As more homes are bought and sold via auction, consumers are being urged to fully understand the process so they can gain maximum benefit, according to Stuart Collar-Brown, President of NAVA Propertymark (National Association of Valuers and Auctioneers).

Property auctions continue to grow in popularity, offering buyers speed and transparency and providing sellers with greater certainty around timescales. However, experts highlight that preparation is essential to get the very best from the system.

Stuart Collar-Brown

Stuart Collar-Brown said:

“Property auctions can be a highly effective way to buy or sell a home, but they work very differently from traditional private treaty sales. For buyers, the key advantage is certainty; once the hammer falls, the sale is legally binding. That also means there is far less room to change your mind, so doing your homework in advance is crucial.”

For buyers, this includes reviewing the legal pack thoroughly, arranging secured finance ahead of time, and understanding the full costs involved, such as deposits, reservation fees, and completion deadlines.

There are two kinds of auction processes to be aware of: firstly, an unconditional auction, which means that at the drop of the hammer, you are legally bound to purchase the property, and the transaction must be fully completed, typically within 28 days.

However, there is also a conditional auction (also referred to as a modern method of auction) where, on the fall of the hammer, you agree to reserve the property via payment of a reservation fee. If all pre-agreed conditions are met concerning the property, you must exchange on the transaction within 56 days with completion mutually agreed between buyer and seller. However, it is important to acknowledge that should you not fully complete the conditional auction transaction, you risk losing the agreed reservation fee on the property.

“Buyers should always read the legal pack provided very carefully and seek professional advice where needed,” Stuart continued. “This will highlight important information such as freehold/leasehold terms, special conditions of sale, and any restrictions that could affect the property. Having assured finance, or alternative finance in place, can also help avoid last-minute issues.

“With an unconditional auction, if needing a mortgage to secure a property, you must act before bidding begins. Because traditional auction completions typically require payment within 28 days, standard mortgage processes are often too slow. You should consider consulting both a mortgage expert and a bridging loan lending specialist, as bridging loans are a faster method of securing finance against a property. Mortgage experts will be able to specifically handle the financial aspects to secure an unconditional mortgage offer and confirm the property is “mortgageable”, and bridging loan experts can identify lenders capable of meeting the strict 28-day completion deadline.

“If a standard mortgage cannot be finalised in time, or the property requires significant renovation and is what is classed as “unmortgageable”, a bridging loan acts as a short-term, high-speed funding solution and can act as a ‘plan B’ in case your mortgage process and funds are unable to meet the desired timeframe. It allows you to complete the purchase, and you can then refinance to a standard long-term mortgage once the property is habitable”, Stuart added.

Sellers, meanwhile, are increasingly drawn to auctions due to their speed and certainty, particularly in a market where chains can collapse, and a high percentage of sales fall through.

“For sellers, auctions offer a transparent and structured process with fixed timescales,” said Stuart. “This can be especially beneficial for those selling probate properties, chain-free homes, or properties that may struggle to sell through traditional routes. Setting a realistic guide price, based on professional valuation advice, is key to attracting interest and achieving a successful outcome.”

With online and livestream auctions now commonplace, consumers also have greater access than ever before, but should remain cautious.

“While technology has made auctions more accessible, the fundamentals remain the same,” Stuart said. “Whether bidding in a room or online, buyers and sellers should only work with reputable, regulated auctioneers and agents who follow recognised professional standards.”

Stuart concluded:

“When done correctly, property auctions can deliver speed, transparency and confidence for all parties. The most successful auction experiences come from being well-informed, financially prepared, and supported by qualified professionals such as those who are members of NAVA Propertymark.”