Auction gives you a clear timetable and a transparent process. Buyers bid against each other, and the property only sells if bidding reaches the reserve price you agree with the auction house.
The auction timeline
- Set a reserve. You agree the lowest price you will accept with the auction house. The property will not sell below it.
- Marketing, usually around 3 weeks. The property is listed in the auction catalogue and buyers can view it and read the legal pack.
- Auction day. At a traditional auction, contracts exchange when the hammer falls, so the sale is legally binding there and then.
- Completion, usually 28 days later. The buyer pays the balance and the sale completes on the date set in the auction terms.
Traditional and modern-method auctions
There are two main types of property auction, and the difference matters:
- Traditional auction. When the hammer falls, contracts are exchanged and the sale is legally binding. Completion usually follows about four weeks later, on a date set out in the auction terms. Buyers generally need their money ready, so this suits cash buyers and investors.
- Modern method of auction. The winning bidder pays a reservation fee and then has a set period, often around four weeks, to exchange contracts, followed by a period to complete. This gives mortgage buyers time to arrange finance, but the sale is not binding at the moment bidding ends.
We will explain which type an auction house is offering and what it means for you.
When auction often makes sense
- Executors who want a transparent sale that beneficiaries can see was fair.
- Properties that need modernisation or are hard to value.
- Sellers who have struggled to sell through an estate agent.
- Anyone who wants a fixed timetable.
Costs
Auction houses usually charge the seller an entry or marketing fee, and often a commission if the property sells. You will also need a solicitor to prepare a legal pack before the auction. We will explain every cost clearly before you agree to anything, and how we are paid.
The auction house pays us a referral fee, so you do not pay us directly.
How we help
We recommend an auction house that suits your property, help you set a realistic reserve, make sure the legal pack is ready on time, and stay involved through to completion.