Selling a house at auction versus private sale offers distinct advantages depending on your circumstances, with auctions providing speed and certainty of completion within 30 days, while private sales often achieve higher prices but with greater uncertainty and longer timescales.
Property auction activity has surged dramatically in recent years, with properties offered at auction increasing by 45.1% in January 2024 compared to the same period the previous year. However, auctions still represent a small fraction of the overall market, with approximately 2.3% (or about 1 in 45) houses sold via auction in 2020. Success rates are encouraging though, with 78.3% of houses that go to auction selling successfully in the UK. Private sales remain the dominant method, but understanding both approaches helps you make the right choice for your situation.
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What Is a Private Sale When Selling Your House?
Private sales involve selling your property directly without using an estate agent, allowing you to retain full control over the process and avoid paying commission fees. This method works particularly well when you already know your buyer, such as selling to a family member, neighbour, or through word-of-mouth recommendations.
The private sale process requires you to handle marketing, arrange viewings, conduct negotiations, and manage the legal aspects yourself. While this saves the estate agent’s commission (around 1.5% of your sale value), it demands significant time and expertise that many sellers find challenging.
How Does Auctioning a Property Work?
Property auctions involve listing your house with an auction company who markets it to potential buyers over several weeks or months. Interested parties attend open days, arrange surveys, and prepare their maximum bids before auction day arrives.
On auction day, bidding starts at a reserve price you’ve set beforehand. The process is legally binding once the hammer falls, with successful bidders paying a deposit immediately and completing the purchase within 30 days. This creates certainty that private sales cannot match.
Comparing Sale Methods: Auction vs Private Sale
Understanding the key differences between these selling methods helps you choose the approach that best suits your property and circumstances. The following comparison highlights the most important factors to consider:
| Factor | Auction Sale | Private Sale |
|---|---|---|
| Timescale | 30 days from auction day | 8-16 weeks average |
| Price Certainty | Market-driven on the day | Negotiable over time |
| Buyer Commitment | Legally binding immediately | Subject to contract |
| Fall-through Risk | Zero after hammer falls | 33%+ fall-through rate |
| Commission Costs | Auction fees apply | No agent fees |
| Market Exposure | Targeted buyer audience | Broader market reach |
This comparison shows that auctions excel in speed and certainty, while private sales offer greater flexibility and potentially higher returns. Your choice depends on whether you prioritise quick completion or maximum price achievement.
Which Method Gets You the Best Selling Price?
Private sales often achieve higher prices than auctions, particularly when you have time to market properly and attract multiple interested buyers. The ability to negotiate terms, wait for the right buyer, and potentially create bidding wars between multiple parties can drive prices above initial expectations.
However, auctions can exceed expectations when properties have unique characteristics that are difficult to value or when multiple determined buyers compete on auction day. Properties with unusual features, development potential, or in sought-after locations sometimes achieve surprising results through competitive bidding.
Is It Faster to Sell at Auction or Privately?
Auctions are considerably faster than private sales, with completion occurring within 30 days of auction day. The entire process from instruction to completion usually takes 8-12 weeks, compared to private sales which average 8-16 weeks and can extend much longer if complications arise.
Private sales can be quicker in specific circumstances, particularly when selling to someone you know or when market conditions create immediate demand. However, the conveyancing process still requires 8-12 weeks regardless of how quickly you find your buyer.
Will My House Sell Better at Auction or Private Sale?
The answer depends on your property’s characteristics and your personal circumstances. Properties with structural issues, short leases, or unusual features often perform better at auction because buyers expect such challenges and price accordingly. Cash house buyers frequently attend auctions, making them ideal for properties that mortgage lenders might reject.
Private sales work better for standard residential properties in good condition, where you can afford to wait for the right buyer and potentially achieve a premium price. The broader market exposure and negotiation opportunities often justify the additional time investment.
What Are the Risks of Selling at Auction?
Auction sales carry specific risks that sellers must understand before committing. The most significant risk is not achieving your reserve price, resulting in an unsold property and wasted marketing costs. Unlike private sales where you can adjust your price strategy, auction failure requires starting the entire process again.
Setting the reserve price requires careful consideration – too high and you risk no sale, too low and you might achieve less than the property’s true value. Professional auction houses provide guidance, but the final decision rests with you.
What Are the Disadvantages of Private Sale?
Private sales face substantial fall-through risks, with over 33% of sales failing to complete. Buyers can withdraw at any point before exchanging contracts, potentially after months of negotiations and legal work. This uncertainty makes financial planning difficult and can be emotionally draining.
The time investment required for private sales is considerable, from arranging viewings to handling negotiations and coordinating with solicitors. Many sellers underestimate the work involved and find the process overwhelming, particularly when dealing with difficult buyers or complex chain situations.
Real-World Insights from Property Sellers
Property sellers who’ve experienced both methods share valuable perspectives that highlight the human reality behind these transactions. One seller noted that auctions provide complete transparency – you can see exactly what other buyers are willing to pay, unlike private sales where agents might exaggerate competing offers to drive up prices.
Another seller observed that auction pressure creates genuine commitment from buyers, eliminating the casual inquiries and time-wasters that often plague private sales. However, they also noted that auction success depends heavily on market conditions and timing, with quiet periods resulting in disappointing results.
These experiences reinforce that both methods have their place, but choosing the right approach for your specific situation makes all the difference between a successful sale and months of frustration.
How Much Does It Cost to Sell at Auction vs Privately?
Auction costs include entry fees, marketing expenses, and commission on successful sales, often totalling 2-4% of the sale price depending on the auction house and services required. These costs apply whether your property sells or not, making unsuccessful auctions expensive disappointments.
Private sales eliminate agent commission but require investment in marketing, legal fees, and your own time. The total cost depends on how long the property takes to sell and whether you need professional marketing support. Properties that sell quickly privately can be more cost-effective than auctions, while lengthy marketing periods can become expensive.
When Should You Choose Each Method?
Choose auctions when you need speed and certainty, particularly for properties with unique characteristics or condition issues. They’re ideal for time-sensitive sellers, those dealing with difficult-to-value properties, or when you want to avoid the uncertainty of chain complications.
Private sales suit sellers who can afford to wait for the right buyer and want to maximise their return. They work best for standard residential properties in good condition, where you have time to market properly and create competitive interest.
Why Property Saviour Offers the Best Alternative
At Property Saviour, we understand that both traditional selling methods have limitations that can leave you feeling frustrated and uncertain. Whether you’re considering auction pressure or private sale uncertainty, our guaranteed sale service provides a third option that combines the best of both worlds.
We offer the speed and certainty of auction sales with the fair pricing approach of private sales. Our experienced team evaluates your property quickly and provides a guaranteed cash offer with no hidden fees or surprise delays. You’ll know exactly where you stand from day one, with completion in as little as two weeks when you need it most.
If you’re facing time pressures, dealing with a unique property, or simply want to avoid the stress of uncertain sale processes, get in touch with Property Saviour today. We’re here to help transform your property sale from a source of anxiety into a straightforward, predictable transaction that gives you the certainty and peace of mind you deserve.
Sell with certainty & speed
Property Saviour Price Promise
- The price we’ll offer is the price that you will receive with no hidden deductions.
- Be careful with ‘cash buyers’ who require a valuation needed for a mortgage or bridging loan.
- These valuations or surveys result in delays and price reductions later on.
- We are cash buyers. There are no surveys.
- We always provide proof of funds with every formal offer issued.
We'll Pay £1,500 Towards Your Legal Fees
- No long exclusivity agreement to sign because we are the buyers.
- You are welcome to use your own solicitor.
- If you don’t have one, we can ask our solicitors for recommendations.
- We share our solicitor’s details and issue a Memorandum of Sale.
Sell With Certainty & Speed
- Our approach is transparent and ethical, which is why sellers trust us.
- 100% Discretion guaranteed.
- If you have another buyer, you can put us in a contracts race to see who completes first.
- Complete in 10 days or at a timescale that works for you. You are in control.
