⚡ Firm cash offer in 48 hours · Covering all of Scotland · Call 0808 303 1357
Modern Method of Auction Explained — Scottish Seller's Guide
Conditional auction with buyer-paid fees, a 56-day window to exchange, and no gavel-fall certainty. How it compares to cash buying and traditional auction.
Firm offer in 48 hoursNo estate-agent feesLegal fees coveredCompletion in 14–28 daysNAPB member
Home › Scotland › Modern Method of Auction Explained
The Modern Method of Auction (MMoA, sometimes 'Modern Auction' or 'conditional auction') has become common since the late 2010s, promoted by platforms like Iamsold, Auction House Scotland's online platform, and others. It's marketed as 'the best of both worlds' between private treaty and traditional auction — but the reality is more nuanced. This page explains exactly how MMoA works, what the fees are, who pays them, and how it compares to selling to a cash buyer.
How we help — modern method of auction Scotland
No reservation fee for buyers — our offer is the full price you receive
No conditional 56-day window — missives concluded in 7–14 days
No buyer walk-away risk — once missives concluded, sale is binding
No auction-house commission on top
Firm offer in 48 hours without needing to enter a 4-week catalogue cycle
Modern Method of Auction — how it works in practice
Conditional auction: the winning bidder pays a non-refundable 'reservation fee' (typically 4.5% of purchase price + VAT, subject to a £6,000 minimum) to secure 28–56 days of exclusivity. They're NOT legally committed to buying during that window.
Buyer walk-away risk: during the 28–56 day window, the buyer can pull out for any reason. They lose the reservation fee but the seller is back to square one. Drop-out rates are higher than traditional auction.
Who pays fees: the reservation fee is paid by the BUYER to the auction platform — it's on top of the sale price. So a property 'sold' for £150,000 at MMoA actually costs the buyer £156,750 + VAT (£150k + 4.5% reservation fee).
Effect on seller price: because buyers know they're paying 4.5% on top, they typically bid 3–5% lower than they would at traditional auction or private treaty. The reservation fee comes out of what the buyer is willing to pay overall.
Timeline: MMoA listing takes 2–4 weeks in the catalogue plus 28–56 days for the winning bidder to exchange. Total 8–12 weeks from decision-to-sell to completion. Similar to traditional auction, much slower than cash buyer.
Frequently asked questions
Is the Modern Method of Auction good for distressed sales?
Sometimes — but cash buyer is usually faster and more certain. MMoA works well for properties with a specific target buyer willing to pay the reservation fee for exclusivity. Less well for properties where urgency matters, because you lose 8–12 weeks.
Does the seller pay fees?
Typically no. The reservation fee is structured as buyer-paid, and auction-platform commissions are usually minimal for the seller. But the effective sale price is depressed by the buyer's fee consciousness.
What's the drop-out rate?
Industry data suggests 10–20% of MMoA auction 'wins' don't complete during the exchange window. Buyers either lose interest, fail to arrange finance, or find issues during due diligence. Seller loses time but usually doesn't lose money.
Would you recommend it over a cash buyer?
We wouldn't pretend to be neutral — we're a cash buyer. But honestly: if you have 8–12 weeks to play with and want to test the market for the highest price, private-treaty via an estate agent usually beats MMoA. If you want speed and certainty, cash buyer beats both.
We buy across every Scottish city and town
Wherever the property is in Scotland, we cover it. Browse by location:
We use cookies to improve your experience and remember your preferences. By continuing you accept our Cookie Policy.
Selling your home doesn’t have to be stressful. We offer fair, fast cash offers for property owners across Scotland — with no fees, no delays, and complete transparency every step of the way.
