Selling by Auction Versus a Property Buying Company?

Home: Auction Link » Selling to a Property Buying Company V’s Auction

Updated: 18th January 2026

1. An Overview of the Two Sale Methods

When selling a property in the UK, two commonly considered alternatives to a traditional estate agent sale are selling to a property buying company and selling by auction.

A property buying company (often marketed as a “quick house sale” or “we buy any home” service) typically offers to purchase a property directly, usually with cash, promising speed and convenience. The sale takes place via a private treaty process, meaning it follows the standard conveyancing route used in England and Wales.

Selling by auction involves exposing the property to the open market, where buyers compete publicly. The sale is governed by a defined legal framework: once the hammer falls, contracts are exchanged immediately and the sale becomes legally binding.

Both routes have their place. However, they operate very differently in practice, particularly when it comes to pricing, certainty, transparency and risk.

2. How Property Buying Companies Operate

Property buying companies are commercial operators whose primary objective is to acquire property at a discount to open market value and then resell, refinance, or trade that asset for profit. In simple terms, their business model relies on buying low, minimising risk, and maximising margin.

Offers are typically generated following an initial desktop valuation, often based on online data, comparable sales, and headline assumptions about condition. This may later be supported by a site visit, inspection, or formal survey – sometimes very late in the transaction.

In practice, property buying companies tend to operate using one of the following models:

• Direct cash purchaser – the company uses its own funds to buy the property outright, without relying on mortgage finance.

• Investor‑funded buyer – the company sources capital from third‑party investors, often on a deal‑by‑deal basis.

• Bridging‑finance model – short‑term lending is used to complete the purchase, with refinancing or resale planned post‑completion.

• Broker or deal‑sourcer model – the company does not buy the property itself, but instead secures an exclusivity period and attempts to assign the deal to another buyer.

The distinction between these models is crucial for sellers. A genuine cash buyer has control over the transaction. A brokered or investor‑dependent model introduces additional layers of risk and uncertainty.

In many cases, sellers are presented with an attractive initial or “headline” offer, followed by a period of conveyancing during which surveys, valuations, or funding checks take place. Because the transaction is conducted by private treaty, the buyer is not legally committed until exchange of contracts. This creates scope for:

• Late renegotiation on price

• Revised terms following a survey

• Delays caused by funding or third‑party approval

• Withdrawal from the transaction altogether

Private treaty sale: late-stage negotiations are common practice

While there are honest and transparent operators who explain these risks clearly and price realistically from the outset, the sector as a whole is not specifically regulated. Beyond general consumer protection law and voluntary membership of redress schemes such as The Property Ombudsman, any company can operate as a property buying business.

For sellers, this means the onus is very much on them to carry out due diligence, understand how the buyer is funding the purchase, and recognise that until contracts are exchanged, the agreed price is not guaranteed.

3. How Property Auctions Work

Property auctions are a structured and transparent way to sell, underpinned by a robust legal process. They are commonly used by professional sellers and frequently recommended by solicitors when clients need a quick and dependable sale.

At the outset, the seller agrees two key figures with the auctioneer:

• Guide price – an advertised figure designed to attract interest and encourage competition. It is not necessarily the expected sale price.
• Reserve price – a confidential minimum price agreed between the seller and the auctioneer. The property cannot be sold below this level, ensuring the seller is protected from underselling.

Before the property is offered for sale, a legal pack is prepared by the seller’s solicitor. This typically includes:

• Official copy of the title register and plan
• Searches (local authority, drainage, environmental, where available)
• Special conditions of sale
• Leasehold documentation (if applicable)
• Any relevant notices, licences or tenancy agreements

The legal pack is made available to prospective buyers in advance of the auction. This shifts responsibility for due diligence onto the buyer and significantly reduces the scope for post‑sale disputes or renegotiation.

On the auction day itself, bidding takes place openly, either in a physical auction room or online. Buyers compete against one another in real time, creating genuine market tension. When the highest bid meets or exceeds the reserve price:

• The hammer falls and contracts are exchanged immediately
• The buyer pays a non‑refundable deposit, usually 10% of the purchase price
• A fixed completion timetable is set, typically 20–28 days from the auction date

From a seller’s perspective, this process offers clarity and certainty. Once the property is sold at auction, the price is fixed, the buyer is legally committed, and the risk of withdrawal or renegotiation is removed entirely.

4. Speed of Sale: Perception vs Reality

Property buying companies often advertise extremely fast sales, sometimes claiming completion within 14–28 days. In theory, this is possible. In practice, however, these timelines are frequently extended and can prove misleading.

Common causes of delay when selling to a property buying company include:

• Late instruction of surveys or formal valuations
• Internal approval processes within the buying company
• Renegotiation of price following inspections or valuation reports
• The buyer not being legally committed until exchange of contracts

As a result, a sale that was initially presented as a quick and certain solution can drift well beyond the advertised timeframe – or fail altogether.

Auctions, by contrast, involve more preparation at the outset, but offer a fixed and predictable timetable once the property is entered into the sale. Key features of the auction timeline include:

• A clearly defined marketing period
• A fixed auction date
• Immediate exchange of contracts on the fall of the hammer
• A legally enforceable completion date, typically within 20–28 days

In many real‑world cases, a correctly priced auction sale can be just as fast – and often more reliable than a private sale to a property buying company. While auctions may not promise instant completion, they remove uncertainty and replace it with a clear, enforceable timetable that sellers can plan around with confidence.

5. Certainty of Sale and Legal Commitment

The most important distinction between the two routes is legal certainty – in other words, when the sale actually becomes legally binding.

In a private treaty sale (which includes sales to property buying companies), neither party is legally committed until exchange of contracts. Until that point:

• The buyer can withdraw from the transaction entirely
• The buyer can reduce their offer, even at a very late stage
• The seller has no legal recourse if the buyer changes their mind
• Time, legal costs and momentum can be lost with no guarantee of completion

This lack of commitment is not a flaw in the system – it is simply how property law operates in England and Wales. However, it does expose sellers to uncertainty, particularly when dealing with profit‑driven buyers who may seek to improve their position late in the process.

By contrast, auction sales provide immediate legal commitment. When the hammer falls:

• Contracts are exchanged instantly
• The buyer is legally bound to complete
• A deposit (usually 10%) is paid immediately
• The completion date is fixed and enforceable
• There is no scope for renegotiation on price or terms

For sellers, this distinction is critical. Auction removes the risk of last‑minute changes and replaces uncertainty with a clear, legally enforceable outcome. Once sold, the deal is done.

6. Price Transparency and Market Competition

Property buying company offers are typically made behind closed doors and are negotiated privately between the seller and the buyer. As a result, it can be difficult for sellers to assess whether the price being offered genuinely reflects market value.

Key limitations of private, off‑market pricing include:

• No direct comparison with competing buyers

• Reliance on the buyer’s own valuation assumptions

• Limited visibility of true market demand

• Difficulty benchmarking the offer against real, completed sales

By contrast, auction pricing is market‑led and transparent. Value is established through open competition, with multiple buyers bidding against one another in real time. This process offers several advantages:

• Prices are set by genuine demand, not negotiation tactics

• All bidders have equal access to information

• The final sale price is visible and verifiable

• Sellers can be confident the market has been properly tested

When a property is priced competitively, auction creates competitive tension and momentum, which in many cases results in a sale that is both fair and reflective of true market conditions.

7. The Risk of Late Price Reductions

Late‑stage price reductions are one of the most common and most damaging issues experienced by sellers dealing with property buying companies.

In our experience, a significant proportion of enquiries we receive come from property owners who have been let down at the last minute. They were initially promised a strong price and a smooth, fast sale, only to face a substantial reduction in the agreed figure after weeks or even months of progress. By that stage, the promises have evaporated and valuable time has been wasted.

This typically happens because some property buying companies adopt a deliberate strategy:

• A high headline offer is made to outbid competitors and secure the seller’s commitment
• The property is taken off the market, limiting the seller’s alternatives
• Surveys or “formal valuations” are delayed until late in the process
• The offer is then reduced – sometimes days before exchange of contracts

Because the sale is proceeding by private treaty, this behaviour is perfectly legal under English property law. The buyer knows that, by this stage, the seller may be under time pressure or emotionally invested, making it harder to walk away.

The practical consequences for sellers can be severe:

• Months lost with no completed sale
• Increased legal and abortive costs
• Reduced negotiating power
• Pressure to accept unfavourable terms simply to move on

It is precisely for this reason that many sellers, after being let down by a property buying company, turn to auction as a fairer and more reliable alternative. Auction removes the ability to renegotiate after the sale.

Under auction rules:

• The price is agreed by the market on the day
• Contracts are exchanged immediately
• The buyer cannot reduce their offer after the hammer falls

For sellers who value certainty and transparency, auction provides a clear solution to the problem of late‑stage price negotiations.

8. The Impact of the Private Treaty System in England & Wales

The private treaty system used in England and Wales is inherently inefficient from a seller’s perspective. Importantly, both property buying companies and traditional estate agency sales operate entirely under this same private treaty framework. Until exchange of contracts, there is no legally binding agreement between buyer and seller, regardless of how much time, money, or effort has already been invested.

In practical terms, this means:

• An accepted offer is not legally enforceable

• Either party can withdraw at any point before exchange

• The buyer can change the price or terms late in the process

• There is no automatic compensation for wasted time or costs

This legal structure enables a range of risks that sellers frequently encounter, including:

• Gazundering – where the buyer reduces their offer shortly before exchange

• Deal collapse – where the buyer pulls out entirely with little warning

• Late renegotiation – often justified by surveys, valuations, or funding issues

These risks disproportionately affect sellers dealing with profit‑driven buyers, such as some property buying companies, who may actively use the flexibility of the private treaty system to improve their negotiating position.

While the system allows flexibility, it also places the burden of risk squarely on the seller. By contrast, auction sales operate outside this framework: contracts are exchanged immediately, the price is fixed, and the opportunity for last‑minute changes is removed entirely.

9. Headline Offers vs Achievable Prices

A genuine property buying company will usually offer 70–80% of open market value. This discount reflects the buyer’s need to factor in profit margin, holding costs, risk, and the convenience they are offering the seller. Offers that significantly exceed this range should be treated with caution.

Headline offers can be misleading, particularly in a highly competitive home‑buying market. Some companies deliberately start with an inflated figure to secure the seller’s interest, knowing that the price can be revised later under the private treaty process.

Common issues associated with headline offers include:

• Initial valuations based on optimistic assumptions rather than real market evidence

• High offers used to outbid rival buying companies

• Later reductions justified by surveys, formal valuations, or funding constraints

• Sellers discovering too late that the original figure was never realistically achievable

An inflated initial offer is meaningless if it is not deliverable. What ultimately matters is the price that completes, not the price that is first quoted.

Auction prices reflect what buyers are genuinely prepared to pay in an open and competitive environment. The final sale price is set transparently by the market on the day, without reliance on headline promises or subsequent renegotiation.

A Reality Check: Who the Buyer Is – and Why It Matters

Property buying companies fall into the category of purchasers buying an additional property. As a result, they are subject to the higher rate of Stamp Duty Land Tax, currently an additional 5% surcharge on top of standard rates. This additional tax burden has a direct impact on the price they are able – and willing – to pay.

In practical terms, this means:

• Property buying companies must factor the extra Stamp Duty cost into their offer
• The higher tax reduces the buyer’s net return and increases pressure to negotiate price
• The surcharge reinforces the need for buying companies to purchase at a discount

Auctions also attract buyers who are subject to the higher rate of Stamp Duty, such as investors and landlords. However, crucially, the auction market is not limited to this buyer group.

At auction, the buyer could be:

• An investor or developer
• A landlord expanding a portfolio
• An owner‑occupier buyer purchasing their only or main home

Owner‑occupiers are not subject to the additional Stamp Duty surcharge and may therefore be able to bid more aggressively for the right property.

When sellers ask, “Who will the buyer be at auction?”, the honest answer is simple: it could be anyone. The auction process is open to all, and the property is sold to the highest bidder, regardless of whether they are an investor or an owner‑occupier.

This broader buyer pool is one of the reasons auction can deliver stronger, more competitive outcomes than closed‑door sales to property buying companies.

10. Broker vs Genuine Cash Buyer

Some companies advertising as buyers are not buyers at all, but brokers or deal‑sourcers. Instead of purchasing the property themselves, they seek to control the sale by securing an exclusivity agreement or option contract, giving them time to trade the deal on to another investor.

In practice, this can introduce significant risk for the seller, including:

• No guarantee that a final buyer will be found

• Delays while the broker attempts to market the deal onward

• Increased likelihood of price renegotiation

• Loss of control over the sale process

Sellers should be extremely cautious if asked to sign anything other than documents issued by their own solicitor. Documents that should raise concern include:

• Exclusivity or lock‑in agreements

• Option agreements

• Assisted sale arrangements

• Any contract that restricts the seller’s ability to market the property elsewhere

Being asked to sign such documents is often a strong indication that the company is not buying the property directly.

A genuine cash buyer should be able to:

• Confirm in writing that they are purchasing the property directly

• Provide evidence that the purchase is being made with cash funds, not mortgage finance

• Proceed without requiring the seller to enter into side agreements or exclusivity periods

If a company cannot provide clear written confirmation of these points, sellers should assume they are dealing with a broker rather than a true buyer – and consider alternative routes, such as auction, where the buyer’s commitment is immediate and legally binding.

11. Fees, Costs, and Hidden Charges

Property buying companies often advertise “no fees”, but this can be misleading. While there may be no explicit invoice for fees, the company’s profit is built into the discounted purchase price.

In practical terms, sellers effectively pay for the service through:

• A reduced sale price compared with open market value
• The buyer factoring in profit margin, risk, holding costs, and Stamp Duty
• Limited ability to challenge or benchmark the true cost of the transaction

Some sellers only realise the true cost of a “no‑fee” sale when they compare the completed price with what could have been achieved through an open market sale.

Auction costs, by contrast, are transparent and agreed upfront. Sellers know in advance what fees will apply and under what circumstances. Typical auction‑related costs may include:

• An auction entry or listing fee (sometimes free)
• Legal costs associated with preparing the auction legal pack
• A commission payable only if the property sells

Many auction providers offer no‑sale‑no‑fee options, meaning sellers only pay the main selling fee if the property is successfully sold.

From a seller’s perspective, the key distinction is clarity. With auction, costs are explicit and measurable. With property buying companies, the true cost is embedded within the price – making it harder to assess value for money.

12. Property Condition and Buyer Appetite

Unmodernised and problematic properties are often targeted by property buying companies because they are perceived as easier to acquire at a discount. However, these types of properties are also the most commonly subject to late renegotiation.

Typical issues sellers face when dealing with property buying companies for unmodernised or problematic properties include:

• High initial offers based on optimistic assumptions about condition
• Later claims that the property requires more work than anticipated
• Surveys or valuations used as justification for reducing the agreed price
• Pressure on the seller to accept a lower figure late in the process

For sellers, this can be particularly frustrating, as the property’s condition is usually evident from the outset.

Key advantages of auction for unmodernised or problematic properties include:

• Buyers expect works and price their bids accordingly
• Competition replaces negotiation, helping establish fair market value
• No opportunity for post-sale price reduction
• A legally binding sale once the hammer falls

Rather than penalising the seller for a property’s condition, auction allows the market to assess the opportunity transparently and competitively.

13. Leasehold, Title, and Legal Complications

Leasehold issues, title defects and other legal complications can significantly deter private buyers, particularly those relying on mortgage finance.

Common legal and structural issues that cause problems in private treaty sales include:

• Short leases, especially those under 80 years, which can make properties unmortgageable
• High or escalating ground rents and onerous service charge provisions
• Restrictive covenants limiting use, alteration, or redevelopment
• Title defects, such as missing rights of way, unclear boundaries, or absent easements
• Absent or defective management companies in leasehold blocks

When selling via a property buying company or an estate agent, these issues often lead to:

• Reduced buyer interest
• Delays while legal points are investigated
• Increased risk of renegotiation on price
• Complete withdrawal by the buyer before exchange of contracts

Auction buyers, by contrast, expect complexity. Investors, developers and experienced purchasers attending auctions are accustomed to assessing legal risk and pricing it in from the outset.

Key advantages of auction for properties with legal or leasehold complications include:

• Issues are disclosed upfront in the legal pack
• Buyers carry out due diligence before bidding
• Legal risks are reflected in competitive bidding, not post-offer negotiation
• Once sold, the buyer cannot withdraw or renegotiate on the basis of known defects

For properties with short leases, title issues or legal complications, auction often proves to be a more effective and reliable route, allowing the market to absorb the risk transparently rather than leaving the seller exposed to uncertainty later in the process.

14. What Happens if the Property Doesn’t Sell

If a property fails to sell at auction, the seller retains full control and can reassess the next steps without being contractually tied to a buyer.

In practical terms, an unsold auction property gives the seller several options:

• Review and adjust the guide price or reserve based on market feedback
• Re‑enter the property into a future auction
• Consider alternative sale methods with a clearer understanding of demand
• Accept post‑auction offers on negotiated terms, if appropriate

Importantly, no sale means no binding commitment – but also no broken promises. The seller remains in charge of the strategy.

By contrast, a collapsed private treaty sale (property buying company or estate agent) can be far more damaging. When a buyer withdraws late in the process, sellers are often left:

• Back at square one after weeks or months of progress
• Having lost momentum in the market
• Facing wasted legal costs and abortive fees
• Under increased pressure if time‑sensitive circumstances apply

For many sellers, the predictability of auction – even when a property does not sell first time – is preferable to the uncertainty and disruption caused by a failed private sale.

15. Control, Flexibility, and Timelines

Property buying companies may appear flexible at the outset, particularly when they emphasise tailored completion dates or minimal seller involvement. However, in practice, sellers often lose leverage once exclusivity is granted or once the property has been taken off the market.

Key limitations on seller control when dealing with property buying companies can include:

• Pressure to agree to exclusivity or lock‑in periods
• Reduced ability to seek alternative buyers once negotiations are underway
• Timelines being driven by the buyer’s funding, surveys, or internal approvals
• Limited recourse if the buyer delays or changes terms before exchange

Although flexibility is marketed as a benefit, it often favours the buyer rather than the seller.

Auctions, by contrast, involve less flexibility upfront but offer far greater control once the process begins. From a seller’s perspective:

• The auction date is fixed in advance
• Marketing and legal preparation follow a clear timetable
• The seller retains control over the reserve price
• Once the property is sold, the completion date is fixed and enforceable

In short, auction replaces informal flexibility with defined structure and certainty. While sellers must commit to a timetable in advance, they gain clarity, predictability, and legal assurance once the sale is agreed.

16. Stress, Pressure, and Seller Experience

Private negotiations can involve pressure tactics and a high degree of uncertainty, particularly where sellers are dealing with experienced, profit‑driven buyers.

Common sources of stress for sellers in private treaty negotiations include:

• Repeated calls or emails pushing for quick decisions

• Pressure to accept revised terms late in the process

• Uncertainty around whether the buyer will actually proceed

• Anxiety caused by delays, surveys, or funding issues

• Emotional fatigue after weeks or months of negotiation with no guarantee of completion

For many sellers, this prolonged uncertainty can be as challenging as the financial risk itself.

Auctions, by contrast, are procedural, time‑limited and structured. While the lead‑up to the auction requires preparation, the process itself is clear and decisive. From a seller’s perspective:

• Timelines are known in advance

• The decision‑making process is compressed into a defined window

• The outcome is clear on the day of sale

• Once sold, there is no further negotiation or second‑guessing

This structure often reduces emotional strain. Sellers know where they stand, when the sale will complete, and can move forward with confidence once the hammer falls.

17. Risk of Gazundering and Deal Collapse

Gazundering – where a buyer reduces their offer shortly before exchange of contracts – is legal and relatively common in private treaty sales in England and Wales.

Because property buying companies and estate agency sales both operate under the private treaty system, sellers are exposed to this risk until the moment contracts are exchanged.

In practice, gazundering often occurs:

• After surveys or valuations are carried out late in the process

• When the buyer believes the seller is under time pressure

• When the seller has already incurred legal costs and emotionally committed to the sale

• Where market conditions have shifted during a prolonged transaction

The consequences for sellers can be significant:

• Sudden reductions in the agreed price

• Pressure to accept unfavourable terms to avoid starting again

• Loss of confidence and trust in the process

• Collapsed sales if the revised terms are rejected

Auction sales, by contrast, eliminate the risk of gazundering entirely. Under auction rules:

• The price is agreed openly on the day

• Contracts are exchanged immediately when the hammer falls

• The buyer cannot reduce their offer after the sale

• Failure to complete results in serious financial penalties for the buyer

For sellers who want to avoid last‑minute surprises and deal collapse, auction provides a level of protection and certainty that private treaty sales simply cannot offer.

18. When Selling to a Property Buying Company Makes Sense

Selling to a property buying company may be appropriate in a small number of specific circumstances, but it is important to apply a reality check.

In practice, most property owners do not need to use a property buying company. We have rarely seen experienced or well-advised sellers choose this route, and it is uncommon for estate agents or solicitors to recommend it as a first option.

It is also noteworthy that professional sellers – such as banks, asset managers, local authorities and other institutions – do not sell to property buying companies. Instead, they usually sell through auction, which is designed to provide an open and competitive route to market and to establish a transparent sale price.

That said, there are limited situations where a property buying company may offer some benefit:

• Where the seller absolutely does not want viewings (and only if the buying company genuinely does not require them)
• Where the seller cannot be chain‑free, and flexibility on completion timing is essential
• Where speed is required above all else, and the seller accepts a discounted price
• Where the seller is not concerned about achieving a fair or market‑led price, but prioritises convenience

Outside of these narrow scenarios, property buying companies are rarely the most appropriate solution. For the vast majority of sellers, auction provides the same benefits of speed and certainty – without the structural disadvantages, price uncertainty, or reliance on private treaty negotiations.

19. When Auction Is Often the Better Option

For transparency, competition, and legal certainty, auction is frequently the more reliable option – particularly for properties requiring work or those affected by legal or structural complexities.

In practice, auction is often better suited where sellers want the market to determine value fairly and conclusively. Key reasons auction is frequently the preferred route include:

• Open competition, ensuring the property is exposed to the widest possible pool of buyers
• Market‑led pricing, established by bidding rather than negotiation
• Immediate exchange of contracts, removing the risk of buyer withdrawal or renegotiation
• Fixed completion timescales, typically 20–28 days after the auction
• Transparency, with all buyers competing on the same terms and information

Auction is particularly effective for (but not exclusively for):

• Properties that require refurbishment or modernisation
• Assets with short leases, title defects, or legal complications
• Inherited, vacant, or non‑standard properties
• Sellers who value certainty over headline promises

Rather than relying on a single buyer’s opinion of value, auction allows the market to decide. The property is sold to the highest bidder on the day, providing clarity, finality, and confidence in the outcome.

20. How to Choose the Right Route for Your Situation

Selling a property is a major financial decision, and the route you choose can have a significant impact on the outcome. Sellers should take time to shop around, seek independent legal advice, and compare all available options before committing.

A useful decision‑making framework is to consider the following:

• How important is certainty of sale compared with headline price?

• Is speed genuinely critical, or simply desirable?

• Can you tolerate the risk of renegotiation or deal collapse?

• Are you prepared to accept a discounted price for convenience?

• Does the property have characteristics that suit competitive bidding?

Professional investors, banks, asset managers, local authorities and institutional sellers overwhelmingly choose auction as their disposal route. This is not accidental. Auction exists precisely to provide transparency, competition and legal certainty when selling property. Private sellers can – and often should – use the same mechanism.

A Note on Auction Types: Unconditional vs Conditional (Modern Method of Auction)

It is also important to understand that not all auctions are the same. We consistently recommend unconditional auction rather than conditional auction, commonly referred to as the Modern Method of Auction.

Under an unconditional auction (true auction rules):

• Contracts are exchanged immediately when the hammer falls

• The buyer pays a deposit on the day

• Completion usually takes place within 20–28 days

• The buyer is fully committed, with meaningful penalties for failure to complete

By contrast, a conditional auction (modern method):

• Does not involve immediate exchange of contracts

• Allows a prolonged reservation period after the bidding ends

• Re‑introduces many of the risks associated with private treaty sales

In our view, “conditional auction” dilutes the very purpose of auction. Without immediate exchange and legal commitment, it loses the key protections that make auction attractive to sellers in the first place.

Ultimately, the right choice depends on your priorities. The key is understanding the trade‑off between speed, certainty and price – and choosing the route that genuinely serves your interests, rather than one based on marketing promises or perceived convenience.

A useful tip

The quick house sale market is very competitive. To stand out from the crowd, some property buying companies advertise their services in a way that might be described as misleading.

If you have clicked an online advert, you might have only done so because the company’s advert offered a very compelling service. For example, if you searched “how to sell my house fast”, you might see an advert appear with the following headline:

“We pay 100% cash in 14 to 28 days”.

The catchy message encourages you click the link and submit your contact details to the property buying company. By the time you’ve engaged with the property buying company, it’s too late to check if the advert you clicked was really what you thought it to be.

For a company to state they “pay 100%” is quite confusing. The average person might think this means the company is paying full market value for their property in as little as 14 to 28 days. The advertiser will argue that they don’t actually pay 100% of market value, but whatever amount they do offer will be 100% cash.

Once you’ve clicked on the advert, it’s unlikely you will go back to question what you clicked on. Those advertising words are gone and never to be seen again?

Fortunately, there is a way to check on the adverts that a homebuyer company uses, so you can take the time to consider if you really want to do business with them, or in hindsight you feel you might be better off dealing with a more straightforward company.

For example, if you found the advert on Google you can click the link below and see the adverts the property company has been displaying.

Google Ads – check an advertisers message:
https://adstransparency.google.com/?region=GB

This is a really useful service provided by Google Ads. And other online platforms are improving the transparency of their advertisers too. It’s worthwhile checking whatever platform you used (or regularly use) to see in hindsight, if the advert you clicked was fair, or misleading.

Frequently asked questions

Is selling at auction better than selling to a property buying company?
It depends on the seller’s priorities. Auction offers transparency, competition and legal certainty, while property buying companies prioritise convenience and speed, often at a discounted price.

Will I always get a better price at auction?
Not always, but auction allows the market to determine the price through open competition. This often results in a fairer and more reliable outcome than a privately negotiated offer.

Are property buying companies guaranteed to complete?
No. Property buying companies operate under the private treaty system, meaning they are not legally committed until exchange of contracts and can withdraw or renegotiate before that point.

Why do property buying companies reduce their offer late in the process?
Late price reductions often occur after surveys, valuations, or funding checks. In some cases, high initial offers are used to secure the seller’s commitment before being revised later.

Is auction legally binding?
Yes. In an unconditional auction, contracts are exchanged immediately when the hammer falls, making the sale legally binding on the buyer and seller.

Who typically buys properties at auction?
Auction buyers can include investors, developers, landlords, and owner-occupiers. The property is sold to the highest bidder, regardless of buyer type.

What happens if my property doesn’t sell at auction?
If the property does not meet its reserve price, it remains unsold and the seller retains control. The seller can reassess pricing, re-enter the property into a future auction, or consider other options.

Are auctions only suitable for problem or distressed properties?
No. While auctions work well for properties with issues, they are also widely used for standard residential properties where sellers want certainty and transparency.

What is the difference between unconditional auction and the modern method of auction?
Unconditional auction involves immediate exchange of contracts. The modern method (conditional auction) does not, which reintroduces risks similar to private treaty sales.

Do I need to use a property buying company to sell quickly?
In most cases, no. Auction can provide speed and certainty without relying on private negotiations, and is the route used by professional sellers such as banks and institutions.

Request a free reserve price estimate

Contact us for guidance on selling your home by auction. Request a free pre-auction appraisal – we’ll be happy to help.

Selling by auction makes a refreshing change, there are no protracted negotiations or sales falling through. With an unconditional auction sale the property is sold to the highest bidder and the sale is legally binding. There is no opportunity for the buyer to reduce their offer or back out of the sale.

Need help from a solicitor?

Finding a solicitor is easy. Use the Law Society website to find a local solicitor:

England and Wales – find a solicitor on the Law Society website.

Scotland – find a solicitor on the Law Society of Scotland website.

Northern Ireland – find a solicitor on the Law Society of Northern Ireland website.

Other useful resources

Money Helper – Quick House Sales
Money Helper offers impartial guidance that’s backed by government. This guide offers tips and alternatives to selling to home buying companies.
Guide to selling a house by auction
Explains the stages involved in an auction sale. With information about auction sale costs, timescales and the process for selling at auction.
Carry out improvements before selling?
When selling a property in need of improvement, should I spend money on refurbishment works? Or leave the property as is, and let the new owner take care of improvements?
Poor condition property: Auction VS Estate Agent
The private treaty method of sale isn’t suited to some types of property – it’s inefficient and potentially open to abuse.

1.  Continue to market my property with an estate agent and sell at auction?
2.  Serving notice to your estate agent – what to expect!
3.  Selling at auction FAQ’s.
4.  Guide to selling a property at auction.
5.  Request an auction sale price estimate.