How to sell a house at auction

With over 18,000 residential homes sold annually via auction, it’s a popular choice for homeowners seeking a fast and secure sale. Auctions can be particularly advantageous for properties with structural issues or other challenges that might deter traditional buyers. 

If your priorities include speed, security and attracting a wide range of potential buyers, including investors, then an auction could be the perfect solution. 

Auctions offer several benefits, such as a quick turnaround time and legally binding contracts that eliminate buyer withdrawal risks. The competitive bidding environment can also drive up the final selling price, potentially exceeding your expectations.

However, auctions aren’t without drawbacks. There’s no guarantee your property will sell, and the final price remains unknown until the auction concludes. Additionally, auctions involve fees and require a fast move out after the sale.

If your primary goal is a fast and guaranteed sale with minimal hassle, consider alternative options like selling to a cash buying company. Companies like The Property Buying Company can purchase your house in as little as 7 days, bypassing the uncertainties and complexities of the auction process. We even cover your solicitor fees, making the transaction smooth and stress free.

Why should I sell my house at auction?

Selling your house can be a daunting process, but choosing the right method can make all the difference. Have you considered selling your house at auction? Here’s why it might be the perfect fit for you:

Guaranteed results

• According to Clive Emson Auctioneers, Auctions boast an impressive 80% success rate, significantly higher than the 50% you might expect with a traditional estate agent. This means your chances of securing a sale are considerably higher from the start.

• Even in the rare case your property doesn’t sell at the auction, the auction house can continue working to find a buyer afterwards, ensuring you’re not left high and dry. 

Speed

• Say goodbye to lengthy chains and last-minute dropouts. Auctions offer a secure, streamlined process, often completing within weeks of the auction date. You’ll receive a non-refundable deposit on the day of the auction, providing immediate security and peace of mind.

Security

• As soon as the hammer goes down, the auction becomes legally binding and the buyer can’t pull out. 

A versatile solution

• Auctions are the perfect solution for properties that are unique, in need of renovation, or might otherwise take longer to sell. Whether it’s an unusual construction, a fixer-upper or a property with sitting tenants, auctions welcome all types of properties.

Stress-free selling

• An experienced auction house handles everything for you: marketing, managing bids, registering buyers, and taking care of the transaction details. You can sit back, relax and let the professionals handle the complexities. 

When auctions shine

• If you’re looking for a quick, efficient and secure sale, an auction could be the perfect solution. Properties that might be considered “difficult to sell” through traditional methods often thrive in the auction environment. 

There are also protections in place to protect potential buyers, with property auctions operating under established legal frameworks (Sale of Goods Act 1979), providing buyers with a degree of security and recourse if a property doesn’t meet basic standards.

Auctioneers are obligated to provide accurate descriptions of properties, reducing the risk of surprises or misrepresented conditions. While the standards for “satisfactory quality” may vary for older properties, buyers can expect a reasonable level of functionality and safety.

What types of properties thrive at auction?

While nearly any property can be auctioned, some are particularly well-suited for this method of sale, including:

When shouldn’t you sell your house at auction?

While selling your house at auction comes with many reasons to, there are also quite a few reasons why you shouldn't:

How quickly will my house sell at auction?

If you need to sell your house quickly, auctions offer a compelling solution. From the moment you list your property, to the moment you exchange your contacts it can be legally sold in 3 to 4 weeks. The entire process, from listing to final sale, can be completed in as little as a month.

How does the auction process work?

• Before the auction (3-4 weeks)

The auction house prepares marketing materials, advertises your property and conducts viewings. Early listings can maximise exposure and increase the chances of pre-auction offers.

• Auction day 

Each property is auctioned individually, typically taking 3 to 5 minutes per lot. The winning bidder pays a 10% deposit and exchanges contracts, making the sale legally binding.

• After the auction (3-4 weeks)

Completion usually occurs 28 days after the auction. However, both parties can agree to an earlier or later completion date to accommodate individual needs. 

Should I accept offers before the auction?

Before your property goes to auction it will be marketed to buyers via the auctioneer and you could potentially get a number of viewings prior to the auction day.

At this point you will sometimes find that potential buyers make you an offer before the auction and it is then up to you as to whether you want to take that or risk going to auction.

It would be wrong for us to say whether you should accept this offer or not because it depends on your personal circumstances, if you want a quick sale as a priority then you may want to accept it.

However if someone is making an offer prior to the property going to auction it often means that they think there will be a high demand for it so they're trying to prevent a bidding war.

What do I need to know about auctions?

As mentioned before, selling your house at auction offers a fast and secure sale, as buyers are legally bound once the hammer falls, with a 10% deposit due immediately and the remainder within a month, or 2 months if selling via MMoA. 

The competitive bidding process can significantly increase the final price, particularly in a live auction environment where eager buyers vie for your property. 

Auction houses attract a diverse range of buyers, including those specialising in unique or fixer-upper properties, ensuring your house reaches the right audience and receives full market value.

If time is of the essence, auctions are an excellent option. With sufficient interest at a realistic reserve price, your property can sell quickly, making it ideal for urgent situations like relocation or financial needs.

The auction world offers a variety of options, each specialising in different property types or situations. Researching and selecting the right auction house is important to maximising your property’s value and achieving a successful sale.

While auctioning provides these benefits, be mindful of the associated costs. Auctioneers usually charge around 2.5% of the sale price, plus potential advertising fees. Engaging a solicitor for legal aspects is also essential, so compare fees to find a balance of affordability and quality service. 

How to choose an auction house

The property auction industry is less fragmented than the estate agent market, with a smaller number of players dominating the landscape. While around 80% of auctioned properties are sold by just 25 auction houses, choosing the right one for your property requires careful consideration. 

There is no one-size-fits-all answer, as the “best” auction house depends on your own situation and the type of property you have. To make an informed decision, you should:

1. Compare auction houses: research their fees, marketing strategies, success rates and area of specialisation.

2. Check online reviews: Look for feedback from other sellers on platforms like Trustpilot or Google. 

3. Seek expert advice: Consult experienced estate agents, property professionals or cash buyers for recommendations and insights. 

4. Consider your property type: Some auction houses specialise in specific property types (e.g. repossession) or situations (e.g. quick sales). 

Some other important things to consider when choosing your property auctioneer are:

Beyond market share

• Don't be swayed by size: The largest auction houses may not have a strong presence in your area or the highest success rates. Their sheer size can also lead to impersonal service and potential delays.

• Smaller can be better: Boutique auction houses often provide personalised attention, have highly experienced staff and boast impressive success rates.

Prioritising success rates

• Aim high: Look for auction houses with a success rate above the industry average of 70.6%. Top performers achieve success rates of 90% or more.

• Beware of low success: Auction houses with low success rates might overvalue properties to attract listings, potentially leading to disappointment for sellers.

Leveraging reviews (with caution)

• Beware of mixed reviews: Many auction houses also offer estate agent services, so filter reviews to focus on their auction performance.

• Red flags: Negative reviews from buyers can indicate unethical practices that might impact sellers too.

• Don’t be fooled by fake reviews: Look for a balance of positive and negative feedback, and consider the number of reviews in addition to the overall score.

Beyond price: Understanding auction fees

Auction house fees vary widely. While cheaper options might seem appealing, consider the bigger picture:

• Value over cost: A higher-priced auction house with a superior track record and stronger marketing strategies might achieve a higher sale price, ultimately making them the most cost-effective choice. 

With so many auction houses to choose from, finding the right one for your specific needs can be a challenge. Some auction houses specialise in specific types of properties (repossessions, probate properties) or situations (quick sales, cash release). 

Consider if your property fits any of these categories. But, most auction houses can handle a wide range of property types. If you have a standard residential or commercial property, this could be a good option.

Companies like Allsop, Auction House, Barnard Marcus, and Countrywide have extensive reach and a large database of potential buyers. Which could be beneficial if you want maximum exposure for your property. 

But, platforms like The Property Auction Company, Property Solvers Online Auctions, and Under The Hammer offer a modern, convenient approach. They often use technology for faster and more secure sales, and they may be part of larger networks specialising in quick property transactions.  

In order to choose the right auction company for you, you should: Compare the different auction houses, their fees, marketing strategies and success rates. Look for online reviews on Trustpilot or Google from other sellers. Talk to experienced estate agents, cash buyers (like ourselves) or auctioneers to get recommendations and insights.  

Check out our guide on the Best Online Auction Companies for detailed information and comparisons to help you make an informed decision.

What are reserved prices?

The reserve price is simply the lowest price you will be able to accept - it completely depends on your situation but again this is something that your auctioneer can help you with.

If all the offers you get on your property are lower than this then your property will be withdrawn.

Think long and hard about it though, if someone offers your reserve price then the hammer will drop and you can't drop out at this point!

If you get your reserve wrong and nobody offers high enough, don't worry. After the auction has finished you can still negotiate with any of the buyers at the auction.

What to do before auction?

Before the property auction, you will need to carry out everything in this checklist:

What are the fees for selling house at auction?

Selling a house at auction could cost nearly £1200 plus VATin solicitor’s fees and then the selling at auction fees are on top of that, at around 2.5% of the final sale price of the property.

Even if your property doesn’t sell, you’ll have to pay the auction fee. The Property Buying Company covers all legal fees and doesn’t charge commission, meaning that the amount we offer you is the amount you’ll receive.

How to set a guide price

The guide price is important for attracting potential buyers and driving a swift sale in a property auction. It is the publicly advertised starting point for bidding. In estate agent listings, it usually reflects the seller’s minimum price and the agent’s assessment of market value. In auctions, it’s set by the auctioneer after the seller establishes their reserve price. 

To ensure transparency and avoid misleading buyers, the Advertising Standards Authority (ASA) introduced guidelines in 2014:

• 10% Rule: The guide price must be within 10% of the seller’s reserve price (either a single figure or a range).

• No Understating: The guide price cannot be more than 10% lower than the reserve price. 

These rules help potential buyers estimate the reserve price and make informed bidding decisions. Your auctioneer will advise you, but ultimately, you decide the guide price. Consider these factors:

• Market value: Research recent sales of comparable properties in your area.

• Condition: Factor in the condition of your property and any necessary repairs.

• Motivation: How quickly do you need to sell? A lower guide price can attract more bidders and create a sense of urgency. 

The guide price is just an indication, not a commitment. You are not obligated to accept any bids below your reserve price. By understanding the role of the guide price and working closely with your auctioneer, you can set a price that attracts competitive bidding and leads to a successful auction sale. 

Legal considerations

When it comes to selling your house at auction, there are a few legal hurdles you and your solicitors will need to consider:

Legally binding contract

Once the hammer falls at auction, the sale becomes legally binding. The highest bidder is obligated to purchase the property, and you, as the seller, are obligated to sell it. This means you cannot change your mind or negotiate further after the auction.

Pre-auction legal pack

Before the auction, you’ll need to instruct a solicitor to prepare a legal pack for potential buyers, this usually includes:

• Title deeds

• Property information form (TA6)

• Energy Performance Certificate (EPC)

• Any relevant planning permissions or building regulation documents

• Information and fixtures and fittings

• Leasehold information (if applicable)

• Any other relevant legal documents.

Special conditions of sale

Your solicitor can also draft special conditions of sale that address specific aspects of the transaction, such as:

• Completion timeline

• Payment terms

• Any issues that need to be resolved before completion

Buyer’s due diligence

It’s important that potential buyers conduct their own due diligence before the auction, which may include reviewing the legal pac, conducting surveys and obtaining their own legal advice. 

Post auction legal process

After the auction, your solicitor will work with the buyer’s solicitor to finalise the sale, which includes exchanging contracts, transferring ownership and completing the financial transaction. 

Other legal considerations

Due to Disclosure of Information, you are legally obligated to disclose any known defects or issues with the property. Failure to do so can lead to legal disputes after the sale.

10 Things to avoid doing at an auction

While selling your house at auction offers many advantages, there are some common things that can undermine your success. By steering clear of these missteps you can ensure a smoother and more profitable auction experience:

By avoiding these common mistakes and following these guidelines, you can maximise your chances of a successful auction, achieving a quick and profitable sale while minimising stress and any potential complications.

Pros and cons of selling property at auction

If you’re considering selling a house at auction then it is really important to weigh up the pros and cons of this service.

What are the pros of the selling house at auction?

Properties bought at auction usually complete within 28 days, offering a fast and efficient sale process compared to selling with an estate agent, this allows you to move on to your next project or investment without delay.

Contracts are exchanged immediately after the auction, providing a legally binding agreement and eliminating the risk of gazumping or lengthy chains, offering sellers security and peace of mind. 

Witnessing the bidding process firsthand allows you to gauge the true market value of your property and potentially achieve a higher selling price than anticipated through competitive bidding.

Auctions often attract property investors seeking renovation projects or rental opportunities. This can be beneficial if your property requires repairs or upgrades, as investors are often willing to pay a premium for the potential return on investment.

Once the hammer falls, thes sale is legally binding, giving you control and eliminating the possibility of buyers backing out due to cold feet or finding a better offer. 

What are the cons of the selling house at auction?

Unfortunately, there’s no guarantee your property will sell at auction. If it doesn’t reach the reserve price, you might re-list it or explore alternative selling options. 

While competitive bidding can drive up the price, there’s also a chance it won’t exceed your expectations. The final selling price remains uncertain until the auction concludes.

Auctions involve fees, including entry fees and potential commission fees upon successful sale. These costs should be factored into your financial calculations. 

The fast completion timeline can be challenging if you need more time to move out or make arrangements. You’ll need to be prepared for a quick transition after the auction. 

All sales are final at auction. If you’re not satisfied with the final price or your circumstances change, you cannot back out of the transaction.  

If these potential cons of selling your house at auction are causing hesitation, consider selling to us! Here at The Property Buying Company we can offer you a secure, free and fast sale that no auction company can offer.

Is selling my house at auction right for me?

Although a number of properties can do well at auction, it is a gamble. If you don’t meet your reserve then you’ll still have to pay the selling at auction fees and sell your property.

Always seek advice from the auctioneer before agreeing to sell your house via this platform. They are experienced enough to let you know if your property is likely to sell and for how much.

Don’t go ahead with it if you feel uneasy about anything and if you need a quick sale of your property remember that there are other options available to you.

If after reading this guide, you are perhaps getting an inkling that property auctions aren’t your best option then you might be curious as to what other options you have available, here are your main choices:

Estate agents

• This is the most traditional way of selling your home. It involves an estate agent visiting your home, valuing it and putting it on popular property portals and waiting for enquiries. This method is typically quite slow in comparison to auctions and other options. Estate agents will also charge you a fee which is either a percent of your property or a flat cost when the sale is complete.

Private sale

• This is when you sell your house yourself. It means you put in the leg work and use your network of connections in any way possible to sell your home, this will save you the estate agent fee.

Part exchange

• This will only work for some as it tends to only be offered if you're buying a new build. The new build company itself will offer to buy your home if you buy theirs in exchange. This however is often done at significantly below market value.

Quick sale companies

Selling a house at auction can be a great way to get rid of a problem property and it can be pretty exhilarating. However, if you want to guarantee the quick sale of your property then a quick cash buyer could be a better option. 

The Property Buying Company will offer you a fair cash sum, will complete in a timescale to suit you and will include all legal fees so there are no hidden extras to worry about down the line. What’s even better is that no property is off-limits, even ones that are in need of a lot of renovation or repair.

Why do houses not sell at auction?

While auctions often lead to successful sales, there are instances where a property might not find a buyer. This can happen for several reasons. One common issue is misaligned pricing. If the reserve price, the minimum you're willing to accept, is set too high, it can discourage potential buyers, even if they are genuinely interested.

Auctioneers are experienced, but misjudgements can happen. Similarly, the guide price, advertised publicly can also influence buyer interest. An inflated guide price might deter bidders, while a suspiciously low one could raise concerns about the property’s condition. 

Insufficient buyer interest can also be a factor. Despite the auctioneer’s efforts, sometimes a property fails to generate enough buzz. This could be due to various factors, including timing, marketing strategy or the property’s specific appeal. 

Even with decent interest, the actual number of bidders on auction day can be unpredictable. If too few bidders participate or their offers fall short, the property might not sell. 

Another potential issue is limited viewing opportunities. Potential buyers might need to see the property in person to make an informed decision. If viewing slots are limited or inconveniently timed, it can hinder buyer interest and participation. 

Finally, problems with the legal documentation can also deter buyers. A flawed legal pack can raise red flags for potential buyers and their solicitors. Missing information, inconsistencies or potential legal issues can deter bidders from proceeding. 

Remember, auctioneers are motivated to sell your property, as their commission depends on a successful outcome. They’ll work with you to address any issues and find solutions to ensure your property reaches its full potential at auction. 

Can a seller pull out of an auction sale?

While a seller has flexibility before the auction - they can withdraw the property, postpone the sale, or even accept a pre-auction offer - the situation changes dramatically once the hammer falls. 

At that moment, a legally binding agreement is formed between the seller and the highest bidder. This means the seller cannot simply pull out of the sale without facing significant consequences. 

Unlike a standard sale where there might be room for negotiation or withdrawal, an auction sale is definitive. Attempting to back out after the auction can result in:

• Loss of deposit: The seller will usually lose their deposit, which is a substantial amount (often 10% of the sale price). 

• Liability for fees: The seller may also be liable for the auction house’s fees and other associated costs incurred by the buyer.

• Legal action: In some cases, the buyer could take legal action against the seller for breach of contract, potentially leading to further financial penalties. 

In essence, once the gavel falls at an auction, both the seller and the buyer are firmly committed to the sale. The only way for a seller to withdraw at this stage would be if the buyer fails to fulfil their obligations, such as not providing the necessary funds for completion. 

If you’re looking for an even more secure and predictable selling experience, consider selling your house with a reputable cash house buyer. Here at The Property Buying Company, we guarantee a sale at a pre-agreed price, often with a faster completion timeline and no risk of buyer withdrawal, providing a reliable alternative to the uncertainties of an auction.

Sell your house at auction

Looking to sell your house quickly and efficiently? Want a truly stress free house sale? The Property Auction Company, a branch of our leading UK house selling solutions company, offers a seamless auction experience, combining our expertise as cash buyers with a streamlined auction platform.

When you sell your house with The Property Auction Company, you benefit from a seamless, Trustworthy and efficient process. We’ll guide you through every step, ensuring a stress-free experience and a successful sale. 

If you are ready to sell your house quickly and confidently, fill out our postcode form as normal below, and then ask to sell your house at auction! Let us help you achieve your selling goals with our streamlined auction process and expert guidance. 

How to sell a house at auction FAQs