Selling at Auction: A Strategic Choice, Not Always a Red Flag
When people hear that a property is being sold at auction, they often jump to the conclusion that something must be wrong with it. But that’s a common misconception! Selling at auction is simply a different way to buy and sell homes—one that can actually offer many benefits.
Whether it’s for speed, convenience, or reaching a wider pool of buyers, auction sales are becoming more popular for perfectly good properties. So, don’t assume there’s a problem just because the home is going under the hammer—it might just be the smartest way to sell.
What Is an Online Property Auction?
These days, almost everything can be done online—including property auctions! Instead of gathering in a room, the auction takes place on a live stream and is open for bids 24/7 until the pre-set end time. It’s convenient, flexible, and you can follow the action from anywhere.
How Is It Different from a Traditional Auction?
In a traditional property auction, everything happens in a physical auction house. Sellers choose the venue, sometimes paying more in hopes of getting a better sale price.
A lot of the basics are still the same in an online auction. You still set a reserve price (that’s the lowest price you’re willing to accept), but it’s kept private. All anyone sees are the opening and current bids.
The buyer still pays a reservation fee, although it’s good to know that if they back out, you don’t get to keep it.
One of the biggest differences? You can watch bids come in live online—super transparent! Plus, online auctions open up your property to a much bigger pool of potential buyers, and they can place bids at any time of day. The downside? You don’t get that exciting, in-person atmosphere that sometimes pushes bids higher.
And instead of a physical hammer drop, the auction ends when the online time limit is reached—as long as the reserve price has been met.
Why Are Online Property Auctions So Popular Now?
It really started during 2020, when COVID-19 made in-person events tricky. Online auctions were the perfect workaround, letting people buy and sell property safely.
But even beyond that, they’ve continued to grow in popularity—and for good reason. They’re faster than the traditional route, which can take months. If you’re keen to secure a sale quickly and avoid delays, online auctions are a great option.
They’re also super convenient. Busy schedule? No problem. You don’t have to be available at a specific time or date—just hop in when it suits you. That kind of flexibility is a big part of what makes online auctions so appealing today.
How Do Online Property Auctions Work (UK)?
If you’re thinking of selling your property through an online auction, you’ll usually have two options to choose from:
Unconditional (Traditional) Auctions
This is the faster-paced option. As soon as the virtual gavel “falls,” contracts are exchanged immediately. Completion (when the sale is fully wrapped up) usually takes place within 28 days. It’s a great route if you’re after a quick, guaranteed sale.
Conditional Online Auctions
This option gives buyers a bit more breathing room. Instead of exchanging contracts right away, the winning bidder gets extra time—typically around 40 days or more—to get everything sorted. This flexibility can attract more interest from buyers, especially those who need time to arrange finances.
No matter which option you go for, there’s one thing that stays the same: buyers must enter their payment details before taking part. That way, if they win, their deposit can be taken immediately—no hold-ups, no hassle.
Overall, the whole process is designed to keep things smooth and efficient, helping you avoid the common delays of traditional property sales.
What Are the Pros and Cons of Online Property Auctions?
Like any method of selling or buying a home, online property auctions come with their own set of perks and a few things to consider. Here’s a quick look at the ups and downs:
✅ Pros for Sellers
- Speedy Sales – Once the auction ends and the reserve is met, things move quickly. No waiting around for months!
- Serious Buyers Only – With upfront registration and deposits, you’re dealing with buyers who are ready to commit.
- Wider Reach – Online platforms allow people from all over the UK (and beyond!) to view and bid on your property.
- Transparent Process – You can see bids as they happen, and so can buyers. Everything’s out in the open.
- No Chain Hassles – Since buyers must commit quickly, there’s much less risk of the dreaded property chain collapse.
⚠️ Cons for Sellers
- No Guarantee of Sale – If the reserve price isn’t met, your property won’t sell.
- Limited Time to Attract Bidders – You’ll need to market well before the auction closes to generate interest.
- Potential for Lower Offers – If there’s low demand or little competition, the final bid might be lower than expected.
✅ Pros for Buyers
- Convenience – Bid from anywhere, at any time, even in your pyjamas!
- Clear Deadlines – You know exactly when the auction ends, and how long you have to complete the purchase.
- Access to Unique Properties – Auctions often feature homes not available through traditional sales, including investment opportunities or fixer-uppers.
- Potential Bargains – Especially if competition is low, you might walk away with a great deal.
⚠️ Cons for Buyers
- Less Time for Due Diligence – Things move fast, so you need to review all documents and do inspections quickly (before you bid).
- Non-Refundable Fees – If you pull out after winning, you lose your deposit or reservation fee.
- Bidding Pressure – It can be competitive, and emotions can run high. Set a budget—and stick to it!
Is an Online Auction Right for You?
Online property auctions can be a fantastic option—but they’re not the perfect fit for everyone. That said, there are certain situations, sellers, and types of properties where auctions really shine.
Let’s explore when an online auction might be the right move:
Sellers Who Need a Quick Sale
One of the biggest benefits of online auctions is the speed. If you’re in a situation where time is of the essence, this route could be ideal.
Here are a few examples where a fast, secure sale might be a priority:
- Relocating or moving area – You don’t want your move to fall through because your property hasn’t sold in time.
- Probate sales – Where an estate needs to be settled promptly.
- Downsizing – Especially if you’ve already found your next place.
- Financial difficulties or debt – A quick sale can help ease money worries.
- Avoiding a property chain – Speedy completion and less chance of delays.
In uncertain markets, auctions can offer peace of mind thanks to their efficiency and reliability.
️ Properties That Struggle on the Open Market
Let’s be honest—some properties just aren’t made for traditional sales. The good news? Auctions can be a perfect place to find the right buyer.
Online auctions are well-suited for:
- ️ Homes needing renovation or complete rebuilds
- Short leasehold properties
- Properties with structural issues
- Homes with high service charges or ground rents
- ️ Ex-council homes
- Unmortgageable properties (great for cash buyers!)
- Commercial or mixed-use properties
- Homes in less desirable or overlooked areas
- Unique or unusual properties
These types of homes can often sit on the market for ages—or get little interest at all through an estate agent. But auction buyers are often on the lookout for just these kinds of opportunities, especially if they’re investors, developers, or bargain hunters.
In short, if your property is a bit of a tough sell, or you simply need things wrapped up quickly and smoothly, an online auction could be just what you’re looking for.
Should You Sell Your Property at Auction?
Selling at auction can be a great choice for many—but it’s important to know if it suits your situation. Here’s a quick checklist to help you decide:
✔️ You might want to sell at auction if:
- You need a fast, guaranteed sale
- Your property is unusual, requires work, or hard to value
- You want to reach a wider pool of buyers quickly and easily
- You’re comfortable with setting a reserve price and letting the market decide
- You prefer a transparent and straightforward process
- You don’t want to deal with the uncertainty and delays of traditional sales
❌ Selling at auction might NOT be for you if:
- You want more control over the timing and negotiation process
- You’re looking for the absolute highest possible price, and can wait for the right buyer
- You don’t want to commit to immediate contract exchange (for unconditional auctions)
- You aren’t comfortable with upfront fees or deposits from buyers
- Your property is in high demand and likely to sell quickly through traditional methods
If you’re still unsure, chat with a local auctioneer or estate agent—they can give you advice tailored to your property and goals.
Tips for online auctions
Decided this is the method of selling is for you? Here are some top tips to help the process go as smoothly as possible:
- Think very carefully about your reserve price. What is the lowest you’re willing to sell it for?
- Resist any pressure from others (e.g. estate agents) to set your reserve price low to secure an easy sale
- Be aware that you can roughly expect to sell the property for 70-80% of its market value
- Have all your legal documents ready before opening your auction to bids
- How long you advertise your property for is key (it can be 30 days from the date your auction goes online)
- A shorter period of time will guarantee speed, if that’s essential
- A longer period of time might help generate higher bids
- Ensure your home looks its best in the photos/videos
- Don’t just go with the first online auction platform you see advertised – weigh up your options
- Work with your estate agent, they’ll be able to help you
I hope this post is useful to you. Please do let me know if you have anything to add, and I will gladly consider it and add to the article if it helps my readers and don’t forget, if you need further advice/assistance or would like to reach out you can find my contact details below.
Josephine – Your Trusted London Property Partner
Tel : +44 (0) 7491 430055
email: [email protected]
Josephine Dayan is a member of Laurel Leaf Networking.