Selling Your Home at Auction

If you're looking to sell your property at auction, it’s an ideal choice for those who need a quick sale and are open to accepting slightly below market value. In this guide, we’ll cover everything you need to know about selling your house at auction, including the costs, timeline, and benefits.

How Does the Auction Process Work?

The auction process is straightforward:

1. Choose an auction house: The first step is selecting a reputable auction house. They’ll market your home to attract potential buyers.
2. Set the guide and reserve prices: The guide price is set to generate interest, while the reserve price is the minimum you're willing to accept.
3. Prepare a legal pack: The legal pack includes key documents like title deeds and sale conditions that prospective buyers will review.
4. Auction day: Buyers place bids, and if the final bid meets or exceeds the reserve price, the sale goes ahead.
5. Completion: Once sold, completion usually takes place within 28 days.

Why Sell Your House at Auction?

Selling your house at auction can be a fast and secure alternative to traditional estate agents. Auctions are perfect for those who need to sell quickly and want to avoid long chains and unreliable buyers.

How Much Does an Auction House Charge?

Most auction houses charge between 2% to 3% of the final sale price, plus any additional marketing fees. These auction fees cover the listing in the auction catalogue, promotion, and the auction legal processes.

How Do I Choose an Auction House?

Look for an auction house with a strong reputation, especially for selling property by auction. Consider their marketing strategy and experience with the type of property you're selling. A good auction house will ensure your property is listed to attract a wide pool of buyers.

If you're looking for a recommendation, we partner with SDL Auctions, one of the UK's leading auction houses. They have a proven track record in achieving successful sales across a wide range of property types, and their extensive marketing ensures your property reaches serious buyers. Partnering with an established auction house like SDL gives you confidence that your sale is in expert hands.

How Long Does It Take to Sell at Auction?

One of the main benefits of selling at auction is the speed. In a traditional auction, the entire process from listing to completion typically takes 6-8 weeks. On auction day, once the gavel falls and your property is sold, completion follows within 28 days. For those who need a quicker sale, modern auctions provide more flexibility but still ensure the sale happens faster than through traditional estate agents.

Pros of a Property Auction Sale

• Quick sale: Selling through auction offers a quicker sale than traditional methods, with a typical timeframe of just 28 days after auction day.
• Serious buyers: Auctions attract committed buyers ready to move quickly.
• No chains: The sale is not dependent on other buyers in a property chain, reducing the risk of delays.

Cons of a Property Auction Sale

• Price: You may sell for less than market value.
• Auction fees: Costs associated with auction fees can reduce your final profit.
• No guaranteed sale: If the reserve price isn’t met, your property may not sell.

What Happens if a House Doesn’t Sell at Auction?

If your house at auction doesn’t reach the reserve price, it won’t sell. However, you can negotiate with the highest bidder after the auction or relist it for a future auction. Some properties are also re-listed in online auctions to continue attracting buyers.

Traditional Auction vs Modern Auction: What’s the Difference?

In a traditional auction, contracts are exchanged immediately after the highest bid is accepted, and completion occurs within 28 days. In a modern auction, the buyer pays a reservation fee and has 56 days to complete the purchase, allowing for a bit more flexibility while still offering a quicker sale than with estate agents.

How Do I Set the Reserve Price?

The reserve price is the minimum amount you’ll accept for your property. It’s confidential and ensures you won’t sell for less than you’re comfortable with. Setting a realistic reserve price helps attract serious potential buyers.

How Do I Set the Guide Price?

The guide price is the figure listed to attract interest and generate competitive bidding. It’s often lower than the reserve price to encourage more bidders.

How Quickly Will the Sale Proceed After Auction?

The beauty of auctions is the speed. After auction day, the buyer typically completes the purchase within 28 days, providing you with a fast, efficient sale.

Who Is Auction Best For?

Selling your house by auction is ideal for those who:

• Need a quick sale due to personal or financial circumstances.
• Are comfortable with selling below market value.
• Have a property that may struggle on the open market.
• Want to avoid the complications and uncertainties of traditional estate agents.

If speed, simplicity, and certainty are your priorities, selling your property at auction could be the right move for you.

Alternatives to Auction

While auctions are a great way to secure a fast sale, there are other options you might want to consider depending on your priorities.

Cash Buyers like Upstix:
If you're looking for an even quicker sale, companies like Upstix can be a great alternative to selling at auction. Upstix offers a cash purchase for your home, typically achieving around 85% of the market price, which is comparable to what you'd likely get at auction. However, with Upstix, the process can be completed even faster—sometimes in as little as seven days—making it the fastest way to sell your property.

Estate Agents for Maximum Price:
On the other hand, if your goal is to maximise the sale price and you're not in a rush, selling through an estate agent on the open market is probably your best option. Although this method can take longer and involve more uncertainty, it generally offers the highest potential price, especially in favourable market conditions.

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