Your Ultimate Guide to Selling a House at Auction

Need to sell your house in a hurry, no matter the location, condition and circumstances? Traditional estate agents may not be your best option. For a faster alternative, you might want to consider selling your house at auction. 

This route can create a buzz, interest and can sometimes be a lucrative option. You also have the advantage of the sale going through on the day of the auction, if all goes to plan, which can eliminate a lot of the uncertainty of traditional chains and sales. 

It may come as no surprise, then, that interest in property auctions has increased massively of late — there was an 11.3% increase in properties sold this way between 2021/22 to 2022/23. 

But selling a house through auction might not be the right choice for you, a cash house buyers may be a better solution, so before you take the plunge, read on.

Does auctioning your property mean a guaranteed sale?

No. 

There’s no two ways about it, there is no guaranteed sale at auction. 

As with (almost*) any sale, there are a number of factors beyond your control that mean a sale simply may not happen. These include your reserve price not being met, and not enough interest. 

Market demand, economic conditions, traffic on the day — all these can scupper your best-laid auctioneering plans. So, yes, auctions are exciting and potentially very profitable, but not always, not by a long stretch. 

You should also bear in mind that if your property doesn’t sell at auction, it might be harder to sell on the open market afterwards, as the guide price is often lower than what you’d actually put it on the market for. People may also be suspicious as to why it didn’t sell, and worry that they may not have noticed something that everyone at auction did. 

*We say almost because that isn’t the case with a cash sale from a “sell my house for cash” business like Sell House Fast. When we say it’s guaranteed we mean it quite literally. No ifs, no buts, it’s guaranteed.

What are the advantages and disadvantages of selling property at auction?

There are two sides to this coin, and it’s far from black and white, so let’s look at it from both angles.

The pros of selling property at auction

Your sale is much less likely to fall through than if it were sold through an estate agent (but it absolutely can still fall through — let’s not sugarcoat this). The sale, though, is binding. And that’s a huge advantage. 

It’s quicker than selling a property in the traditional way (i.e. through an estate agent). You can complete within a matter of weeks if all goes to plan. 

It tends to be competitive, which can push the price up — the very atmosphere and environment of an auction encourages higher bids.

The cons of selling property at auction

Uncertainty: As we’ve said above, there is absolutely no guarantee it will sell. 

There are fees: and if it doesn’t sell, that’s a waste of money. You pay for the auctioneers, but also the solicitor, the cleaning and the surveys. 

The prep work: Whether you’re cleaning and repairing it yourself or getting people in to help you, it’s a pain either way. Especially if it doesn’t sell. 

It can be stressful: Auctions are exciting, sure, but as the seller, they’re also nerve-wracking. 

The price: It can be higher, because of all the bidding excitement, but if it happens to snow, or a herd of cows escapes down the road and nobody can turn up, you’re less likely to get the price you want. 

The longer-term impact: The interest in your property post-auction is likely to be affected by the fact it failed to sell at auction. 

So, all in all, deciding whether auctioning your property is right for you, is something only you can decide. 

How much does selling at auction cost?

These can vary quite a lot, but there are a few certainties. Let’s go through the variables here.

Marketing and entry fees

Not all – but some – auction houses charge you to list your property. This will mean they’ll market and advertise on your behalf, which is obviously helpful, but it can be costly.

Commission for the auctioneer

You might not expect it to be the case, but this is often the greatest cost involved in the process. It’s calculated as a percentage of the final sale price, and the rates differ from auction house to auction house. Before you commit to an auction house, discuss this — but remember, the lowest commission may not be your best option, sometimes you pay for what you get and they’ll do a better job for your money. Not always, but it’s worthy of consideration.

Legal and admin fees

Solicitors, conveyancers, and legal processes abound — and they all cost money. You might also get charged admin fees by the auction house, for handling the whole process (it’s project management, of sorts).

Other anomalies

These can stack up. From repairs and improvements, to photography, floor plans and storage (if you need to leave in a hurry when your house sells at auction), there’s a lot to think about.

So, as you may or may not have surmised, the costs work out similar to those of selling in the traditional way, through estate agents. But the exact costs do vary depending on your chosen auction house, solicitor, area and agency.

Is selling a house at auction a good idea?

Honestly, it can be a great idea, and it can be a terrible idea. It completely depends on you, your property and your circumstances. But it’s not for us to say either way. 

To help you with your decision though, here are some key considerations:

What are the national and local market conditions?

A stagnant wider market can make an auction a better choice. A highly competitive property market can elevate the interest in (and indeed the price of) your property. But it’s worth thinking about. Check out other auctions to see what’s happening to properties similar to yours, to get an idea of what’s happening

What are your monetary goals?

Let’s be honest here, you’re selling your property because you’d like to make some money, but how much? And would it matter if you were compelled to sell at a much lower price than you’d ideally like to, or do you just want the property off your hands? How much do you actually want to make once all the fees have been paid …don’t forget that bit.

How high (or low) is your tolerance for risk?

There’s no two ways about it, selling at auction involves a bit of risk. But do you like that sort of thing? Do you in fact thrive of it and will you completely relish the entire process? Are you ok with the fact that your property might not sell, or sell for much less than you anticipated? Can you handle the brevity of your decisions and their outcomes?

Have you looked all the available options?

Auctioning your property is one of many options. There’s also online platforms, traditional estate agents, and cash house buyers like ourselves. The only right answer is the one that feels right for you. But explore all your choices before deciding which way to go.

To summarise

You don’t sell properties all the time (unless, like us, you’re in the industry) — but for the vast majority, who aren’t, it isn’t commonplace. So take the time to make the decision that’s right for you. 

Auctions are exciting, fast-paced, and can potentially result in a really quick sale, but, as we’ve outlined here, they have their disadvantages, so take stock of those before taking the proverbial plunge. 

The process isn’t supposed to be stressful and you shouldn’t develop poor sleeping habits/be driven to distraction by the whole thing. Believe it or not, it can be very quick and easy — and utterly devoid of stress. Trust us on this, because that’s the bit we specialise in. 

Why not get a free cash offer when weighing up your options? There are completely no obligations, so there’s absolutely no harm in finding out. 

Get in touch and we’ll talk about your specific needs and how we might be able to help.