If your sale has fallen through and you need to move quickly, two options keep coming up: sell to a cash buyer, or put your home into an auction. Both can be faster and more certain than a normal sale. But they work very differently, and the right choice depends on your situation.
The three options
Selling to a cash buyer
A cash buyer, such as an investor, landlord or property company, buys without a mortgage. You agree a price, the solicitors do the legal work, and you exchange and complete, often within a few weeks.
- Price: usually below market value. Quick-sale offers commonly fall in the range of about 75% to 85% of market value.
- Certainty: good with a genuine, vetted buyer, though not binding until exchange.
- Timescale: flexible. Often a few weeks, and you can usually choose your completion date.
- Your costs: depends on the route. Some buyers pay your legal fees.
Traditional auction
Your home is listed in an auction catalogue with a guide price and a reserve (the minimum you'll accept). Bidding happens on a set day.
- Price: set by competition on the day. It can go above the guide, or fail to reach your reserve.
- Certainty: very high once the hammer falls. Contracts are exchanged immediately and the buyer pays a deposit, usually 10%.
- Timescale: completion typically within about 28 days of the auction, but you'll wait for the next auction date first, and your legal pack must be ready.
- Your costs: sellers usually pay auction fees, such as entry fees and commission.
Modern method of auction (conditional auction)
An online auction, often run through an estate agent. The winning bidder pays a non-refundable reservation fee, then usually has 28 days to exchange and a further 28 days to complete.
- Price: buyers often factor the reservation fee into their bids, which can lower what you receive.
- Certainty: lower than a traditional auction. It isn't binding until exchange. If the buyer walks away, they lose the reservation fee, but that fee goes to the auction provider, not to you.
- Timescale: around 56 days from the draft contract being received.
- Your costs: often low or nothing, because the buyer pays the fee.
Side by side
| Cash buyer | Traditional auction | Modern method of auction | |
|---|---|---|---|
| Binding when? | At exchange | When the hammer falls | At exchange |
| Typical timescale | A few weeks | About 28 days after auction day | About 56 days |
| Who pays fees? | Varies | Usually the seller | Usually the buyer |
| Price | Below market value | Set by bidding | Can be reduced by the fee |
| Risk of no sale | Low with a vetted buyer | Reserve may not be met | Buyer can still withdraw |
Which is right for you?
A cash buyer often suits you if:
- Your onward purchase has a firm date and you need to control the timing
- You want to agree a price now, not gamble on the day
- You'd rather not wait for an auction date
A traditional auction often suits you if:
- Your property is unusual, needs lots of work, or has legal quirks that put off mortgage lenders
- You want immediate legal certainty at a fixed point
- You can wait for the auction date and accept the risk of the reserve not being met
The modern method of auction often suits you if:
- You want an open, competitive sale with low upfront costs
- You don't need certainty until exchange
Whichever route you take, use your own independent solicitor, and compare the net amount you'll receive after all fees.
How Ready Set Sold helps
We're not a cash buyer and we don't run auctions. We act for you as your estate agent, bringing vetted cash buyers to you and helping you compare every offer, including auction or open-market options, so you can choose what works best. It's free for you: the buyer pays our sourcing fee on completion. Read our honest guide to cash buyers for more.
Frequently asked questions
Is auction faster than selling to a cash buyer?
Not always. A traditional auction completes about 28 days after the auction, but you have to wait for the auction date. A cash sale can complete within a few weeks of agreeing a price.
Do I get the reservation fee if a modern auction buyer pulls out?
No. The reservation fee is paid to the auction provider, not the seller.
Will I get more at auction than from a cash buyer?
Sometimes, if bidding is competitive. But there's no guarantee, and you'll usually pay auction fees, so compare the net figures.
Can I sell at auction if my sale has fallen through?
Yes, but you'll need an auction legal pack, and you'll have to wait for a suitable auction date.
Sources: HomeOwners Alliance: modern method of auction explained; Fosters Solicitors: modern method of auction; National Association of Property Buyers.