you fail to disclose anything which might have prevented the buyer from purchasing the property, they can take you to court later for damages.

In addition, when selling a house, most buyers expect a T6 property information form, an Energy Performance Certificate (EPC) and, in most circumstances, an EICR.

When filling in your T6 property information form, you must disclose any known issues with your property, and to get an EICR or EPC your property must be inspected by a qualified electrician or energy assessor, who will complete this to the best of their ability.

In addition, the vast majority of buyers will have an independent survey conducted before making their final offer. If this catches a serious issue you have not disclosed, it could paint you in a bad light, and dramatically reduce the chances of them buying your property for the price you are asking for.

06 | How can I create curb appeal?

While, for the most part, you shouldn’t go over the top in repairs to sell a house, there is one area which is an exception to this.

The public-facing exterior of your house needs to look great. This is the first part of the house any potential buyer will see. Their first impression, known in the industry as its ‘curb appeal’, is critical when selling your property according to UK magazine, House Beautiful.

You should ensure your front garden is tidy, with a mowed lawn and shrubs and hedges under control. Clear away any children’s toys, lawnmowers, bikes, or projects, and pressure wash concrete and brick surfaces like paths, patios, and driveways to ensure they look their best.

It is also critical that your roof and front-facing windows look like they are in acceptable condition. You should replace any missing tiles and patch up any cracks or rot in your window frames and trim, making sure to give them a lick of paint.

A few hours of work on improving the kerb appeal of your property can pay off dramatically. A damaged window frame or piece of trimming is one of the first problems a viewer is most likely to notice, and it could immediately colour their impression of your entire property. While replacing a whole wooden window is rarely worthwhile, it is amazing what a skilled professional can achieve with filler and paint.

Finally, you should repaint your front door. A bright nicely painted front door sticks in the mind and can improve the overall aesthetics of practically any property.

07 | How to sell your house ‘as is’

Sometimes, when a house is in truly terrible condition, it can be worth not doing anything to it at all.

If serious, expensive work would be required to bring your property up to modern standards, you can sometimes make a greater gain by simply selling your house quickly ‘as is’. While redeveloping property has proved very profitable in the past, this was in a very different housing market, and now it can make a lot more sense to sell a house as a project or ‘doer upper’.

While the number of professionals redeveloping tired properties has dropped, many individuals and families are still looking for houses they can fix up. By selling a property at a specialist estate agent or auction house aiming for this kind of buyer, you can cash in on a buyer’s desire to make their mark on a property.

Finally, some tired properties are in such desirable locations that some potential buyers will simply pay more for a plot and planning permission than for the home itself. When this is the case, comparatively high prices can still be achieved, as the majority of buyers interested will be thinking of building their dream home.

08 | Conclusion

Figuring out what not to fix when selling a house can be a lot of hard work.

Thankfully, taking a lighter hand with repairs can often be a more practical approach, and surprisingly lead to you making a quicker sale.

While critical electrical, heating, and plumbing work should be carried out before a property goes on the market, if items in a house mostly work, these should be mostly left as is. Structural issues should either be dealt with using building insurance or disclosed, with the price reduced to account for these.

Minor repairs and aesthetic touch-ups are important, but not as critical as you may think. Expensive home-staging can be a rip-off, with the clinical nature of staged houses being off-putting for some buyers.

Major refurbishments, like installing new kitchens and bathrooms, are often unnecessary. Buyers, often like making these decisions themselves choosing their own fittings and décor to suit.

While most repairs and refurbishment are less important than you would expect, curb appeal, or your house’s first impression is still vital. By ensuring the front of your house and garden is neat, with well painted, clean windows and trim, mowed lawns, and no missing tiles on the roof, you can colour the rest of the viewing positively.

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09 | Frequently asked questions

Here we list the most common questions we are asked. Simply click on a question for the answer.

2026 Renovation FAQs

Repairs, Surveys & Cash Sales

Strategic Selling Decisions

If you are considering whether to sell a house at auction it’s worth just pausing for a moment to think how this works. An auction is a public sale where items or properties are sold to the person who makes the highest offer in a transparent and competitive process, known as bidding.

Bidding works by the interested parties making successive offers to buy, each next offer being higher than the previous. The process ends when no one is willing to pay more than, or outbid, the last bid made.

A lot of people in the UK opt to sell their homes at auction. In 2023 alone, more than 19,000 homes were sold via this method.

While selling at auction can sometimes have slightly negative connotations and is sometimes associated with hard-to-sell properties, the reality is selling your house at auction just offers different advantages and disadvantages when compared to using an estate agent.

In this Ultimate Guide, we explore the pros and cons of selling your house at auction. We also look at the processes used by auction houses in Britain and guide you through how you can sell your property this way.

01 | Why sell a house at auction?

While many people choose to sell a property at auction for a variety of reasons, a few in particular tend to stand out.

Firstly, property auctions are fast, often taking less than two months from initial contact with the auction house through to completion of sale. This could be an important factor when trying to establish how long your house sale will take. Many people can suddenly find themselves in a situation where they need to sell a property quickly. Reasons range from divorce and inheritance to the rapid need to relocate for a career. In these situations, the speed of an auction can be highly desirable.

Secondly, property auctions offer a certain amount of, well, certainty. Your house or property will be presented to buyers, and provided the bidding reaches the Reserve Price, you can practically ensure you sell. This is because once a bid is placed the bidder is legally obliged to buy unless a higher bid is placed.

You are not obligated to accept any offer below an amount called your reserve price, which is the minimum amount you tell the auctioneer you will accept for the property.

If the bidding does not reach this price, you do not have to sell the property, although you can negotiate with the bidders, who are identified afterwards as potential buyers.

Finally, some properties typically do better at auction than on the open market via an estate agent. In the next section, we discuss these properties.

02 | What kind of properties do auctions work best for?

Many properties will sell well at an auction, with some even achieving higher prices than they could through an estate agent.

However, there are a few things which make a property particularly suitable for selling this way.

1. If a property is in poor condition and needs refurbishment, an auction is likely to be an effective way to sell it. This is because auctions often attract property developers and landlords.
2. Similarly, properties with development potential, such as room for an extension or an additional property to be built, often sell well at auction, for the same reason as fixer-uppers. By investing their time and money into these properties, developers can hope to make a substantial profit.
3. Tenanted properties and those which are set up as Houses in Multiple Occupation (HIMOs) often sell better at auction. This is because people looking to build their buy-to-let portfolio often look to auctions to buy property quickly for this purpose.
4. Difficult properties, including those with legal issues, neighbourhood problems, short leases, or those that are un-mortgageable, and those with structural or environmental issues, often sell best at auction.
5. Finally, if your property is mixed-use, such as a flat with a shop below, or is set on a commercial lot, an auction is likely going to be the best way to sell it.

03 | How do traditional property auctions work?

Selling a property at a traditional property auction works in a fairly straightforward way.

First, you would approach an auction house offering traditional property auctions and engage their services.

There are many property auction houses in the UK, operating on both an online and in-person basis, often using technology to integrate the two seamlessly. Which you choose should depend on your property’s details and your specific needs.

Once you have chosen an auction house, they will ask you which auction day you want to sell on. Typically, auction that sell houses run sales days regularly, often monthly, or bi-monthly, and have limits as to how far in advance or how late they will accept a property.

After you choose a date, the auction house will add your property to a document called an auction catalogue. This document lists all the properties going up for auction on that auction day and serves as a key marketing tool, being distributed to potential buyers. These can be viewed both in a printed catalogue and online.

On the day of the housing auction, all the properties in the catalogue will be put up for bidding, one after the other.

If the highest bid on a property exceeds the reserve price, the property will be considered legally sold to the person who placed that bid.

Once a bidder buys a property at auction, they must immediately pay a deposit. This is usually either £6,000 or 10% of the property’s sale price, whichever is higher.

After buying the property, the bidder has 28 days to complete the transaction and pay the remaining portion of the sale price. If they fail to do so, they will be considered as in breach of contract and you as the seller get to keep their deposit for the frustration caused.

04 | What is the Modern Method of Auction (MMoA)?

The modern method of auction, sometimes referred to by the acronym MMoA, is the alternative to traditional property auctions best described as “eBay, but for houses”.

While it is sometimes called an online auction, this is a bit of a misnomer. This is because, since the pandemic, traditional auctions have often been live streamed online, allowing buyers to place bids from anywhere around the world.

The modern method of auction works by advertising a property online, typically on the auctioneer’s website, as well as Rightmove and Zoopla. This allows buyers to place bids on a property over the entire period it is advertised for.

Normally, the property will be listed online for a month, with the current bid amount being public knowledge throughout the process. This is advantageous compared to the opacity of estate agents, where not all potential offers are necessarily made known to the seller.

Once the property auction period has been completed, the highest bidder must pay a payment in addition to the cost of the house, known as the reservation fee. The buyer then has a 56-day period to exchange contracts and to pay for the property.

If the buyers does not complete the transaction, the terms of the contract typically state the seller can keep the reservation fee as compensation for their time off the market and any inconvenience caused.

05 | How do you choose an auction house?

When selling a property at auction, your choice of auction house decides a lot, including your commission and costs, the details of the auction process and the buyers your property is exposed to.

There is no one best property auction company and so your choice should be directed by your property’s specifics and your particular needs. Generally, you should look for auction firms that have sold property much like your own, in similar areas, for good prices recently. Bigger auction companies are not necessarily better than smaller ones, although smaller auction houses tend to be quite highly specialised.

You should also consider how much time you have. Auction houses offering traditional auctions can sell your property substantially faster (8-12 weeks) than those offering the modern method of auction (MMoA) (12-16 weeks). Those offering MMoA can at least theoretically get your property seen by many more potential bidders.

Note that in addition, live auctions can see bidders making heat-of-the-moment decisions they wouldn’t have when using the modern method, potentially pushing your eventual sales price higher.

When it comes to considering price, cheaper is definitely not always better. Higher fee-charging auction houses are typically able to more than make up that difference on your final sale price. Additional fees for advertising and even catalogue entry fees tend to be worth it to get the right property into the right auction house.

It is always worth checking the reviews for any auction house before you engage them to sell a property. Watch out for any with a large number of bad reviews. Good reviews can be bought, but bad reviews are hard to get rid of, and so should be taken into strong consideration.

06 | How do you prepare for an auction?

Before you decide to sell your house at auction, there are a few things you need to do.

Firstly, you need to make sure your house looks the best it can and ensure it is available for potential bidders to come to view it during the period leading up to, or in the case of MMoA, during, the auction.

Second, you need to prepare the auction legal pack. This includes copies of the title deeds, the fittings and contents and property information forms, details about the lease/freehold status of the property, plus local authority, and environmental searches. It is necessary to get new searches just before you put your property up for auction, as this will provide up-to-date information about the property and its surroundings. Buyers can also be encouraged by a recent building survey, which shows your property is structurally sound.

Often sellers seek legal assistance when attempting to put this pack together. Given you will need a conveyancing specialist anyway, this is often a sensible place to get help.

Sometimes properties are put up for auction before the legal pack is completed. Typically, this often reduces bidder interest as buyers cannot be sure of what they are buying.

Third, you will need an energy performance certificate (EPC). This is a document which is required when selling any residential property in the UK. This shows how energy-efficient a certain building is.

Finally, you need to be able to prove that you are the owner of the property, or that you have the permissions required to sell it on someone else’s behalf.

07 | Setting a Guide and Reserve Price

Before the auction begins, you will need to agree on a guide price and a reserve price with your auctioneer.

The guide price is an estimate of the minimum expected sale price. It is not necessarily the price the property will sell for, but it can serve as a rough estimate to start advertising. Choosing a good guide price is important. A lower guide price can help attract interest from potential buyers and stimulate bidding, while a higher price can alter the way the property is received in the market.

The reserve price is the minimum amount you would accept for the property. If none of the bids are higher than the reserve price, the property will not be sold, and the auctioneer will withdraw it from the auction. If this is the case, you can then negotiate with the bidders to attempt to agree a sale. The reserve price is kept private, with only the auctioneer being privy to it.

Generally, your auctioneer will help you select a guide and reserve price, though it is worth doing your own market research, and perhaps seeking a valuation.

Do not let the auction house bully you into setting too low a reserve price, as there is no going back from it.  If you pull out after a property is sold you will have to pay substantial compensation to the buyer and the auction house.

08 | How much does selling a house at auction cost?

The costs of selling at traditional auction can vary quite substantially, but they are typically broken up into five elements.

• Entry/catalogue fee (£100-£500): The entry fee is an upfront payment charged by property auctions to put your property in their catalogue. The fee covers the cost of including and marketing the property, as well as other administrative expenses. Sometimes, the auction house will agree to defer payment of this until after the property has sold.
• Marketing fees (£200-£1000): Auction houses typically offer further in-house marketing services. These can include additional advertising, professional photography, and professional listing creation.
• Auction house commission (2-4% sale price plus VAT): Auctioneers’ commission can vary dramatically, between 2 and 4% of the property’s selling price (+VAT). More unique or expensive properties, and leaseholds typically incur higher fees due to the added complexity of marketing and dealing with these properties respectively. While the level of commission can be negotiated down with some auction firms, don’t expect it.
• Legal Costs (£500-£1500): When you sell your property at auction, you will need a conveyancing professional to handle the legal aspects of the sale. They will help you prepare essential documents, such as the contract of sale, property information, and legal pack. While standard conveyancers can normally handle the auction process, it can still be worthwhile working with a company familiar with the process.
• Ancillary costs (various): Sometimes, additional expenditures are necessary to secure a good sale price. These can include the cost for extending a lease for a leasehold property, architectural plans and planning permission for properties with extension potential. Other additional costs could include independent property surveys showing the condition of the building.

In addition to the above fees to the seller, traditional auction houses often also charge something called a buyer’s premium. This is a fee paid on top of the winning bid to the auction house, and most buyers will consider it when working out their maximum bid.

When using the Modern Method of Auction (MMoA), the cost structure is similar but switches some of the financial responsibilities to the buyer:

• Commission Fee (1-2% plus VAT): This is charged by some MMoA platforms and can vary. Commission fees are typically lower than in traditional auctions ranging from 1% – 2% of the final sale price (+VAT).
• Listing Fee (£300-£1500): Some platforms may charge a listing fee to cover the costs of advertising and marketing the property.
• Legal and Conveyancing Costs (£500 to £1,500): Preparing the legal pack for the auction, including title deeds, property information, and other necessary legal documents, can incur costs.
• Additional Marketing Costs (various): Depending on the platform and the level of marketing required, there may be further fees for enhanced advertising or additional promotional activities.
• Reservation Fee (£4,000-£6,000/ 2.5% sales price, whichever is higher, paid by the buyer): The most notable cost in MMoA is the reservation fee paid by the buyer, usually a percentage of the final sale price or a fixed amount. This fee is in addition to the purchase price and is non-refundable if the buyer fails to complete the purchase.

The modern method of auction tends to offer a more buyer-focused fee structure, with the significant reservation fee often being the primary cost associated with this auction type. This approach can sometimes lead to a higher net return for the seller, albeit potentially influencing the final bid amount due to the buyer’s additional costs.

09 | What are the advantages of selling a house at auction?

There are a number of advantages to selling a property using both the traditional and modern methods of auction.

Below we examine these in more detail:

• Speed: Traditional auctions typically take 8-12 weeks, while modern auctions can take 12-16 weeks, offering a faster process compared to estate agents.
• High Certainty of Sale: Setting a low reserve and guide price almost guarantees a sale within the timescale of the auction. This is ideal for urgent sales if you need to sell your house fast.
• Fixed Timelines: Property auctions provide a set date for the exchange and completion, independent of buyer’s chains.
• Potential for Bidding Wars: Traditional house auctions might encourage higher bids due to the limited bidding time with some buyers ultimately paying more because of the excitement in the room. Modern auctions can also see increased enthusiasm in the final moments, albeit to a lesser extent.
• ‘As-is’ Sale: Properties needing refurbishment or offering development opportunity often attract buyers at auctions. Some sellers have even been known to ‘distress’ properties by making them appear more tired before auctioning a house for sale!

10 | What are the disadvantages of selling at auction?

Selling your house at auction is not a flawless strategy and can have disadvantages. If it was perfect route, every house would be sold this way.

Here we examine the potential downsides of selling at auction:

• Uncertainty of Sale: If no bids meet the reserve price, your property simply does not sell. The alternative, setting a low reserve to ensure a sale, risks undervaluing your property and forcing you to sell it for too little.
• Lower Sale Price: There is the very real risk of selling your property for less than its market value. Bidding wars do not happen for every property and reserve prices are often estimated to be, on average, around 10% lower than what estate agents might achieve.
• Time Constraints: Although faster than estate agents, auctions still take about two months from start to finish. This might not be swift enough if you really do need an urgent sale. For a quicker sale, cash house-buying companies can often be the best route to sell your house faster.

11 | Is it ever worth accepting an offer in advance of an auction?

Generally, not, especially if you have already paid the auctioneers fees.

If a buyer is willing to come to you with a private offer, you know they will be more than likely willing to bid on the day of auction.

Accepting an offer before an auction is only worth considering in a situation where the offer is significantly higher than your target sale price and if the property has unique features that particularly appeal to a specific buyer.

Examples where this is the case can include offers made by owners of neighbouring property, who would benefit from them being contiguous, and those with previous connections and emotional attachments to the property, who will pay more for these reasons.

Even in this kind of situation, you should do your research. It is quite possible that the buyer knows something you don’t, and your estimate of your own property’s value is too low.

12 | What are sealed/closed bids?

Sealed or otherwise called ‘closed’ bids are a method used in property sales where potential buyers submit their best offer for a property in a sealed envelope by a specified deadline. This approach is often used when a property is likely to attract a lot of interest, creating a competitive bidding situation. The seller then reviews all the bids at once after the deadline and chooses the most favourable one.

Sealed bids are not a type of auction in the traditional sense, but they share some similarities with auction processes. Both methods involve competitive bidding to determine the sale price of a property. However, in an auction, bids are made openly, with participants aware of other bids, creating a dynamic, competitive atmosphere. In contrast, sealed bids are submitted privately, with each bidder unaware of others’ offers.

The seller can set the terms, conditions, and deadline for the bids, offering more control over the sale process, while buyers may submit higher offers to outbid unknown competitors, potentially resulting in a better sale price for you.

13 | What are the alternatives to selling a house at auction?

Using an auction is not the only, or even the most common way to sell a house.

Most houses in the UK are sold through high street estate agents, who advertise the property on the open market and encourage potential buyers to make offers. This can often achieve a higher sale price but comes with the downside of potentially taking a very long time. Estate agent sales are also often fraught with property chains where many buyers and sellers become dependent on each other for their own purchase or sale to progress.

The average estate agent-directed sale property sale in the UK takes approximately 25 weeks or almost 6 months, with the potential of it taking much longer than that.

If time is of the essence, and you cannot afford the 12 weeks for an auction sale to complete, selling your house to a house-buying company could be ideal for you. While these companies typically offer you less for your house than you would get at auction, they can sometimes make up for this in part by paying your property within just 28 days.

Finally, if an individual is particularly interested in your house, you can sell it to them through a private transaction. This is very rare and requires you to know the perfect buyer at the time when you want to sell, if it is the case, it can save everyone involved a lot of hassle.

In summary

Property auctions offer a very useful service for people who need to sell property under certain conditions.

By selling a house at auction, you can reduce the time it will take to sell from 25 weeks via a high street estate agent to a more manageable 8-12 weeks.

In addition, auctions are ideal for fixer-uppers, and properties with substantial development potential as many developers shop at auctions. This can help sell properties that everyday buyers are unlikely to be interested in.

However, selling a house at auction does generally come at a cost. While occasionally bidding wars can produce a grater sales price than the reserve figure, properties sold at auction on average only sell for 90% of the price they would have on the open market.

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14 | Frequently asked questions

2026 Property Auction Essentials

Auction Risks & Speed Comparisons

2026 Compliance & Preparation

A repayment plan is a formal structured approach for paying back a debt, agreed between the creditor and the borrower.

More specifically, the term is often used to describe a special agreement where a debt is restructured to make repayment easier, often in the case of arrears.

Mortgage repayment plans serve as a proactive measure to prevent further financial strain, particularly after a default, or if as the borrower you are suffering from financial hardships. These can be crucial in helping you regain financial stability while ensuring that lenders can recover the owed amounts.

In this article, we look at the various aspects of mortgage repayment plans, their benefits, downsides, and how they can be negotiated and re-structured to foster a win-win situation for both lenders and you.

01 | What can lead to a repayment plan?

Normally, repayment plans are agreed upon when you default on a debt, missing a planned repayment.

Repayment plans are often arranged by mortgage lenders following a customer building up these missed payments, known as arrears.

Alternatively, sometimes individuals in financial difficulty attempt to negotiate a repayment plan before defaulting on their debt. This can have a variety of benefits including reducing your monthly payments and avoiding the damage caused to credit by a default.

Sometimes repayment plans will be arranged during a court hearing, often as part of a suspended or time order. The specifics of such arrangements would likely depend on your individual circumstances at the time.

02 | What are the benefits of a repayment plan?

Repayment plans offer benefits for both you and the lender.

By agreeing to a repayment plan, you can:

• Avoid legal action: By agreeing to a repayment plan before the lender files an N5 Claim Form and initiating legal action, you can avoid court action. This can save you an awful lot of stress and money.
• Manage their payment terms: Repayment plans often offer an organised manageable way to repay a debt, with the payments divided into manageable amounts easing your financial burden.
• Reduce monthly costs: By organising an interest-only mortgage or a longer term of repayment, you can reduce your monthly mortgage costs, helping to salvage your personal finances.
• Make repairs to your credit score: Over time, by sticking to the terms of a repayment plan you can improve your credit score. While it may not cover the full impact of a default, over time it will make getting further lines of credit cheaper and easier.

The reason repayment plans work is that they offer benefits to the lender as well. This makes them much more willing to participate in such negotiations.

These benefits are:

• Increasing the likelihood of debt recovery: Lenders are often more likely to recover a greater portion of their outstanding loan if you continue to make payments towards the mortgage, compared to the scenario where they default leading to property repossession. This financial perspective makes lenders relatively flexible concerning repayment plans. If there is a fair chance of recovering the debt along with interest over time, many lenders prefer this over the immediate, but often lower recovery they could achieve through repossession.
• Maintaining and improving customer relationships: When a bank provides support to you during challenging times by facilitating a repayment plan, it not only helps you manage your financial situation but also cultivates a positive relationship. Such supportive actions can result in you continuing to use the bank in the future, and possibly recommending the bank to friends and family. This long-term customer relationship is beneficial for the bank, making repayment plans a favourable option.

03 | What are the downsides to a repayment plan?

While organising a repayment plan may be the best way to deal with your mortgage arrears, they still come with negatives relative to paying your bills on time.

Downsides associated with a repayment plan can include:

• An extended debt period: Repayment plans often extend the period over which the debt is repaid to reduce the amount paid each month. While this reduces the amount you have to pay each month, it leads to you being in debt for longer, or in the case of an interest-only mortgage, potentially indefinitely. This can have a negative effect on mental health and personal growth.
• Interest accumulation: Depending on the terms of your repayment plan, interest on your arrears can continue to accrue. This could leave you owing more in total than you otherwise would have and paying a higher total cost over the lifetime of the loan.
• Impact on credit: While sticking to the terms of a repayment plan can have a positive effect on your credit rating, entering into one initially does not, and is likely to have a substantial negative impact on your credit score.

04 | What are the different types of repayment plans?

There are a few broad types of repayment plans, although all are based on the concept of paying the loan off over a longer period.

Nonetheless, each has its specifics, and so it is worth examining them all in more detail.

Extended repayment plans: An extended repayment plan lengthens the term of the loan, thereby reducing the monthly payments. This plan can provide immediate financial relief to you, making it easier to manage monthly expenses. However, it is important to note that extending the term of the loan could result in you paying more interest over the life of the loan.

Graduated repayment plans: Graduated repayment plans start with lower monthly payments that gradually increase over time. This plan can be suitable for you if you expect your income to rise in the future. The gradual increase in payments can make budgeting and financial planning more manageable, though, like extended repayment plans, the total interest paid over the term may be higher.

Payment holiday or deferred payment plans: These terms refer to arrangements made with lenders to temporarily alleviate the burden of monthly payments during financial hardships or unforeseen circumstances. A payment holiday is a mutually agreed period during which you can pause your payments while, a deferred payment plan may involve postponing payments to a later date or spreading the missed payments out over a longer period, which can also entail temporarily reducing the payment amounts. While both provide short-term relief, they serve as temporary measures and not long-term solutions. It is essential to understand the specifics of the agreement with your lender, as the exact terms and implications may vary.

Interest-only repayment plans: An interest-only repayment plan allows you to pay only the interest charges for a specified period, lowering your monthly payments. Following this period, you can resume making regular payments towards both the interest and the principal. Interest-only repayment plans are often used by homeowners as one of the ways of avoiding having a home repossessed. This plan can provide temporary relief, but it is crucial to understand that the principal amount remains unchanged during the interest-only period.

05 | How do you negotiate a repayment plan?

By taking a step-by-step approach, you can often negotiate with your bank to create a repayment plan which works for both of you.

1. Assess your financial standing: This step involves thoroughly evaluating your current financial situation. You should determine your total income, expenses, and existing debts and calculate how much you can realistically afford to pay towards your mortgage each month without compromising your basic living necessities.

Check your credit score as it might affect the negotiation process. If you have a relatively high credit score, this means you will be seen as more reliable, and banks are likely to offer you better terms.

It is also advisable to think about any upcoming financial changes, like a job change or new expenses, which might impact your ability to repay your debt. If you are going to be generating more income soon, your repayment plan could take this into account.

2. Gather necessary documentation: Collect all relevant financial documents that your lender may request. This includes recent payslips, bank statements, tax returns and a complete list of assets and liabilities.

You should also gather a clear record of your mortgage payments, including any missed or late payments.

3. Research your options: Look into the various repayment options that might be available to you. Understand the terms and conditions attached to each, and how they might impact your finances in the short and long term.

It can be a good idea to talk to a legal or financial adviser when doing this, as they can help you understand what a realistic repayment plan might look like. Some organisations offer free or cheap help to people struggling with debt. These include the Money Advice Service, National Debtline, and the Step Change Debt Charity.

4. Contact your lender: After looking through and understanding what your options might look like, it is time to contact your lender.

It is crucial to contact your lender early, ideally as soon as you anticipate financial problems, as this quick communication may open up more options.

While it is advantageous to communicate with your bank or lender as soon as you are experiencing financial difficulties, they will often still be willing and able to help you work out a repayment plan, even if you default on multiple payments.

5. Propose a realistic repayment plan: Based on your financial assessment, propose a repayment plan that you can adhere to. Be realistic in your proposal to ensure that you can meet the new payment terms and avoid future defaults.

6. Get everything in writing: Once you and your lender have agreed on a repayment plan, ensure that all the terms and conditions are documented in writing. Review the agreement carefully and consider having a legal professional look over it to ensure it aligns with your understanding.

7. Stick to the agreed plan: Adhere to the terms of the new repayment plan, making all required payments on time. If your financial situation changes, contact your lender again to discuss any necessary adjustments.

06 | How to best implement a repayment plan?

The best way to implement a repayment plan varies depending on your individual circumstances, and how flexible your bank is.

It is critical that you prioritise the repayment plan as being manageable. If you cannot make the new payments, you will shortly default on your debt and your plan will not be worth anything.

On the other hand, deferring too much of the mortgage into the future can come back to bite you. Of course, the longer you have a debt, the more interest you will pay in the long term.

The ideal repayment plan balances these two factors to arrive at the best solution for you.

In Summary

A repayment plan is a strategic arrangement between a creditor and you to facilitate the structured repayment of a debt. This is often initiated if as a borrower, you find yourself facing financial hardship or a default on a payment.

In the context of mortgages, repayment plans are very useful when attempting to mitigate financial strain, preventing legal action and potentially a house repossession.

While the benefits of agreeing to one of these plans include making payment terms more manageable and avoiding possession action, their downsides can lead to extended periods of debt and additional interest accruing. Ultimately this leads to a higher total amount to repay over the lifetime of the mortgage.

Nonetheless, through a well-negotiated repayment plan you and your lender can create a win-win, with you being able to keep the home you would have otherwise lost and the lender being able to avoid the losses in profit associated with a repossession.

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For many, owning a home is about more than just having a place to call your own. It can also be an investment that can potentially offer financial security as you grow older. This is because house values grow over time as a result of house price inflation driven by consumer demand.

But how can you access the equity that may have grown in your property as you get older?

Homeowners in the UK who are over the age of 55 do not have to sell their home to access their equity. Instead, this can be harnessed through a process called Equity Release.

Equity release is a blanket term which covers a couple of different financial products. These are essentially long-term loans taken out against the value of a home whilst remaining in it, in exchange for either a lump sum or regular cash payment from the provider.

In this blog, we explain how equity release works, the different types of equity release products available to UK consumers, their benefits, and the risks and dangers they can pose.

01 | How does Equity Release work?

Specifically designed for homeowners who are aged 55 or over, equity release is a financial product that allows you to ‘release’ or ‘unlock’ the value or ‘equity’ tied up in your property. This involves establishing the potential amount to be released through a property valuation and legal work.

In practical terms, equity release transforms the value of your home into a cash lump sum, a regular income, or a combination of both, without requiring you to move out. The reason behind choosing equity release varies. It can serve as supplemental income during retirement, fund significant expenses, or even to help your family financially.

If a property is co-owned, such as by a married couple, the age of the youngest owner must be above the age limit for the equity release scheme in question.

02 | What are the different types of Equity Release?

Equity release schemes can primarily be broken down into two categories: Lifetime Mortgages and Home Reversion Plans.

Each of these works in a slightly different way and has its own distinct benefits and downsides.

03 | What is a Lifetime Mortgage?

A lifetime mortgage is a loan secured against a property, which doesn’t require regular repayments, and instead is paid back by selling the property when the homeowner passes away or moves into permanent residential care.

This type of scheme is normally available for people aged 55 and upwards. The interest rate on the loan can be either fixed or variable.

Generally, lifetime mortgages come with something called a “no-negative equity guarantee”. This guarantee means your debt will never be allowed to exceed the market value of the home it is secured against.

04 | How does Home Reversion work?

Home reversion is another form of equity release scheme, albeit one which is less common than a lifetime mortgage.

This type of scheme is generally available to homeowners aged 65 and over. With a home reversion plan, you sell part or all of your home to a home reversion provider in exchange for a lump sum or regular payments.

Despite selling all or part of your home, you retain the right to live in your property, rent-free, for the rest of your life. This right remains intact regardless of how much of your home you’ve sold, subject to the terms and conditions of your equity release agreement. The amount you receive from the provider is typically below market value since the provider cannot sell the house until you pass away or move into permanent care.

Home reversion plans can be a viable option for those who do not wish to leave a property as an inheritance or who only want to ring-fence a portion of their property’s value for inheritance purposes.

05 | What are the benefits of releasing equity from Your home?

The main reason you may wish to use an equity release product is to ensure access to a lump sum of cash. You may decide to do this rather than selling your property in a hurry to access money tied up in it.

This can be important for a variety of different reasons for different people, with uses ranging from funding living expenses and supporting family members and friends in emergencies or difficulties, to providing the cash for a more extravagant lifestyle. In effect to enjoy later life.

A core benefit of all equity release products is the guarantee you can stay in your property until you pass away or need to move into residential care. This security gives equity release products a huge advantage over conventional mortgages.

Additionally, a less frequently highlighted benefit is the portability of equity release products. This means that even after releasing equity, you retain the option to sell your current property and relocate, thus providing another layer of flexibility and control over your living arrangements.

Understanding the risks and disadvantages associated with equity release products

Equity release products do come with a number of disadvantages.

Firstly, by their very nature, equity release products are loans and as such accumulate interest, which can build up significantly. This could potentially lead to a scenario where, when the loan is finally repaid, there is little or nothing left to pass on to heirs to inherit.

However, most equity release products incorporate a crucial safeguard known as a no-negative equity guarantee. This prevents the accrued debt from ever exceeding the value of your property, protecting you from significant financial risk. It’s important to note that unscrupulous providers might not include this guarantee, putting you in potential financial jeopardy.

For assurance, look for providers who adhere to the Equity Release Council’s product standards. Registered providers are required to include a no-negative equity guarantee in all their equity release products. By ensuring your chosen provider is a member of the Equity Release Council you can effectively mitigate one of the key risks associated with equity release schemes.

There are also other downsides to equity release.

By increasing your assets, you can make yourself ineligible for some state benefits, and while many equity release providers will allow you to move home, they will place limitations on the types of property you can buy.

Finally, equity release can be extremely difficult and expensive to escape from. In addition to having to raise the funds to pay back your loan, you may also need to pay a large repayment fee if you decide to back out of the scheme.

06 | How should you release your capital?

Most equity release schemes allow you to choose how you receive the capital you are freeing up.

Some people choose a one-time payment, which they may then invest in a savings account, while others pick a regular monthly income.

There is also a third, more flexible option, the drawdown mortgage.  A drawdown mortgage allows you to access your money in a flexible manner by taking an initial lump sum, and then leaving the rest of your funds in a reserve account facility that you can draw from as needed.

The way in which you choose to do this can be one of the more important financial decisions you will make.

In the following section, we look at the benefits and downsides to each method.

Single Lump Sum: Benefits

Opting for a single lump sum means you receive the entire loan amount all at once.

This approach can be highly beneficial if you have immediate and large expenses such as repaying an existing mortgage, performing extensive home renovations, or clearing other significant debts.

Moreover, a lump sum can provide the means for substantial investments to secure a decent income, or for assisting family members financially on a larger scale.

Single Lump Sum: Downsides

The key downside of a lump sum is that interest begins to accrue on the total loan immediately, and this can compound quickly if it isn’t managed. While you will not be charged this directly, it can quickly reduce the value of your estate dramatically.

While the lump sum doesn’t directly affect your tax bracket, as the money received from equity release is tax-free, by investing the money and generating income from it, you could potentially increase your income enough to affect your tax position.

Furthermore, receiving a lump sum could affect your eligibility for means-tested benefits, including Universal Credit and Child Benefit.

Regular Income: Benefits

Some equity release schemes offer the option to receive an income made up of regular payments.

This option essentially turns your property into a sort of pension, providing you with a steady stream of income that can be a great way to supplement your retirement.

Regular Income: Downsides

Often this method ends up providing a lower overall cash amount compared to a lump-sum release.

In addition, similarly to a lump sum, receiving regular income could also potentially affect your tax position if this income is invested and generates returns. It may also impact your eligibility for means-tested benefits if it pushes you over a relevant income threshold.

Drawdown Lifetime Mortgage: Benefits

A drawdown lifetime mortgage offers you greater flexibility than the previous two options.

You can take a smaller initial amount and then draw further funds as and when you need them.

The primary advantage here is that interest is only charged on the funds you’ve withdrawn, not on the total amount that is available to you. This can substantially reduce the total interest you end up owing.

Typically, drawdown mortgages are only available with lifetime mortgages, and not as part of a home reversion scheme.

Drawdown Lifetime Mortgage: Downsides

Drawdown lifetime mortgages typically have a few downsides compared to a lump sum, or a regular income.

Firstly, if you immediately need a large sum of cash, this product is unlikely to be ideal for you. Typically you are limited to smaller initial lump sums than if you were taking out a lump sum mortgage.

In addition to this, drawdown plans are more complex than other forms of equity release, and it is important to ensure you are clear on the schemes terms before you take such a loan out.

In summary

Equity release can be a great way to leverage the value tied up in your home in the later stages of life.

However, it’s essential to carefully consider the advantages and downsides of the different types and methods of equity release.

Given the long-term impact and potential complexities, professional advice is not only recommended but is mandatory under regulations from the Financial Conduct Authority in the UK. As with all big financial decisions be sure to consult with a financial adviser to ensure you’re making the best decision for your financial future.

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