Modern Method of Auction Explained
The modern method of auction is a flexible way to sell property, but it comes with risks. Learn how it works, costs involved, and whether it’s right for you.
The Modern Method of Auction (MMA) is a property selling method that combines elements of a traditional auction with a private treaty sale. Unlike a traditional auction, buyers are given 28 days to exchange contracts and a further 28 days to complete the purchase, making it suitable for those who need to arrange a mortgage. While it offers a more structured selling process than the open market, it does not guarantee completion, so it’s important to understand both the benefits and the risks before choosing this route.
Why You Can Trust This Guide
At We Buy Any House, we’ve been helping homeowners across England and Wales since 2008. During that time, we’ve worked with sellers in a wide range of circumstances, including probate, divorce, inherited properties, buy-to-let investments, structural issues and homes that have struggled to sell through traditional estate agents.
We understand that choosing the right selling method can have a significant impact on how quickly your property sells, the level of certainty you achieve and the costs involved.
This guide combines our experience with current UK property guidance and industry best practice to help you understand how the Modern Method of Auction works and whether it’s the right option for your circumstances.
Every guide is:
- Reviewed by the We Buy Any House Property Team.
- Based on our experience helping homeowners since 2008.
- Prepared using current UK property guidance and publicly available information.
- Reviewed regularly to help ensure it remains accurate and up to date.
- Designed to provide general information rather than legal or financial advice.
Published: July 2026
Last Reviewed: July 2026
The Modern Method of Auction has become an increasingly popular way to sell property in the UK.
Often promoted as a flexible alternative to both traditional auctions and estate agent sales, it offers sellers a structured process while giving buyers more time to arrange mortgage finance.
Despite its growing popularity, many homeowners are unsure how the process works. One of the biggest misconceptions is that a successful bid guarantees a completed sale. In reality, the Modern Method of Auction differs significantly from a traditional auction, and there is still a period before contracts are exchanged when transactions can fall through.
Since 2008, our property specialists have spoken to many homeowners exploring different ways to sell their properties quickly. The Modern Method of Auction can be an effective option in some circumstances, but it isn’t the right solution for every seller.
In this guide, we’ll explain exactly how the Modern Method of Auction works, the costs involved, its advantages and disadvantages, how it compares with other selling methods and whether it’s the right choice for your situation.
Key Takeaways
- The Modern Method of Auction gives buyers longer to arrange mortgage finance than a traditional auction.
- Buyers usually have 28 days to exchange contracts and 56 days to complete.
- A non-refundable reservation fee is normally paid by the successful buyer.
- The process generally attracts a wider range of buyers than a traditional auction.
- Sales can still fall through before contracts are exchanged.
- Alternative selling methods may be more suitable if certainty or speed is your highest priority.
Who This Guide Is For
This guide is suitable if you:
- Are considering selling your property through auction.
- Want to understand the Modern Method of Auction.
- Are comparing different ways to sell your home.
- Need to sell within a structured timescale.
- Own a property that may appeal to investors or developers.
- Want to understand the costs and risks before making a decision.
What Is the Modern Method of Auction?
The Modern Method of Auction is a hybrid selling method that combines features of a traditional property auction with a conventional estate agent sale.
Unlike a traditional auction, where contracts are exchanged immediately when the auction ends, the Modern Method allows the successful buyer additional time to arrange finance and complete legal checks before exchanging contracts.
This makes the process accessible to a much wider group of buyers, particularly those who require a mortgage.
The process typically works as follows:
- The property is listed through an auctioneer or estate agent.
- Buyers register to bid.
- Bidding takes place over an agreed period.
- The successful bidder pays a non-refundable reservation fee.
- The buyer usually has 28 days to exchange contracts.
- Completion normally takes place within 56 days.
While the process provides more flexibility than a traditional auction, sellers should understand that the transaction is not legally binding until contracts have been exchanged.
Expert Insight from the We Buy Any House Property Team
One of the biggest misunderstandings we come across is that the Modern Method of Auction guarantees a completed sale as soon as bidding finishes. In reality, buyers are given additional time before exchanging contracts, meaning there is still some risk that the transaction may not complete.
How Does the Modern Method of Auction Work?
Although individual auction providers may have slightly different procedures, the overall process is generally similar.
Step 1: Property Valuation
The process begins with a valuation of your property.
An auctioneer or estate agent will recommend:
- A guide price.
- A reserve price where applicable.
- A marketing strategy.
- An estimated selling timescale.
The guide price is usually set competitively to encourage interest and generate bidding activity.
Step 2: Marketing the Property
Your property is then marketed in much the same way as a traditional estate agent sale.
This may include:
- Property portals.
- Auction websites.
- Professional photography.
- Floorplans.
- Property descriptions.
- Viewings.
The marketing period typically lasts between two and four weeks, although this varies depending on the property and auction provider.
Step 3: Buyer Registration and Bidding
Interested buyers register with the auction company before placing bids.
Most Modern Method auctions now take place online, allowing buyers to bid remotely throughout the auction period.
If bids are received close to the closing time, the auction may be automatically extended to allow further bidding.
This helps create a fair process and reduces the likelihood of last-second bids determining the outcome.
Typical Timeline
Although every transaction is different, a Modern Method of Auction sale often follows a timeline similar to the one below.
| Stage | Typical Timescale |
|---|---|
| Property valuation | 1–3 days |
| Marketing period | 2–4 weeks |
| Auction closes | Day 0 |
| Reservation fee paid | Immediately |
| Exchange of contracts | Within 28 days |
| Completion | Within 56 days |
Compared with the traditional property market, this provides a clearer structure while still allowing buyers time to arrange their finances.
What Is a Reservation Fee?
One of the biggest differences between the Modern Method of Auction and a traditional property auction is the reservation fee.
Once the auction has ended and a buyer has submitted the highest successful bid, they are usually required to pay a non-refundable reservation fee to secure the property.
This fee gives the buyer an exclusive period to progress the purchase without the property being remarketed.
The reservation fee varies depending on the auction provider but is commonly:
- Between 2% and 5% of the agreed purchase price.
- A fixed fee, often starting from £5,000.
- Subject to minimum fee levels set by the auction company.
It’s important for both buyers and sellers to understand exactly how the reservation fee works, as different auction providers have different terms and conditions.
Some buyers may factor the cost of the reservation fee into the amount they’re willing to bid, which can influence the final sale price.
Advantages of the Modern Method of Auction
The Modern Method of Auction has grown in popularity because it offers several advantages over both traditional auctions and conventional estate agent sales.
1. A Wider Pool of Buyers
Unlike traditional auctions, the Modern Method allows buyers additional time to arrange mortgage finance.
This means the property is accessible to:
- First-time buyers.
- Home movers.
- Buy-to-let investors.
- Buyers using mortgage finance.
- Cash buyers.
Having access to a larger buyer pool can increase competition and generate more interest in your property.
2. A Structured Selling Process
Although not as fast as a traditional auction, the Modern Method follows a clearly defined timetable.
Once the auction has finished, buyers are generally expected to:
- Exchange contracts within 28 days.
- Complete within 56 days.
Having agreed deadlines can provide more certainty than an open market sale, where completion dates are often less predictable.
3. Competitive Bidding
If multiple buyers are interested, competitive bidding can help increase the final sale price.
Rather than negotiating individually with buyers, the auction process allows bidders to compete openly throughout the auction period.
4. Reduced Upfront Seller Costs
Depending on the auction provider, some of the selling costs may be offset by the reservation fee paid by the buyer.
However, fee structures vary between providers, so it’s important to understand exactly which costs you’ll remain responsible for before instructing an auction company.
5. Suitable for a Wide Range of Properties
The Modern Method of Auction can be particularly suitable for properties that:
- Need renovation.
- Have attracted limited interest through estate agents.
- Appeal to investors.
- Have unusual characteristics.
- Require a quicker sale than the traditional market may offer.
Disadvantages of the Modern Method of Auction
Although the Modern Method offers several benefits, it isn’t suitable for every homeowner.
Before choosing this route, it’s important to understand the potential drawbacks.
1. Sales Can Still Fall Through
One of the biggest misconceptions about the Modern Method of Auction is that the sale becomes legally binding as soon as bidding finishes.
Unlike a traditional auction, this isn’t the case.
Because contracts are usually exchanged up to 28 days later, there remains a period during which the transaction may fail to proceed.
Although the reservation fee encourages buyer commitment, it doesn’t completely remove the risk of the sale falling through.
2. Completion Takes Longer Than a Traditional Auction
Traditional auctions usually require immediate exchange of contracts, with completion commonly taking place around 28 days later.
By comparison, the Modern Method generally allows:
- Up to 28 days to exchange.
- A further 28 days to complete.
This means the overall process can take approximately 56 days, making it slower than a traditional auction.
3. Reservation Fees May Reduce Buyer Interest
Some buyers are discouraged by the additional reservation fee, particularly if it’s a significant fixed amount.
As a result, some purchasers may:
- Decide not to bid.
- Lower their maximum bid to account for the fee.
- Choose properties being sold through traditional methods instead.
4. You May Not Achieve the Highest Possible Price
Although competitive bidding can increase prices, this isn’t guaranteed.
If buyer demand is limited, or if purchasers adjust their bids to reflect reservation fees, the final selling price may be lower than anticipated.
As with any selling method, the outcome depends on factors such as:
- Property condition.
- Local demand.
- Guide price.
- Marketing quality.
- Market conditions.
What Types of Property Are Best Suited to the Modern Method of Auction?
The Modern Method of Auction isn’t designed solely for distressed or unusual properties.
It can be suitable for a wide variety of homes, including:
- Buy-to-let properties.
- Probate properties.
- Empty homes.
- Properties requiring modernisation.
- Development opportunities.
- Non-standard properties.
- Homes that have struggled to sell through estate agents.
The process can be particularly attractive where a structured selling timetable is more important than achieving maximum exposure on the open market.
When Might the Modern Method of Auction Not Be the Best Option?
Although suitable in many situations, there are times when another selling method may be more appropriate.
For example, you may wish to consider an alternative if:
- You need an extremely fast completion.
- You require a guaranteed completion date.
- You cannot risk the sale falling through.
- Your property is likely to attract significant interest through a traditional estate agent.
- You’re uncomfortable with buyers paying reservation fees.
What We Commonly See
Since 2008, we’ve found that many homeowners initially choose the Modern Method of Auction because they believe it’s the fastest way to sell. In reality, sellers who need maximum certainty within a very short timeframe often find that a professional cash buyer provides greater confidence, as there’s no reliance on mortgage approvals or extended exchange periods.
What Does the Modern Method of Auction Cost?
Understanding the costs involved is just as important as understanding the process itself.
Different auction providers use different pricing structures, so always check the terms before committing.
Typical Seller Costs
You may be responsible for:
- Auctioneer or estate agent fees.
- Solicitors’ fees.
- Energy Performance Certificate (EPC) costs if required.
- Mortgage redemption charges.
- Property preparation or repair costs.
Typical Buyer Costs
Buyers commonly pay:
- Reservation fee.
- Solicitors’ fees.
- Stamp Duty Land Tax (where applicable).
- Mortgage arrangement costs.
- Survey fees.
- Removal costs.
The exact fees depend on both the property and the auction provider.
Modern Method of Auction vs Estate Agent
Choosing the right selling method depends on your priorities.
| Feature | Modern Method of Auction | Estate Agent |
|---|---|---|
| Buyer type | Investors, mortgage buyers and cash buyers | Wide range of buyers |
| Marketing period | Usually 2–4 weeks | Ongoing |
| Typical completion | Up to 56 days | Often several months |
| Buyer commitment | Reservation agreement | Offer accepted but not legally binding |
| Flexibility | Structured process | Greater flexibility |
| Risk of fall-through | Moderate | Moderate to high |
Modern Method of Auction vs Traditional Auction
Although both methods involve competitive bidding, they work very differently.
| Feature | Modern Method of Auction | Traditional Auction |
|---|---|---|
| Exchange of contracts | Within 28 days | Immediate |
| Completion | Up to 56 days | Usually around 28 days |
| Mortgage buyers | Yes | Less common |
| Buyer commitment | Reservation agreement | Legally binding immediately |
| Risk of fall-through | Moderate | Low |
| Buyer pool | Wider | More limited |
Modern Method of Auction vs Cash Buyer
Many homeowners comparing selling options also consider selling directly to a professional cash buyer.
| Feature | Modern Method of Auction | Cash House Buyer |
|---|---|---|
| Typical completion | Up to 56 days | As little as 3 days |
| Mortgage required | Often | No |
| Risk of fall-through | Moderate | Very low |
| Reservation fee | Yes | No |
| Property chain | Possible | None |
| Best suited for | Structured auction sales | Sellers prioritising speed and certainty |
Understanding these differences can help you choose the selling method that best matches your priorities.
Is the Modern Method of Auction Right for You?
The Modern Method of Auction can be an excellent selling option for some homeowners, but it isn’t the right choice for everyone.
The best selling method depends on your priorities, including how quickly you need to sell, how much certainty you require and the type of buyer you’re hoping to attract.
The Modern Method of Auction may be suitable if you:
- Want a structured selling process.
- Are happy to allow buyers time to arrange mortgage finance.
- Own a property that may appeal to investors or developers.
- Have struggled to sell through a traditional estate agent.
- Don’t need an immediate completion.
It may be less suitable if you:
- Need to sell within days rather than weeks.
- Require a guaranteed completion date.
- Cannot risk the buyer withdrawing before exchange.
- Want to avoid reservation fees that could discourage buyers.
- Need complete certainty because you’re buying another property or facing financial deadlines.
Expert Insight from the We Buy Any House Property Team
Since 2008, we’ve helped homeowners sell in a wide variety of circumstances. One of the biggest misconceptions we see is that there is a single “best” way to sell a property. In reality, the right selling method depends entirely on your circumstances. Someone selling an inherited renovation project may benefit from auction, while a homeowner facing repossession or relocating for work may place far greater value on speed and certainty.
Decision Guide
Not sure which selling method is right for you?
Use the guide below to compare your options.
Do you want to achieve the highest possible market price?
Yes
↓
A traditional estate agent may be the best starting point.
No or Speed Is More Important
↓
Is your property unusual, requires renovation or is likely to appeal to investors?
Yes
↓
The Modern Method of Auction or a traditional auction could be suitable.
No
↓
Do you need a guaranteed sale within a very short timescale?
Yes
↓
A professional cash house buyer may provide greater certainty.
No
↓
The Modern Method of Auction could offer a good balance between flexibility and structure.
Common Myths About the Modern Method of Auction
Myth: “It’s exactly the same as a traditional auction.”
Reality: Although both involve competitive bidding, the processes are very different. Traditional auctions require immediate exchange of contracts, whereas the Modern Method usually allows up to 28 days before exchange.
Myth: “Once the auction ends, the sale is guaranteed.”
Reality: While the successful buyer pays a reservation fee, contracts have not yet been exchanged. Until exchange takes place, there is still a possibility that the sale may not complete.
Myth: “Only cash buyers can purchase through the Modern Method of Auction.”
Reality: One of the biggest advantages of the Modern Method is that buyers usually have time to arrange mortgage finance, making it accessible to a much wider audience.
Myth: “The reservation fee forms part of the purchase price.”
Reality: Reservation fee arrangements vary between auction providers. Buyers should always read the auction terms carefully to understand exactly how the fee is treated.
Myth: “Every property is suitable for the Modern Method of Auction.”
Reality: Some properties and circumstances are better suited to estate agents, traditional auctions or cash buyers. Choosing the right selling method depends on your priorities and timescale.
Common Mistakes to Avoid
Homeowners considering the Modern Method of Auction often make similar mistakes.
Avoid the following where possible:
- Assuming the sale is legally binding immediately after bidding ends.
- Not understanding how the reservation fee works.
- Choosing an unrealistic guide price.
- Focusing only on speed rather than overall certainty.
- Failing to compare alternative selling methods.
- Not reading the auction company’s terms and conditions.
- Assuming every auction provider offers the same service or fee structure.
Taking time to understand the process before committing can help prevent costly misunderstandings later.
Practical Checklist
Before choosing the Modern Method of Auction, ask yourself the following questions:
✓ Do I understand how the reservation fee works?
✓ Am I comfortable with buyers having up to 28 days before exchanging contracts?
✓ Have I compared auction with estate agents and cash buyers?
✓ Have I reviewed all auction fees and charges?
✓ Is my property suitable for this selling method?
✓ Have I considered whether a traditional auction might be more appropriate?
✓ Do I need speed, certainty or maximum market exposure?
✓ Have I read the auction provider’s terms carefully?
✓ Have I sought legal advice if I’m unsure about any aspect of the process?
Frequently Asked Questions
What is the Modern Method of Auction?
The Modern Method of Auction is a hybrid selling process that combines elements of traditional auctions and estate agent sales, giving buyers additional time to arrange finance before exchanging contracts.
How long does the Modern Method of Auction take?
Although every transaction is different, buyers typically have up to 28 days to exchange contracts and a further 28 days to complete, meaning the overall process can take around 56 days.
Can buyers use a mortgage?
Yes.
One of the main advantages of the Modern Method of Auction is that buyers usually have sufficient time to arrange mortgage finance.
What is a reservation fee?
A reservation fee is a non-refundable payment made by the successful bidder to reserve the property while they progress towards exchange of contracts.
The amount varies depending on the auction provider.
Can the buyer pull out?
Although the reservation fee encourages commitment, the buyer may still fail to exchange contracts within the agreed timeframe.
The consequences depend on the auction provider’s terms and conditions.
Is the Modern Method of Auction legally binding?
The successful bid itself does not immediately create a legally binding property sale in the same way as a traditional auction.
The transaction generally becomes legally binding once contracts have been exchanged.
Is the Modern Method of Auction faster than using an estate agent?
In many cases, yes.
The structured timetable can offer a quicker route to completion than a traditional estate agent sale, although it is usually slower than a traditional auction or selling directly to a cash buyer.
Is the Modern Method of Auction suitable for every property?
No.
While many properties are suitable, the best selling method depends on your property, your timescale and your objectives.
How We Buy Any House Can Help
At We Buy Any House, we’ve been helping homeowners across England and Wales since 2008.
While the Modern Method of Auction offers a structured alternative to the traditional property market, it isn’t always the fastest or most certain way to sell.
If your priority is a straightforward sale with a guaranteed buyer, we may be able to help.
We offer:
- A free, no-obligation cash offer.
- No estate agent fees.
- Free legal fees.
- No property chain.
- No reservation fees.
- No risk of mortgage delays.
- Completion in as little as three days, or on a timescale that suits you.
Our experienced property specialists will explain all of your options so you can decide which selling method is right for your circumstances, with no obligation to proceed.
Final Thoughts
The Modern Method of Auction has become an increasingly popular selling option because it offers greater flexibility than a traditional auction while providing a more structured process than a conventional estate agent sale.
However, it’s important to understand that it isn’t a guaranteed route to completion. Buyers still have time to arrange finance before exchanging contracts, and there remains a risk that some transactions may not complete.
Before deciding how to sell your property, compare all of the available options carefully. For some homeowners, the Modern Method of Auction provides the right balance between speed and flexibility. For others, a traditional estate agent, traditional auction or professional cash buyer may be a better fit.
Choosing the right selling method starts with understanding your priorities and selecting the option that best supports your circumstances.
Important Information
This guide provides general information about the Modern Method of Auction in England and Wales. Auction processes, reservation agreements, fees and completion times can vary between providers. The information provided should not be considered legal or financial advice. Before committing to any auction agreement, you should read the provider’s terms carefully and seek independent legal advice if required.