Selling property at auction

Selling at auction suits a particular type of sale like properties that are unusual, need work, or where speed and certainty matter more than squeezing every last pound out of the price. Once a bid is accepted the buyer is legally committed, there is no chain and completion typically follows within 28 days.

But the process works very differently from a standard sale, and the legal preparation has to happen before the auction, not after. This guide explains how it works, what your solicitor does, what it costs and what to watch out for.

Auction is not the right route for every property or every seller. It tends to work well when one or more of the following apply:

• The property is unusual, hard to value or unlikely to get mortgage lending — things like derelict buildings, properties with structural issues, short-lease leaseholds or commercial premises
• You need a fast, certain sale and cannot afford a long chain or a buyer who pulls out
• The property has attracted little interest on the open market
• You are selling an estate or investment portfolio and want a clean, transparent process

The competitive bidding environment can also push the price above what you might achieve through a private sale, though this is never guaranteed and depends on how much interest the property generates on the day.

As a seller it is worth understanding the difference, as it affects your timeline and what buyers expect.

Traditional auction

At a traditional (unconditional) auction, contracts exchange immediately when the winning bid is accepted. The buyer pays a 10% deposit on the day and must complete within 28 days. As the seller you get speed and certainty and once that bid is accepted the transaction is legally binding.

Modern method auction

The modern method (conditional auction) is an online auction and gives buyers more time. You have 28 days to exchange contracts and a further 28 days to complete, 56 days in total. The buyer pays a non-refundable reservation fee on the day rather than a deposit.

The longer timeline makes the modern method more accessible to buyers who need a mortgage, which can widen your pool of potential bidders. The trade-off is that it takes longer to complete and there is a small window between the reservation fee and exchange where the transaction is not yet legally binding.

This is where a lot of sellers are caught out. In a standard sale the legal work happens after a buyer is found. At auction it has to be done beforehand and the legal pack must be ready before the property goes into the catalogue.

Preparing the legal pack

Your solicitor prepares the auction pack, which the auctioneer makes available to prospective buyers and their solicitors before the auction takes place. A well-prepared pack gives buyers confidence, reduces the risk of queries after auction day and gives your property the best chance of selling.

The pack typically includes:

• Official copies of the title register and title plan from HM Land Registry
• Conveyancing searches (local authority, environmental, drainage)
• The Property Information Form (TA6) and Fixtures and Fittings Form (TA10)
• Special conditions of sale
• Leasehold documentation if applicable, including service charge accounts, ground rent details and any planned major works

The special conditions of sale are drafted by your solicitor and sit alongside the standard auction conditions. They cover anything specific to the property like whether the buyer is required to reimburse search costs, any known restrictions or obligations, and the completion date.

Timeline for sellers

Instructing your solicitor early gives them enough time to prepare the pack properly. As a rough guide:

• Allow 4 to 6 weeks from instructing your solicitor to having a complete legal pack ready for the auctioneer
• The auctioneer typically needs the pack 2 to 3 weeks before the auction date
• After a successful sale, completion follows within 28 days (traditional auction) or 56 days (modern method)

The whole process from instruction to completion can be as little as 8 to 10 weeks, depending on the auction house's schedule and how quickly title and searches come back.

After the auction

Once the winning bid is accepted your solicitor handles the post-auction completion, is receiving the deposit, dealing with any requisitions, transferring the title and arranging the transfer of funds to you on completion day.

Our auction conveyancing solicitors cover the full process from legal pack preparation through to completion.

The main costs to budget for are:

• Entry fee: typically £300-£600 as auction fees, covering the catalogue listing and marketing. Some auction houses collect this upfront, others on exchange.
• Seller's commission: usually 2-2.5% of the sale price, deducted from proceeds on completion. Some auction houses operate on a no-sale no-fee basis so make sure to check before you sign.
• Conveyancing fees: for preparing the legal pack and handling post-auction completion. Get a fixed fee quote before committing to an auctioneer so you know the full picture.
• Searches and disbursements: the cost of obtaining conveyancing searches. These can sometimes be passed to the buyer via the special conditions of sale, but check with your solicitor.

Fees vary between auction houses and the figures above are indicative.

The guide price is what the auctioneer advertises to attract bidders. It is typically set slightly below what you hope to achieve to encourage competitive bidding.

The reserve price is the minimum you will accept. It is confidential between you and the auctioneer and the property will not sell below it. If bidding does not reach your reserve, the lot is withdrawn and you can decide how to proceed, relist, negotiate with interested parties or consider a different route to sale.

Your auctioneer will advise on both figures based on comparable sales and their experience of the local market. It is worth getting an independent valuation as well so you have a clear view of what the property is worth before you set the reserve.

Your solicitor does not need to be present on auction day as the legal work is already done. The auctioneer runs the bidding process and, if a bid meets or exceeds your reserve, the lot is sold.

At a traditional auction the buyer signs the contract and pays the 10% deposit immediately. At a modern method auction the buyer pays the reservation fee and the exchange process follows over the next 28 days.

Either way, once the sale is agreed your solicitor takes over to manage the completion within the required deadline.

The property might not sell

If bidding does not reach your reserve price the lot is withdrawn. You may still owe the auctioneer their entry fee and any marketing costs regardless of whether the property sells.

The buyer might fail to complete

At a traditional auction the buyer forfeits their 10% deposit if they do not complete on time, which provides some financial protection. But you will need to re-list the property, which takes time and costs money.

You might undersell

If there is limited interest on the day, competitive bidding may not materialise and the property could sell at or just above the reserve. Setting the right reserve price matters.

The legal pack may raise issues

If your solicitor identifies title problems, missing documents or unresolved restrictions during pack preparation, these need to be resolved before the auction. Problems that come to light late can delay the auction date or affect buyer confidence.

Yes. Unlike a standard sale, the legal work at auction happens before a buyer is found and a poorly prepared legal pack can put buyers off or cause problems after the sale. Your solicitor is not just doing paperwork, they are presenting your title to the world and anything missing or unclear will show up when buyers' solicitors review the pack.

Feel free to call us on and we'll be happy to advise or guide you.