Property Auction House and RICS Registered Valuer
Next Auction:
23/10/2025
Property Auction House and RICS Registered Valuer
Next Auction:
23/10/2025
Unpacking the Truth Behind Auction Prices
Selling property at auction is becoming an increasingly popular choice for homeowners, landlords, and developers across the UK. But one common concern still lingers:
"Do properties sell for less at auction?"
The answer isn't a simple yes or no — because auction sales depend on a range of factors including the property type, condition, marketing strategy, and pricing expectations. In this article, we'll explore the pros and cons of selling at auction, when you might achieve less than market value - and when you might get even more.
Auctions often attract buyers looking for:
Because of this, there's a perception that auction properties sell below market value. And yes, in some cases, that's true — but it depends on why the property is being sold and how the auction is handled.
1. Condition or Mortgageability
Properties with major defects (e.g. structural issues, Japanese knotweed, or no bathroom/kitchen) may only appeal to cash buyers or developers — reducing competition and price.
2. Urgent or Forced Sales
If a seller needs a quick sale (e.g. due to repossession, divorce, or debt), they may accept a lower price to guarantee completion.
3. Limited Marketing or Exposure
An auction with poor marketing, low footfall, or unclear legal documents can deter buyers — which may lead to fewer bids and a lower final price.
4. Overestimated Reserve Price
If the reserve (the minimum the seller is willing to accept) is set too high, the property may not sell at all. If it does, it might only attract cautious bidders.
Auctions don’t always mean low prices — in fact, the right property in the right setting can outperform private treaty sales.
1. Competitive Bidding
Auctions create urgency. If multiple bidders are interested, a bidding war can drive up the price — sometimes above the market value.
2. Unique or Rare Properties
Unusual homes (such as historic buildings, plots of land, or properties with development potential) often do better at auction because the market sets the price through open competition.
3. Clear Legal Packs and Transparency
A well-prepared auction legal pack builds trust and confidence, helping buyers to bid with certainty — and more aggressively.
4. Strong Marketing by a Reputable Auctioneer
Good auction houses invest heavily in marketing your property, targeting cash buyers, developers, and investors who are ready to move quickly and pay fair prices.
| Criteria | Auction | Estate Agent Sale |
|---|---|---|
| Speed | Fast (often 28 days to complete) | Slower (average 2–4 months) |
| Certainty | Legally binding on fall of the hammer | Sales can fall through |
| Market Reach | Attracts cash-ready, serious buyers | Broader pool, including mortgaged buyers |
| Price Control | Reserve price protects you | Offers can fall short or collapse |
| Potential Price | Can be lower or higher than market | More predictable, but slower |
It can, but not always — and not necessarily for the reasons you might expect.
Auction sales may result in lower prices only when:
But when done right, auctions can deliver strong prices, faster results, and greater certainty than private sales. In some cases, sellers walk away with more than they would’ve accepted on the open market.
Selling at auction doesn't automatically mean selling at a discount. With the right approach, a property can achieve full — and sometimes exceptional — value under the hammer. The key is preparation, pricing strategy, and working with experienced auction professionals.
If you're considering selling at auction and want advice on valuation, legal prep, or auctioneer selection — speak to a solicitor or property advisor early on.
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