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

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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