What is the difference between auction and a cash house buyer?

Auction sets a fixed date and sells to the highest bidder above the reserve, but there is no guarantee the property sells or at what price. A direct cash buyer agrees a fixed figure with you in writing before any date is set, giving more certainty on price at the cost of speed of process.

What is the modern method of auction (MMoA)?

MMoA is a conditional auction format where the winning bidder pays a non-refundable reservation fee and then typically has around 56 days to exchange and complete, rather than the 28 days used in traditional legal-completion auctions.

Who pays fees at auction, the buyer or the seller?

It varies by auction house and format. In many traditional auctions the seller pays an entry and commission fee. In MMoA sales the buyer typically pays the reservation fee, though seller fees can also apply, so always check the specific auction's fee schedule before entering.

Can an auction sale fail even after the hammer falls?

In a traditional auction, exchange happens at the hammer and is legally binding, so failure risk after that point is low, though the buyer could still default. In MMoA, the buyer pays a reservation fee but exchange happens later, so there is a window where the deal can still fall through.

Is auction or a cash buyer better for an unmortgageable property?

Both can work. Auction attracts cash and bridging-finance buyers who are used to non-standard property, so it can suit unmortgageable stock well. A direct cash buyer removes the uncertainty of a reserve not being met, since the price is agreed before you commit to a date.

Cash buyer vs auction

Name: The Quick House Buyers — London
Address: Level 6, Design Centre East, Chelsea Harbour, London, England, SW10 0XF, GB
Telephone: 020 3744 0249

Written and reviewed by Kris McClory, Head of PurchasesLast reviewed 6 August 2026

Auction sets a fixed date but does not guarantee a sale or a price until the reserve is met. A direct cash buyer agrees a fixed figure with you in writing before you commit to a date. Traditional auction and MMoA both carry buyer-finance and no-sale risk that a direct cash purchase does not.

Rows of empty folding chairs in a hall hired for a property auction

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What are the three routes?

Traditional auction. A legal-completion auction where the winning bid at the hammer is immediately binding, with exchange on the day and completion usually 28 days later.
Modern method of auction (MMoA). A conditional format where the winning bidder pays a reservation fee, then has a longer window, often around 56 days, to exchange and complete through normal conveyancing.
Direct cash sale. A private treaty purchase agreed directly between you and the buyer, with a fixed price confirmed in writing after survey.

How do they compare on timescale, fees and risk?

General comparison, individual auction houses and buyers vary

General comparison, individual auction houses and buyers vary
	Traditional auction	Modern method of auction	Direct cash sale
Timescale to legal completion	Usually 28 days after the sale	Often 56 days after the sale	As little as 7 days, or a date you choose
Who pays fees	Often seller pays entry and commission fees, check the specific auction	Buyer typically pays a reservation fee, seller fees can also apply	None, we pay your legal fees
Reserve or no-sale risk	Property does not sell if reserve is not met	Same risk, plus the buyer can still fail to complete within the window	No reserve, price agreed directly and confirmed after survey
Buyer finance risk	Low after the hammer, exchange is immediate	Present, since exchange happens after the reservation period	None, purchase funded without a mortgage
Suitability for unmortgageable property	Attracts cash and bridging buyers used to non-standard stock	Also attracts cash and bridging buyers	Bought as-is regardless of mortgageability

What are the risks specific to auction?

The core risk at any auction is that your property simply does not sell if bidding does not reach the reserve. You will usually still owe entry and marketing fees even if there is no sale. In MMoA, the reservation fee protects the seller somewhat if the buyer walks away before exchange, but the exchange and completion timeline still runs several weeks after the auction date, during which the buyer can encounter finance problems.

When does a direct cash sale suit better than auction?

A direct sale suits you if you want to know the exact figure and completion date before you commit to anything, rather than finding out what the market will pay on the day. It also avoids auction marketing fees and the legal costs of preparing an auction pack. Auction can suit sellers who want to test open competitive demand and are comfortable with the possibility of no sale.

Whichever route you consider, verify the buyer or auction house properly first. See our checklist for checking a cash house buyer and read how we calculate offers on what we pay.

Common questions

What is the difference between auction and a cash house buyer?: Auction sets a fixed date and sells to the highest bidder above the reserve, but there is no guarantee the property sells or at what price. A direct cash buyer agrees a fixed figure with you in writing before any date is set, giving more certainty on price at the cost of speed of process.
What is the modern method of auction (MMoA)?: MMoA is a conditional auction format where the winning bidder pays a non-refundable reservation fee and then typically has around 56 days to exchange and complete, rather than the 28 days used in traditional legal-completion auctions.
Who pays fees at auction, the buyer or the seller?: It varies by auction house and format. In many traditional auctions the seller pays an entry and commission fee. In MMoA sales the buyer typically pays the reservation fee, though seller fees can also apply, so always check the specific auction's fee schedule before entering.
Can an auction sale fail even after the hammer falls?: In a traditional auction, exchange happens at the hammer and is legally binding, so failure risk after that point is low, though the buyer could still default. In MMoA, the buyer pays a reservation fee but exchange happens later, so there is a window where the deal can still fall through.
Is auction or a cash buyer better for an unmortgageable property?: Both can work. Auction attracts cash and bridging-finance buyers who are used to non-standard property, so it can suit unmortgageable stock well. A direct cash buyer removes the uncertainty of a reserve not being met, since the price is agreed before you commit to a date.