Selling your house in the UK usually follows the same steps. You speak to an estate agent, get it listed on Rightmove, and then hope for the viewings to roll in. At some point, you might even be lucky enough to get an offer – and conveyancing begins.
Unfortunately, many people argue that this process is tired and outdated. House chains collapse on a regular basis, and some people feel like the stress involved with selling a house the ‘normal’ way is no longer worth it.
An alternative has moved into the gap left by a struggling system. And that alternative is selling at auction.
Every year in the UK, roughly 20,000 homes are sold by this way. It makes up just over 2% of all transactions, although some experts forecast this percentage to continue rising.
However, auctions aren’t the only alternative route; some sellers also consider quick-sale companies. If you’re weighing up both options, our We Buy Any Home vs Property Auction guide explains the key differences.
So, is selling your house at auction a last resort, or could it actually be the smartest move you make? Well, it mostly depends on your situation. Let’s get into it.
Take a step back in time…
Auctions are one of the oldest ways humans have ever sold anything. The Romans used them for years, and then Britain refined them.
By the 19th century, property auctions were a well-established part of English life. You often found this method of selling used when people wanted to offload estates, land and buildings. The benefit, even back then, was speed and transparency.
In the following century, though, auctions developed a slightly different reputation. Instead of being a ‘normal’ method of selling, it began to be associated with problem properties only. Fire-damaged houses, repossessions, short leases and legal nightmares all found their way into auction catalogues.
That wasn’t the end of auctions, though. They’ve experienced a new lease of life in the past few years.
Over the past decade, and particularly since Covid, auctions have quietly modernised. Online bidding is common with most auction houses, as is livestreamed rooms. You can download legal packs digitally, and the best companies tend to promote your house nationwide.
All of this has turned auctioning your house into an accessible approach, that’s far more likely to get decent results.
Today, you can bid on a house from your sofa, with buyers competing from across the country. And that shift has made auctions far more relevant to ordinary homeowners.
How does it really work?
It’s never fun when selling your house makes you want to tear out all your hair. And this is a common experience for anyone who goes down the ‘traditional’ route.
Meanwhile, at an auction, most of the work happens long before the hammer ever falls. This can make it easier to prepare for what’s about to come.
Once you decide to sell at auction, you choose an auction house and agree a guide price. This isn’t the price you’re guaranteed to get – it’s just a marketing tool to roughly signal where bidding might land.
Alongside this, you set a reserve price. This is the absolute minimum you are prepared to accept. If bidding doesn’t reach that number, the property is withdrawn and you don’t complete a sale.
Before the property is marketed, your solicitor prepares a legal pack. This includes title documents, searches, lease information if relevant, planning permissions and any special conditions. Buyers are expected to review this before bidding, which is why auction sales move so quickly once bidding ends.
The property is then marketed, usually for around six weeks. Viewings take place, surveys can be done, and buyers register to bid. On auction day, bidding opens either in a room, online, or both.
You usually exchange contracts immediately if someone makes a bid above the reserve price. This follows with a deposit, paid on the day. Completion must then occur within 28 days. Your buyer can’t back out without serious financial consequences.
From start to finish, an auction sale can take as little as eight to twelve weeks. In today’s market, that speed alone is enough to make many sellers think about it as a worthwhile alternative.
Unconditional vs Conditional Auctions
Not all auctions work the same way, and this is where confusion often creeps in.
The most common type of auction is an ‘unconditional auction’. This means that you exchange contracts once bidding finishes, and completion occurs about 4 weeks later. In other words, it moves fast and ensures your commitment on auction day.
The second type of auction is a ‘conditional auction’. This is a slightly more modern approach, growing in popularity. The winning bidder pays a reservation fee and commits to exchanging contracts within a set period – usually 28 days. You then get another 28 days to complete. This allows buyers more time to arrange mortgages, which is why around 70% of auction purchases now involve lending rather than pure cash.
For sellers, the modern method can offer a useful middle ground. You get commitment and structure without quite the same level of immediacy as an unconditional sale. Of course, it depends on how fast you want to get moving.
The good, the bad, and the outright bizarre
If you think that all property auctions are filled with tired fixer uppers – then think again. You often discover huge variety in the types of houses listed, and some of these are so bizarre that they even make the national papers.
One of the most famous recent examples was the Shropshire building that once housed the Temperance Hall Hotel. Sitting close to Shrewsbury town centre and right by the station, it arrived with planning permission for 27 homes and developers circling fast.
Then, in another bizarre story, an entire street went ‘under the hammer’. Terraces were bundled together with full consent for residential conversion, effectively offering investors a ready-made rental empire in one bold purchase.
A former Leicester nightclub was sold at auction, fully fitted and ready to go. It was later reborn as a Shisha Bar and Lounge.
History buffs will sometimes find a gem at an auction house, too. For example, a WW2 control tower commissioned under Churchill was sold at auction.
And over in the Cumbrian Dales, a fully intact 1958 nuclear bunker was auctioned with a guide price of £15,000 to £20,000 but actually sold for £48,000.
The main reasons people sell at auction…
You might give serious thought to selling at auction if you find yourself in a unique, or difficult, situation. The idea that auctions are for distressed sellers only is not accurate – it’s far more nuanced than that.
Auction sales give you speed, which are useful in plenty of instances. Perhaps you’re going through a divorce, or need to pay off considerable debt. Probate properties need to be sold within a set period (usually 6 months), too. And if you’ve got health issues that incur considerable fees, then selling your house fast can unlock the cash you need.
You’ll often see investors using auctions, too. These people aren’t necessary in a dire situation – they’re usually trying to get the attention of a developer, rather than a family. Don’t fall into the trap that all bidders must be cash buyers: 70% of properties sold at auction in 2022 were bought with a mortgage.
And it’s become increasingly common for ordinary homeowners turn to auction. This tends to occur after months of frustration with estate agents and collapsed chains – in other words, the outdated ‘traditional’ process.
What unites most auction sellers is a desire for certainty. As long as you set your reserve price fairly, you’re highly likely to get a bid, meaning that you’re only about 4 to 8 weeks away from completing the sale.
Setting your price is a careful art
If you’ve never sold at auction before, then you might find the pricing strategy slightly counterintuitive. You should probably speak to an expert in this area, like someone at the auction house. They’ve seen it all before, and can give you the clarity you need to proceed.
Unlike traditional sales, where a higher asking price often feels safer, auctions tend to thrive on momentum. Setting a realistic, sometimes deliberately low guide price can generate interest, competition and emotional bidding. In the right conditions, that competition can push prices well beyond expectations.
The reserve price is your safety net. Set it too high, and you risk scaring bidders away. Set it too low without understanding demand, and you may end up selling for less than you hoped.
Good auctioneers spend weeks gauging buyer interest, advising on strategy and adjusting expectations. You need to trust that process – because the auction house really does have your best interests at heart. By trying to control the auction from the sidelines, you’ll likely end up disappointed.
There are plenty of cautionary tales. You don’t always want to reject strong pre-auction offers in the hope of squeezing a little more out on the day – as this can sometimes backfire, and you end up worse off. Auctions reward realism and momentum, not stubbornness.
Do houses really sell for less at auction?
It’s no secret that houses sell for slightly less at auction, compared to the open market. The gap between those prices is almost never as big as you might expect, though.
And, most importantly, a house in poor condition is likely to sell at auction – which cannot be said on the open market, when a mortgage lender will probably slam the door in your face.
Yes, some properties sell below what a perfectly smooth, chain-free private sale might have achieved in an ideal world. Many homes sell for as much, or more, than their high street asking price.
What auctions remove is fantasy. There’s no room for overpricing, endless renegotiation or buyers who change their mind six months in. You’re left with the price the market is genuinely willing to pay, in real time, with real money.
In a slow or uncertain market, that clarity can be invaluable. And it allows you to move on to the next chapter in your life far more quickly.
Auctions shine a light on certain types of property
Some homes are simply better suited to auction than others. And 30% of lots coming up for auction have been in auction before – so you may see the same ones again, and again, and again.
Unusual buildings often do extremely well. The most common examples are old chapels, former pubs, control towers and odd plots of land. These attract attention and imagination of any worthwhile developer.
Run-down or damaged properties also suit auctions perfectly. The buyers expect work and factor it into their bid. As long as you’ve done the same when setting your reserve price, you’re onto a winner.
Even perfectly ordinary homes can perform well if demand is there and the pricing is right. The key is understanding who your buyer is and choosing an auction house with access to that audience.
It’s not all good… and it’s not all bad!
Selling your house at auction is neither entirely good, nor entirely bad. Your circumstances will determine whether it could be the ideal option.
Selling at auction offers speed, certainty and transparency. Once the hammer falls, the deal is done. There’s no gazumping, no chains and no buyer quietly disappearing two months later. If peace of mind post-auction day is what you’re looking for, you’re in the right place.
Don’t forget that auctions aren’t entirely risk-free, though. There’s no guarantee your property will sell, and you may have to accept a lower price than you hoped. Fees can be higher than traditional agents, and you give up control over who buys your home.
It’s not for everyone. And it shouldn’t be sold as a magic solution. As long as you’re realistic about auctions and the options they afford you, it can be a hugely positive experience.
So, could selling at auction be perfect for you?
If your priority is speed, certainty and a clean break, auction selling can be an excellent option. If your property is unusual, needs work, or has scared off traditional buyers, it can be transformative.
If you need top price above all else and have time to wait, a traditional sale may still suit you better. That brings in levels of stress that you’ll need to navigate, though.
The real mistake is dismissing auctions as a last resort without understanding how far they’ve come. In a market where sales fall through regularly and timelines are constantly getting stretched, the blunt honesty of an auction can feel refreshingly decisive.
Selling a house is rarely easy – but sometimes, standing in a room (or watching online) as the hammer comes down is the fast conclusion you’ve been needing.
If you’re interested in selling your home via auction, get in touch with us. We partner with a trusted auction house and can help you decide whether this route is the right option for your property.
