Yes, when they are set up correctly. Auctions have largely moved online, but the core advantage has not changed: speed, certainty, and competitive tension. The agents who win with auctions are the ones who front load the legal work, educate bidders, price honestly, and manage the process with discipline.
What “auction” means today
Live (unconditional) auctions:
Bids are taken in real time, usually online. When the hammer falls, the buyer has exchanged contracts. A 10% deposit is paid immediately and completion is typically required within 28 days. This suits motivated vendors, chain breaks, refurb projects, short leases, and tenanted stock.
Tender or sealed bids (auction by advertisement):
You set a marketing window and a deadline. Buyers submit blind bids and the seller picks a winner at or after the deadline. With a complete legal pack you can make this effectively unconditional on acceptance. Without it, the sale remains subject to contract.
Conditional or modern method auctions:
The buyer pays a reservation fee and gets a longer window, often up to 56 days, to exchange and complete. This widens the buyer pool but trades some certainty for flexibility.
Why auctions still work for agents
• Speed and certainty: Exchange at hammer fall or on acceptance for unconditional tenders cuts fall through rates compared with private treaty.
• Serious buyers only: Upfront KYC checks and deposits filter time wasters.
• Transparency: Clear rules and visible competition build vendor trust.
• Competitive tension: Sensible guides and well managed increments can outperform private treaty, especially for problem or value add stock.
• Vendor control: Dates and terms are set in advance and renegotiations are rare.
Where agents and buyers get burned
• Guide versus reserve confusion: A teaser guide can create buzz, but if it is divorced from a realistic reserve you will upset bidders and vendors. Be explicit: the guide is indicative; the reserve protects the vendor and is set in advance.
• Last minute guide hikes: Raising the guide a week out, after buyers have downloaded packs, creates ill will. If you must adjust, notify every registrant promptly with the rationale.
• Emotional bidding: Buyers who have not set a maximum walk away price are prone to overbidding and buyer’s remorse. Publish and reinforce bidder rules.
• Mortgage assumptions in unconditional sales: Mortgages can be too slow for 28 day completions. Educate buyers early: cash, private funding, or bridging are the norm here.
• Thin legal packs: Missing searches or vague special conditions invite post auction disputes. Get your solicitor to build a complete, transparent pack before launch.
The legal pack and why it makes auctions fast
One reason private treaty can take 14 to 16 weeks is that legal work starts after an offer. Auctions reverse this. Title documents, searches, special conditions, leases or ASTs, EPC, planning and licensing, and anything material such as restrictive covenants, defects, or non standard construction are disclosed upfront. Buyers can exchange with confidence, and you complete quickly because the investigation is largely done.
Pricing: guides, reserves, and expectations
A guide price is a marketing signal, not a promise. The reserve is the lowest price at which the seller will exchange, usually set within a defined tolerance of the guide. Very low guides, for example £15,000 for a lot that should achieve £150,000 to £200,000, will spark bidding wars but can also waste everyone’s time. Align vendor expectations early, document the strategy, and avoid teaser guides that you will have to raise later.
Buyer preparation you should publish in every listing
• Set your maximum price before you bid and stick to it. Run the numbers calmly: Walk away price = after works value minus refurb costs minus fees minus contingency minus target profit.
• Have a solicitor review the legal pack early. Budget £80 to £150 for a quick review.
• Understand completion deadlines and finance. For unconditional auctions, cash, private funds, or bridging are safest.
• Bring two forms of ID and funds for the deposit. When the hammer falls, you have exchanged. Defaulting usually means losing your 10% deposit.
On the day and immediately after
Start on time, restate the bidder rules, and announce any addenda to the legal pack. Keep bidding increments steady and, for online sales, use brief extensions to prevent last second sniping. Once the hammer falls, issue the memorandum of sale immediately and take the deposit and ID checks before anyone leaves the room or logs off. Introduce solicitors the same day and push for a two week completion target to leave headroom before day 28
When auctions are the right call
• Probate, part refurb, and complex stock where transparency helps
• Short leases or complex legals, if disclosed fully in the pack
• Tenanted investments and chain break solutions
• Motivated vendors who prioritise speed and certainty over testing the market
They are not a shortcut for weak marketing or unrealistic pricing. The win comes from honest guides, complete legal packs, and a crisp, fair process.
How LetsBid supports agent controlled auctions
• Launch in minutes: Run a live online auction or sealed bid tender under your own brand.
• You set the rules: Guides, reserves, deadlines, increments, and bidder terms are fully configurable.
• Compliance built in: KYC and AML checks, bidder registration, deposit handling, and a full audit trail.
• Legal pack hub: Upload, version, and publish addenda instantly.
• Bidder experience: Real time bidding with anti sniping extensions and transparent logs.
• Instant paperwork: Auto generate memorandums of sale when the hammer falls.
• Marketing and analytics: Shareable listing pages, email assets, and live metrics on views, legal pack downloads, registrations, and bids.
Auctions are absolutely still worth it for prepared agents. Front load your legals, educate buyers, set guides and reserves that make sense, and run a clean process. Do that and you will deliver the speed and certainty vendors value, without the drama.
Want to run your next auction under your own brand?
Book a free LetsBid demo to see how quickly you can launch an agent controlled auction with full compliance, live bidding, and instant memorandums of sale.
