The Modern Method of Auction (MMoA) has become one of the most talked-about ways to sell property in England, but it isn’t right for every seller. Here’s a straight look at both sides.
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The modern method of auction is not the same as the traditional auction most people picture. Under this approach, the sale is agreed on the day, and the buyer is bound to complete within a fixed period. Understanding how that works is the starting point for weighing the pros and cons below.
For sellers, the main attraction of the modern method of auction is certainty. Once a bid meets your reserve, the sale is committed, and completion follows within the set timetable. That is very different from an open market sale, where a buyer can withdraw at almost any stage before contracts are exchanged.
The trade-off is that the buyer carries a reservation fee, and the process has rules that sellers must follow. On reservation lots the fee is a non-refundable 5% plus VAT, with a minimum of £6,000 plus VAT, so it is a real commitment. Whether the modern method of auction suits you depends on how much you value speed and certainty against the highest possible price. Sellers who need a firm date, or who have already been through a slow sale, often find the trade-off worthwhile. Sellers who can wait for the best offer and have time on their side may prefer the open market.
For the wider steps involved in buying and selling, the government’s guidance on buying and selling your home is a useful reference.
The Pros
- Speed and certainty: once a buyer reserves, they’re contractually committed, with completion in 28 days (Unconditional) or 56 days (Conditional)
- No estate agent chain risk: buyers can’t simply walk away like they can on the open market
- You set the guide price, and competitive bidding can push the final price above it
- No cost to you: the buyer pays the reservation fee, not the seller
- Works for properties that are hard to mortgage-value conventionally, like probate homes, tenanted properties, or homes needing work
The Cons
- Buyers pay a non-refundable reservation fee (typically 5% plus VAT, minimum £6,000 plus VAT) on top of the purchase price, which can narrow the buyer pool slightly
- The guide price sets expectations; pricing it wrong affects bidding interest
- It’s newer than traditional auction or open-market sale, so some buyers and their solicitors are less familiar with the process
- Not ideal if your absolute priority is the highest possible price with no time pressure
Is the Modern Method of Auction Right For You?
MMoA suits sellers who value certainty and speed as much as price, particularly probate sales, landlords with tenanted properties, and anyone who’s had a sale collapse before.
Wondering whether it is right for your sale? Your valuation is free, with no obligation to go ahead.
Frequently asked questions
Frequently asked questions
Does the seller pay anything under the Modern Method of Auction?
No. On reservation lots, the buyer pays the reservation fee, not the seller.
What is the buyer’s reservation fee?
On reservation lots only, typically 5% plus VAT, with a minimum of £6,000 plus VAT, paid on top of the purchase price. This can narrow the buyer pool slightly.
Who is it right for?
It suits sellers who value certainty and speed as much as price, particularly probate sales, landlords with tenanted properties, and anyone whose sale has collapsed before.
What are the main drawbacks?
The reservation fee can narrow the buyer pool slightly, a wrong guide price affects bidding interest, and some buyers and solicitors are less familiar with the process.
Is it a good choice if the highest possible price is my only priority?
Not ideally. It is not the best fit if your absolute priority is the highest possible price with no time pressure.
