Selling your house at auction: everything you need to know

How property auction works in the UK

When a property sells at auction, the exchange of contracts takes place in the auction room, or online, on the day of the sale. The buyer pays a deposit immediately, typically 10 percent of the sale price, and has 28 days to complete. Once the hammer falls, both buyer and seller are legally committed.

This is the fundamental advantage of auction: certainty. The pre-exchange fall-through risk that affects around one in three open-market sales simply does not exist once the hammer has fallen.

The two main types of property auction

Traditional auction

The property is listed, bidding happens on a fixed date, and exchange is immediate. The 28-day completion window follows. Traditional auction is the format most people are familiar with. It tends to attract experienced investors and property developers who move quickly.

Modern method of auction (online)

Also known as conditional auction. The buyer pays a reservation fee on the day of auction and then has a longer period, typically 56 days, to exchange and complete. This format is more accessible to mortgage-backed buyers because it gives them time to arrange finance.

The modern method provides less certainty than traditional auction because the extended period allows more time for things to change before completion. However, it can attract a wider pool of buyers and is increasingly common.

Guide price and reserve price

The guide price is what the auctioneer publishes to attract interest. It is set at a level that generates competitive bidding, typically at or below the minimum acceptable price.

The reserve price is the minimum price you have agreed to accept with the auctioneer. It is confidential and not disclosed to bidders. If bidding does not reach the reserve, the property passes and does not sell at that auction.

Understanding the relationship between guide price and reserve price matters before you commit to an auction.

Auction fees

Selling at auction involves costs that reduce your net proceeds.

Seller's fees: Most auctioneers charge the seller an entry fee of £200 to £500 and a success fee of typically 2 to 3 percent of the sale price plus VAT if the property sells.

Legal pack preparation: You need a solicitor to prepare the auction legal pack, searches, title documents, and special conditions. This typically costs £500 to £1,500 and needs to be completed before the auction date.

Unsold lot fee: If the property does not reach the reserve, some auctioneers charge a relisting fee.

These costs are in addition to any general solicitor conveyancing fees. Understand the full fee structure before instructing.

What types of property suit auction?

Auction works well for properties requiring significant renovation or refurbishment, properties with unusual features or complex situations such as knotweed, subsidence, or a short lease, properties where the seller needs a fixed completion date, probate properties where holding costs are mounting, buy-to-let properties or portfolios, and properties that have been difficult to sell through conventional methods.

Auction tends to work less well for standard residential properties in good condition, where estate agents typically achieve higher prices. It also suits less well situations where the seller needs to maximise the final sale price above everything else, or where the guide price needed to attract buyers is significantly below what the seller needs.

Auction versus cash buyer

Both auction and a cash sale offer speed and certainty compared to the open market.

On price, auction may exceed the cash buyer's offer if competitive bidding occurs, but it may also fall short. On timeline, auction requires a fixed auction date that is usually four to eight weeks away when you instruct; a cash buyer can complete sooner. On certainty, both offer strong certainty post-exchange, though auction has a four to eight week preparation window during which the seller is committed to that date. On costs, auction involves seller's fees and legal pack preparation costs, while a cash buyer covers your legal costs with no agent fees.

For sellers in South Yorkshire, both routes are available. South Yorkshire Property Buyers offers a cash purchase within 7 to 28 days, with no seller fees and legal costs covered.

Please note: taxes including Capital Gains Tax remain the seller's responsibility. We recommend seeking independent tax advice if applicable.

Common questions

How quickly can a property sell at auction?

From instruction to auction day is typically four to eight weeks, depending on the auctioneer's schedule. Add 28 days for traditional auction completion, so around six to ten weeks total from instruction to funds in your account.

What happens if my property does not sell at auction?

If bidding does not reach the reserve, the property passes. You can relist at the next auction, adjust the reserve, or pursue a different sale method. Some auctioneers have post-auction sale options where properties can be sold privately at the reserve price in the days after auction.

Can I sell at auction with a sitting tenant?

Yes. Tenanted properties are commonly sold at auction. The tenancy is disclosed in the legal pack and investors bid accordingly.

Do I need to attend the auction?

No. Your solicitor and the auctioneer manage the process. You can follow online or simply wait for confirmation from your auctioneer.

What is the difference between auction and cash buyer timelines?

An auction has a fixed date set by the auctioneer, typically four to eight weeks after instruction. A cash buyer can be more flexible, faster if you need it, sometimes seven days, or slower if you need more time. Cash buyer completion can be arranged for a date that suits your situation rather than the auction calendar.