Selling at Auction

How Auctions Work

You instruct an auction house 6–8 weeks before the auction date. The auctioneer values your property and sets a reserve price (the minimum you'll accept). The property is marketed for 4–6 weeks, with viewings arranged.

On auction day, bidders compete, and if the reserve is met, the hammer falls. The buyer immediately pays a 10% deposit and exchanges contracts. Completion typically occurs 28 days later. If the reserve isn't met, the property is withdrawn — you can then negotiate privately with interested parties.

Costs

Auction houses typically charge entry fees of £500–£1,000 plus VAT (payable even if the property doesn't sell), plus commission of 2–3% of the sale price plus VAT. You'll also need to pay for a legal pack (£300–£600), EPC, and marketing materials. Total costs can be £1,500–£3,000 before commission.

Suitable Properties

Auctions work well for:

• Unique or unusual properties that are hard to value
• Properties needing renovation (popular with developers and investors)
• Tenanted properties
• Properties being sold by executors or in divorce settlements
• Land and development opportunities
• Properties where speed is essential

Advantages

Speed and certainty: sale agreed in one day with legal completion in 28 days. No chains or gazumping. Competitive bidding can drive prices up. Attracts serious, cash-ready buyers. Good for difficult-to-sell properties.

Risks

Property may not reach the reserve price and fail to sell. Upfront costs are payable regardless. Limited marketing period compared to traditional marketing. May achieve lower price than private treaty if competition is weak. You're legally bound to sell at the reserve price even if you change your mind on the day. If auction isn't right for you, consider using an estate agent or selling privately.