How to Auction a House in 7 Steps (And What to Expect With MMoAs)

Selling by auction certainly has its perks. You get a relatively quick, chain-free sale, with little-to-no risk of being gazundered.

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The process, however, can seem a bit daunting. There’s a lot to figure out, between auctioneering agreements and reserve prices.

Read on to learn how to auction your house in 7 simple steps. In this guide, we also compare the modern method with traditional auctions.

Step 1: Check Your Property’s Auctionability

Auctions are generally a good option for homes in need of remodelling or those with mortgage challenges. But there are risks.

You won’t have to accept a bad price (we’ll cover the reserve price in a minute). However, if your property passes in at an auction, you might have to lower your expectations. After all, potential buyers might wonder why the property didn’t sell.

So, sit down and evaluate your property. Proceed if you see that the house has clear potential to add value to a base of mostly cash buyers.

Step 2: Pick an Auctioneer

You could work with an auction house or an auction department within an estate agency. Both can be valid choices, and here’s how to choose the best auctioneer for the job:

- Study the Portfolio. See the properties they auctioned recently to get a sense of the type of buyer this auctioneer attracts.
- Compare prices. Your auctioneer may charge around 2.5% of the sale, but you should also ask about additional costs, like advertising.

Get an Appraisal. Check if they offer no-obligation appraisals.

Once you pick an auctioneer, you can start sorting out the finer details. Make sure to read through the terms and conditions with a fine comb, paying attention to the fee structure, viewing conditions, settlement timeline, and how non-paying bidders are handled.

Step 3: Set a Guide and Reserve Price

Next, you need to set rough guidelines for bidders, along with a safety net. The guide price acts as the former, while the reserve is the latter.

Here’s a closer look at the two auction prices:

	Guide Price	Reserve Price
Purpose	An indication of what you think the property is worth	The minimum acceptable price
Relation to Bids	Bids can be lower, higher, or equal to this price	If all bids are lower, the property doesn’t sell
State	Released publicly	Kept confidential

It’s worth noting that reserve prices are typically set within 10% of the guide price.

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Step 4: Consult a Solicitor

To auction your property, you need a legal pack.

The legal pack, as the name implies, is a bundle of legal documents. And they’re essential because the nature of auctions binds buyers to the bids they place. It’s only fair that every prospective buyer has access to basic information about the property before bidding.

A specialised lawyer can review your case and provide advice on which documents must be included in the pack. That said, most sellers need:

Copies of the title register and title plan
Energy Performance Certificate
Local Authority Search information
Special conditions of sale
Property Information Form (TA6)

Step 5: Keep an Eye on the Marketing and Prepare for Viewings

Odds are, your auctioneer will handle the marketing aspect of the auction prep. This includes everything from photographing the house and erecting “for sale” boards to listing the property online.

What you should do here is monitor their marketing efforts. Check that all the marketing material (photographs, floor plans, etc.) is accurate and of high quality.

You can inquire about their targeted marketing efforts. Is the auctioneer showing your house to subscribers who’ve shown interest in similar properties? Are they listing your property on major search portals as well as their catalogue?

Your auctioneer will likely arrange and conduct the viewing (open house or virtual), too. So, you don’t have to worry about that.

If you’re willing to put in some work, consider “prepping” the house. Decluttering, trimming the hedges, adding a pot of flowers, or brewing some coffee for the aroma can go a long way.

Step 6: Don’t Settle Too Soon

At some point, a buyer might try to persuade you to sell before auction day. It might be in your best interest to let it all play out and let the prospective buyers try to outbid one another.

Step 7: Complete the Sale

The moment the hammer falls, the price is confirmed.

Now, you enter the contract exchange period, which typically lasts around 20–28 days. Expect to receive the full sale value and change ownership during that timeframe.

Traditional vs. Modern Auctioning: 3 Key Differences

The Modern Method of Auction (MMoA) auctions are becoming an increasingly popular alternative to traditional auctioning.

MMoA is a conditional sale process, where the fall of the hammer itself isn’t binding. Instead, winning bidders pay a fee and get an exclusive period to actually buy the house.

Here’s what to expect if you opt to sell your property via an MMoA:

Lower Costs: You’ll cover fewer fees.
Longer Timeframe: You may find a buyer in 30 days and complete within 56 days.
Smaller Buyer Pool: Some buyers tend to favour traditional auctions. If you go with MMoA, expect fewer bids.