Selling a House at Auction: A Complete Guide for UK Property Owners

Want to sell your house in just 28 days?

That’s what selling a house at auction promises.

But is it true?

I’ve bought or sold over 200 properties through auction houses. And I’ve seen some sellers get great prices. Others lost thousands.

The auction room can feel scary.

You need to know the tricks that work.

I’ll share what I’ve learned about winning at auction. And in this article, you’ll discover if auctions are right for you.

Let’s explore your options together.

What is a Property Auction and How Does it Work?

I’ve worked with property auctions since starting in the industry.

Modern Auction Methods

I’ve seen auctions change dramatically over recent years. Traditional ballroom sales still happen. 

But online auctions dominate now.

The process feels simpler than many expect. Most properties complete within a few months months.

Modern auctions work differently from traditional ones. I help clients understand both options. Each method suits different selling needs.

How Auctions Work Today

I explain these key points to every seller:

• Reserve prices protect your interests
• Buyers need instant deposits
• Completion usually takes 28 days after the auction finishes
• Online bidding runs for longer
• But online marketing reaches more buyers

I’ve noticed online auctions attract different buyers. They often bring better prices. 

Because people bid from anywhere at any time.

However, traditional auctions still serve their purpose. I still use them often for certain properties. The competitive atmosphere drives strong results, especially if you get 2 or more people that really want that property. 

Typically in person auctions are better for run down properties that need some work doing thanks to TV shows like “Homes Under the Hammer”.

Each method has its strengths. Let’s find which suits your property best.

Is Selling Your House at Auction Right for You?

I’ve guided countless homeowners through this important decision.

When Auctions Work Best

I see auctions work perfectly in specific situations. 

Inherited properties often sell well here. 

Empty houses that need quick sales.

Speed makes auctions particularly attractive sometimes. They can get your sale completed in 28 days after the auction date. Traditional sales take months.

Some properties just suit auction sales better. I often recommend this for renovation projects. Unusual homes find their buyers quickly.

Making Your Decision

I share these decisive factors regularly:

• Unmortgageable properties sell well here
• Quick completion helps urgent situations
• Investment buyers attend regularly
• Chain-free sales happen every time
• You’ll know exactly when you’ll move

I’ve watched auctions transform difficult sales. Properties with problems find buyers. 

The right audience already exists.

However, there are other options to auctions. This table will help you see the pros and cons of each selling option quickly…

Sale Method	Timeframe	Price Range	Fees	Hands-on Level	Additional Notes
Cash House Buyers	7-28 days	75-85%	None + legal fees covered	Minimal	Quickest most certain sale route
Traditional Auctions	3-4 months	75-90%	2-3% + entry fee + legal fees	Medium	Exchange on auction day, in a physical auction house
Modern Method of Auction	3-5 months	75-90%	2-3% + entry fee + legal fees	Medium	Online bidding, more flexible completion
Online Estate Agents	4-7 months	85-100%	Fixed fee i.e.  £500-£1000 + legal fees	Very High	Self-manage viewings & marketing
Traditional Estate Agents	6-9 months	90-100%	1-3% + VAT + legal fees	High	Regular viewings, negotiations
Assisted Sale (with or without cash advance)	~12 months	100% +	Mortgage payments deducted + renovation costs	Low	Can have partial upfront payment, buyer handles all refurb costs

Advantages and Disadvantages of Property Auctions

Here are some of the main advantages of using an auction…

But it’s important to be aware of the negatives side too…

Managing Risks in Property Auctions

Setting the right reserve price is crucial for auction success. I always tell my clients to research recent local sales carefully. This helps protect their investment while attracting serious buyers.

Unsold properties can be challenging, but I’ve learned effective solutions. I recommend having a backup plan before the auction starts. This could mean considering private buyers or different selling methods.

Our research shows that most auction buyers fall into specific groups:

• Property developers seeking renovation projects
• Buy-to-let investors looking for quick purchases
• First-time buyers hoping to find bargains
• Cash buyers ready to move fast

I’ve seen withdrawal fees catch sellers by surprise. 

Most auction houses charge between 2-4% if you pull out. Always read the small print before signing anything.

Protecting Your Interests

Working with experienced auction houses makes a huge difference. I always suggest checking their track record first. 

This simple step has saved me from many problems.

The right legal preparation matters more than most people think. I make sure all my documents are ready before listing. This prevents last-minute issues that could affect the sale.

Remember, successful auctions need careful planning and expert guidance. 

I’ve learned that rushing decisions often leads to problems later.

Costs and Fees When Selling at Auction

Most auction houses charge between 2-3% of the final sale price. 

So if you house sells for £200k you can pay £4-6k in fees.  

I always tell my sellers to factor this into their calculations. This helps avoid any nasty surprises later on.

The legal pack is essential but often catches people out. I’ve seen costs range from £300 to over £1,000. Get quotes from several solicitors before choosing one.

Hidden Costs to Watch

We recently saved £2,000 on marketing fees. Some auction houses include promotion in their commission. Others charge extra for professional photos and listings.

Here’s what I recommend checking before signing up:

• Entry fees and their refund policies
• Reserved parking space charges at auction venues
• Withdrawal fees if you change your mind
• Extra costs for premium catalogue positions
• Insurance requirements during the process

‘No sale, no fee’ sounds great but needs careful checking. I always read the terms thoroughly. 

Some houses still charge for marketing if your property doesn’t sell.

Remember, understanding these costs early helps avoid problems later. I’ve seen too many sellers caught out by unexpected fees.

Finding the Right Auction Partner

I’ve worked with many auction houses across the UK. Let me share what makes some stand out from others.

Good auction houses check their buyers carefully. I always ask about their vetting process. This helps prevent sales falling through later on.

Experience in your property type really matters. I look for:

• Proven sales of similar properties
• Knowledge of local market values
• Strong buyer databases
• Clear communication systems
• Professional marketing approaches

Making Your Choice

I check recent success rates before choosing any auction house. This tells me more than their promotional materials ever could.

The right marketing support makes a huge difference. 

I’ve seen properties achieve 20% more with good promotion. Professional photos and detailed descriptions attract serious buyers.

Local knowledge matters more than most people think. 

I prefer houses that know my area well. They understand what local buyers want.

Always ask about their buyer reach. Although, I’ve found that bigger databases don’t always mean better results. Quality matters more than quantity.

Look for clear, upfront fee structures. I’ve never regretted spending time understanding costs properly. This prevents surprise charges appearing later.

Remember, choosing the right auction house affects your final price. 

I always take time to research options carefully.

How to Prepare Your Property for Auction

I’ve helped prepare hundreds of properties for successful auctions. Let me share what I’ve learned about making homes auction-ready.

Getting the paperwork right makes all the difference. 

I always start with Land Registry documents. These prove ownership and show any restrictions clearly.

The legal pack needs careful attention from day one. I make sure mine include:

• Up-to-date property searches
• Recent energy performance certificates
• Building regulation approvals
• Planning permission documents
• Any relevant lease information

Setting the Right Price

I use recent local sales to set realistic guide prices. This helps attract serious buyers who know the market well.

Reserve prices need smart planning. 

I suggest setting them at 80-85% of market value. 

This gives enough room to attract serious bidders.

It’s important to get an accurate and up to date market value, rather than another house you’ve seen up for sale on Rightmove. 

Top tip- the best way to do this for free is to use Rightmove sold prices to find comparable properties that have sold within half a mile radius from yours in the last 6 months. 

Setting viewing times needs careful planning. I recommend block viewings twice weekly. This creates more competition between potential buyers at each viewing.

The right certificates matter more than most people think. I always check:

• Gas safety records
• Electrical installation reports
• Asbestos surveys if needed
• Building warranties where applicable

Don’t forget about presentation. 

I’ve seen clean, tidy properties achieve 15% more. Small improvements can make a big difference to buyer interest.

Remember, proper preparation prevents poor performance. I’ve never regretted spending time getting these details right.

But I have regretted not doing them!

Understanding the Auction Day Process

I’ve attended hundreds of property auctions as both buyer and seller. Let me walk you through what really happens on the day.

Arriving early makes everything easier. 

I always register at least an hour before. This prevents any last-minute rushing or stress.

The bidding process moves faster than most people expect. I’ve seen properties sell in under two minutes. Keep focused and stick to your maximum price.

Here’s what happens when the hammer falls:

• The buyer must pay a 10% deposit immediately
• Contracts are exchanged there and then
• Insurance becomes your responsibility straight away
• You’ll get a fixed completion date (within a month)
• Missing payments can mean losing your deposit

After the Auction

Most auctions require completion within 28 days. I always make sure my finances are ready when I’m buying. This prevents any costly delays or problems.

If your property doesn’t sell, don’t panic. 

It’s possible to find buyers afterwards. Auction houses often have interested parties ready to negotiate.

Remember, successful auctions need proper preparation and understanding. I’ve seen too many people struggle by not knowing these basics.

Bonus tip- keep your solicitor’s number handy on auction day. 

Sometimes you’ll need quick legal advice about unexpected issues.

Why Choose Property Buyers Today Instead of Auction

To be totally honest with you, selling a house at auction takes more work than most people think. 

It’s easy to watch “Homes Under the Hammer” and think, yeah I could do that.

However, selling your home doesn’t have to be complicated, stressful, or time-consuming. We’ve transformed the traditional property selling process into something simple and certain.

Here’s why thousands of homeowners choose Property Buyers Today for their sale: