House selling guide

Sell at Auction or to a Cash Buyer?

Auction can suit unusual or unmortgageable property and is binding on the fall of the hammer, but you pay entry and commission fees, wait for the catalogue date, and risk the lot not selling at all. A cash buyer gives a guaranteed figure and date within days, with no fees and no exposure to how the room performs.

Written for sellers in Scotland

An auction gavel beside a set of house keys

Auction has a reputation for speed. In practice the sale is fast on the day, but getting to the day takes weeks, and the outcome is not guaranteed until the hammer falls.

This guide sets out the real process, the costs, and when each route makes sense.

How property auctions work in Scotland

Scottish auctions run on the same basic model as elsewhere in the UK. You instruct an auctioneer, agree a guide price and a confidential reserve, your solicitor prepares a legal pack, the lot is catalogued and then sold on a fixed date.

The binding moment is the fall of the hammer, which is why auction appeals to sellers who have been let down by a chain.

Traditional auction: binding on the day, completion usually within 28 days
Modern method: the buyer pays a reservation fee and gets longer to complete, often with a mortgage
Online timed auctions: bidding closes at a set time rather than in a room

What auction really costs

Auction cost	Typical amount
Entry or catalogue fee	£300 to £1,000, payable whether it sells or not
Auctioneer commission	Around 2 to 3 per cent plus VAT
Legal pack preparation	£300 to £600 plus VAT
Unsold lot	Fees lost and the process restarts

Step by step

1
Valuation and reserve
The auctioneer suggests a guide price and you set a reserve, the minimum you will accept. Guide prices are usually pitched low to attract bidders.
2
Legal pack preparation
Your solicitor prepares a legal pack with title, searches and conditions. Bidders rely on it, so anything missing suppresses bidding.
3
Catalogue and marketing period
Lots are advertised for roughly three to four weeks before the sale, with block viewings during that window.
4
Auction day
If bidding passes the reserve, the sale is binding immediately. If it does not, the lot is unsold and you have still paid the entry costs.
5
Completion
Completion typically follows within 28 days of the auction, though the buyer can still fail to complete and forfeit their deposit.
6
Compare with a direct offer
A cash offer gives you the figure before you commit to anything, rather than after a month of marketing and an uncertain afternoon.

When auction is the right call

Auction genuinely outperforms a private sale for property where the value is contested: derelict buildings, plots with development potential, unusual conversions and unmortgageable stock where a competitive room can bid past any private treaty figure.

For a standard house in average condition, the fees and the uncertainty rarely pay for themselves.

Auction costs and risks to price in

Add all of these up before deciding auction is the cheaper route.

Entry or catalogue fee, payable whether or not the lot sells
Auctioneer commission, commonly around 2 to 3 per cent plus VAT
Legal pack preparation costs from your solicitor
Marketing period of three to four weeks before the sale date
Risk of the lot going unsold and the process starting again
Risk of selling at the reserve when you hoped for more
Buyer failing to complete after the hammer falls
Block viewings and access arrangements while you still live there

Frequently asked questions

Is auction faster than a cash buyer?

Rarely. You wait for the catalogue date and then usually 28 days to complete, so the total is often eight weeks or more. A direct cash sale can complete in 28 days from the offer.