Property | Auction vs Private Treaty – Which is Right for You?
When it comes to selling a property, homeowners and investors often face a key question:
Should I sell at auction or through private treaty (estate agent)?
Each method has its pros and cons, depending on your property type, circumstances, and how quickly you want to sell. Below is a clear comparison of both methods to help you make an informed decision.
What is a Private Treaty Sale?
Private treaty is the traditional method of selling property through an estate agent. The property is advertised with an asking price or price guide, and potential buyers submit offers, which can be negotiated.
Key Features:
- Offers are made subject to contract
- Buyer can withdraw before exchange of contracts
- No set timescale for completion
- Typically takes 8–16 weeks to complete
- Involves negotiation between buyer and seller
Pros:
✅ Flexible for buyers and sellers
✅ Widely understood and accessible
✅ Suitable for most residential homes
Cons:
❌ Sales can fall through (33%+ fall-through rate in the UK)
❌ Open-ended timeframes
❌ Buyers may try to renegotiate after surveys
❌ Less transparency during the offer process
What is a Property Auction?
A property auction is a transparent and time-bound method of sale where buyers compete to purchase a property. It can be done in a live auction room, online, or by sealed bids.
There are two main auction types:
- Unconditional auction – Contracts exchanged immediately at the fall of the gavel
- Conditional auction – Reservation fee paid with time to exchange and complete
Key Features:
- Fixed dates for exchange and completion
- Legally binding sale (unconditional)
- Competitive bidding can drive price up
- Buyers typically exchange with a 10% deposit
- Completion usually in 28 days (unconditional) or up to 56 days (conditional)
Pros:
✅ Speed and certainty of sale
✅ Legally binding contracts reduce risk of fall-through
✅ Transparent, competitive bidding
✅ Ideal for probate, tenanted, investment, or unique properties
Cons:
❌ Requires legal pack and marketing preparation
❌ Not all buyers are comfortable with auctions
❌ May not suit every property (e.g., niche or very high-end homes)
Auction vs Private Treaty: A Quick Comparison
| Feature | Auction | Private Treaty |
| Speed of sale | Fast (often 28–56 days) | Slower (8–16+ weeks) |
| Legal certainty | High (legally binding) | Low (sale not binding until exchange) |
| Fall-through risk | Very low | High |
| Pricing | Competitive bidding | Negotiated offers |
| Transparency | High | Low |
| Flexibility | Less | More |
| Best for | Investment, probate, repossession, unique homes | Standard residential properties |
Which Method Is Right for You?
Choose Auction if you want a quick, secure sale with minimal risk of the deal falling through. It’s ideal for time-sensitive sellers, properties with development potential, or assets that attract investor interest.
Choose Private Treaty if your property is standard residential stock, you’re not in a rush to sell, and prefer flexibility in negotiations.
Get Expert Advice
At Dedman Gray Auctions, we offer both auction and private treaty sales through our team of experienced property professionals. We’ll help you decide which method suits your property and goals.
Call 01702 311010
Email auctions@dedmanauctions.com
Or visit www.dedmangray.co.uk to learn more.