Is Selling a House at an Auction Better Than Using a Realtor?

Many homeowners find themselves at a crossroads when it’s time to sell. Should you take the traditional route with a trusted real estate agent or explore auctions? Each method has its advantages, and the better option depends on your goals, timeline, and how much control you want over the process.

If your top priority is getting the highest possible price, let’s be clear: auctions typically don’t deliver that outcome. While they offer speed and certainty, they often result in a lower sale price than a well-marketed listing handled by an experienced agent.

Real estate auctions and traditional sales each offer something different, and choosing between them depends on your needs. The process, the timeline, and the potential outcome all vary depending on which route you take. If you’re trying to decide the best way to sell your home, understanding how each option works can make all the difference.

What Is a Real Estate Auction?

Most people who sell property will do it with the help of a real estate agent. Most don’t even know that a property auction is an option or what it is. In a real estate auction, rather than listing your property at a set price and waiting for offers, buyers compete directly in open bidding. A real estate auction is a public sale where a property is sold to the highest bidder.

How Real Estate Auctions Work

Licensed auctioneers or specialized real estate auction companies typically handle real estate auctions. The seller agrees in advance to the auction’s terms, and buyers are expected to come prepared financially and logistically to complete the purchase if they win. That means they often come with a blank check or the ability to transfer large sums if they win the auction.

Unlike traditional sales, which allow for negotiation and contingencies, auctions are typically fast, firm, and final as long as the property meets the reserve price. Once the highest bid is accepted and the gavel drops, the buyer is under contract and expected to close, often within 30 days. The auction’s structure is designed to move quickly, attract competitive offers, and eliminate the uncertainty of back-and-forth negotiations.

Types of Auctions: Absolute, Reserve, and More

The sale format you choose can significantly impact the level of buyer interest and your potential sale price:

• Absolute auctions offer no safety net for the seller. There’s no minimum bid or reserve price—whoever bids the highest wins the property, even if the price falls short of expectations. This format often generates strong interest and competitive bidding but carries more risk.
• Reserve auctions give the seller more control by allowing them to set a minimum acceptable bid, called the reserve price. If bidding doesn’t reach that threshold, the property doesn’t sell. These sales reduce risk but may discourage bargain hunters or cautious buyers from participating aggressively if they feel the reserve is too high.

There’s also the choice between online and in-person auctions. Online platforms have grown in popularity, allowing buyers to participate from anywhere and increasing exposure. In-person auctions still happen, especially for high-profile or local properties, and can create an energetic atmosphere that fuels bidding wars.

What to Expect From the Auction Process

Sellers typically work with an auction company to prepare the property, which can involve gathering disclosures, setting terms, determining starting bids or reserves, and crafting a short marketing campaign. The lead-up to the auction is usually brief, sometimes just a few weeks, so everything needs to move quickly.

On auction day, whether online or on-site, registered buyers place their bids within a set time frame or live bidding session. Once a winning bid is confirmed, the buyer signs a purchase agreement immediately. The closing process moves swiftly from there, with fewer contingencies and less back-and-forth than a traditional sale.

Who Conducts the Auction Sale, and What Are the Auction Fees?

Real estate auctions are typically managed by auction houses, licensed real estate auctioneers, or specialized real estate firms. They handle the logistics, marketing, bidder registration, and legal compliance. However, if a property is being sold due to foreclosure or tax sale, the municipality might auction it on the courthouse steps.

In any type of auction, fees will be involved to cover the service cost. Most auction companies charge a commission, sometimes called a “buyer’s premium,” ranging from 1% to 10% of the final sale price. How much they charge will depend on their service and the asset type.

The more expensive the property, the lower the fee percentage changed. For example, a $350,000 lot of land might have a 5-10% commission charge, while a $10 million farm might only have a 1-2% fee. Sometimes, the seller pays this fee; in others, it’s passed on to the buyer. Additional costs might include marketing expenses or administrative fees, so always review the terms upfront.

Because of auction fees, it’s important for sellers to know that an auction sale may result in lower fees than a traditional real estate agent. Most real estate agents charge 5-6% commissions, which are split with the buyer’s agent.

How Long Does It Take to Sell at Auction?

The auction timeline is significantly shorter than a traditional sale, which makes it an attractive option for the right seller. From the time a seller signs the auction agreement to the actual event, it can be as quick as two to four weeks. After the auction, closing often happens within 30 days. This speed can be a major advantage for sellers looking for a fast, definitive sale.

What is a Traditional Realtor Sale?

The traditional way to sell property is to partner with a licensed real estate agent. Working with a real estate agent is how most homeowners will dispose of their properties, and for good reason: they offer broad market exposure, professional guidance, and strategic negotiation support aimed at helping you get the best possible price.

A Real Estate Agent’s Role, Timeline, and Costs

A realtor begins by evaluating your property and recommending a competitive listing price based on market trends, local comps, and the home’s condition.

From there, they manage marketing, often including staging advice, professional photography, online listings, and open houses to attract serious buyers. One of the most powerful tools agents use is the Multiple Listing Service (MLS). This centralized platform gives your home visibility across thousands of websites and puts it directly in front of buyer agents. Most agents provide a full-service experience, whether working on residential or commercial property.

The typical sale timeline when working with a realtor takes 90 to 150 days, depending on market conditions. This time includes their pre-listing efforts, such as staging your home and putting together disclosures, followed by the listing period.

After accepting an offer, the process moves through inspections, appraisals, and final negotiations before reaching the closing table. Sellers need to factor in pre-listing efforts, time on the market, negotiations, and an additional 60-90 days for escrow.

Most realtors work on commission, usually 5%–6% of the sale price, split between the buyer’s and seller’s agents. While there may also be closing costs or minor prep expenses, sellers often recoup these through a higher final sale price than other selling methods.

Throughout the sale process, a good agent serves as your advisor, advocate, and project manager. With FastExpert, finding a top-performing realtor in your area is easy. Our platform connects you with agents who have the experience, local knowledge, and reviews to help you sell with confidence.

Auction vs. Using a Realtor: Success Rates and Outcomes

Some homes sell in days, others sit on the market for months, and your chosen method can make all the difference. Auctions promise speed and certainty, while working with a realtor often opens the door to broader exposure and higher offers. But which actually performs better?

Success Rates and Deal Reliability

Traditional real estate transactions in the U.S. have a fall-through rate (meaning that they went into contract but didn’t close) of approximately 14.3%. Sales often fall through due to financing issues, inspection problems, or buyer’s remorse. In contrast, auctions typically have a much lower fall-through rate, as winning bids are binding and require immediate deposits, reducing the likelihood of deal cancellations.

While there is limited data on the success of the auction selling process, it’s safe to assume that most properties that go under contract through an auction complete their sale. This is because deposit requirements are high (usually 10%) and non-refundable. Therefore, buyers are highly incentivized to complete the sale.

Sale Prices and Time on Market

While auctions can create competitive bidding environments, they don’t guarantee higher sale prices. Traditional sales with real estate agents usually achieve higher final sale prices due to broader market exposure and negotiation strategies. However, auctions typically result in faster sales. Properties sold at auction often close within 30 to 45 days from the day of auction, whereas the process for traditional sales can take several months (90-150), depending on market conditions.

When selling through an auction, property owners need to expect to sacrifice some of their potential proceeds for speed and surety. For some, this can be a fair tradeoff and lead to satisfied sellers. For others, the difference between achieved price and assumed market value could lead to a disappointing result.

That price gap can be especially significant in slower markets or with properties that don’t attract competitive bidding. While real estate agents can price strategically, market extensively, and negotiate multiple offers, auctions depend heavily on timing, demand, and the bidder pool of prospective buyers available on that specific day.

Pros of Selling at Auction

For the right property and situation, selling at auction can be the right choice. This sale process offers clear advantages, especially when time is limited or certainty is critical. Here are some of the benefits sellers can expect from an auction:

• Faster sales timeline: Auctions operate on a set schedule, with closing typically occurring within 30 to 45 days of the auction date.
• Competitive bidding environment: Multiple buyers bidding in real-time can drive the final sale price, especially for in-demand or unique properties.
• As-is sales: Most auction sales are non-contingent, meaning there are no repair requests, inspections, or seller concessions. The terms are set in advance, so there’s no haggling after the bidding ends.
• No showings or staging needed: There’s no need to prepare for open houses or back-to-back walkthroughs.
• Certainty of sale date: Once the auction is scheduled, sellers can plan around a definitive closing window.
• Built-in urgency: Auctions create a limited-time opportunity that motivates serious buyers to act fast.
• More likely to attract cash buyers: Many auction participants are investors or high-intent buyers with secured financing.

Auctions are ideal for homes that are hard to value because they are unique, historic, or distressed. As a result, you can find houses worth many millions that are auctioned or houses that go for as little as $10,000. An example of a property that could do well at auction is a historic farmhouse with lots of land. The right buyer could be an individual looking to bring the property back to life or a developer, so it’s difficult to determine the right listing price. An auction brings together potential buyers in a competitive environment and lets them determine the right market value.

Cons of Selling at Auction

While auctions offer speed and certainty, they have tradeoffs that may not work for every seller or property. Before committing to the auction route, it’s important to understand the potential drawbacks:

• Risk of selling below market value: If bidding is low or buyer interest is limited, the final sale price may fall short of what the home could achieve on the open market.
• Higher upfront costs and fees: Auction houses often charge marketing fees regardless of whether the home sells, and prospective buyers typically pay a premium that can impact their willingness to bid high.
• Limited pool of potential buyers: Many everyday homebuyers avoid auctions due to fast timelines, financing restrictions, or unfamiliarity with the process. Prospective buyers using VA, FHA, or other financing with contingencies are unlikely to participate, further narrowing the pool.
• Perception issues: Auctions are sometimes associated with foreclosure or distressed sales. Even if the property is in good condition, the auction format can raise questions for potential buyers.
• Less control: Once the auction starts, the seller cannot adjust terms, negotiate directly, or accept a non-winning offer.
• Short marketing window: Most auctions are promoted for just a few weeks, limiting exposure time and potentially reducing the number of interested bidders.
• No guaranteed sale price: Even with a reserve auction, there’s no certainty the property will reach the price the seller hopes for. In some cases, it may not sell at all.
• No negotiations: Auction terms are set in advance and apply to all bidders equally. Sellers can’t negotiate on closing dates, contingencies, or buyer requests.

Auctions can be a great fit in the right circumstances, but they aren’t ideal for every home. Most homes will achieve the best results with the lowest cost by working with a real estate agent.

Pros of Selling with a Realtor

Experience shouldn’t be considered a luxury but an advantage. Selling a home is complex, and every choice can affect your outcome. Pricing, marketing, staging, and negotiating aren’t tasks you want to tackle alone when the stakes are high. Working with a skilled realtor gives sellers a clear edge by turning market knowledge, strategy, and professional networks into real-world results. If you’re aiming to get the most out of your sale, here’s why partnering with an experienced real estate agent can make all the difference:

• Professional pricing guidance: Realtors use market data, local expertise, and pricing strategies to help sellers set a price that attracts serious buyers without leaving money on the table.
• Broader marketing reach: Listing on the MLS exposes your home to thousands of agents and their clients, while professional networks and social media expand visibility even further.
• Professional staging and photography: Most agents arrange professional staging and photography to showcase the home’s best features in their marketing.
• Negotiation expertise: Experienced agents know how to position offers, counter strategically, and protect your interests during negotiations, leading to better terms and higher final prices.
• Paperwork and legal requirements: From disclosures to contracts, realtors manage the selling paperwork, helping avoid costly mistakes.
• Potentially higher selling price: With the right pricing, presentation, and promotion, agents often help sellers achieve offers that exceed what they might get through other sale methods.
• Access to pre-qualified buyers: Realtors pre-qualify parties during the selling process to ensure buyers are financially capable, reducing the risk of deals falling through.
• Advise on improvements that increase value: Agents know which updates yield the biggest returns and can guide sellers on smart, cost-effective improvements before listing.

A good agent is a steady partner from listing to closing, offering advice, updates, and support at every step. Working with an experienced agent can often mean the difference between a stressful, uncertain sale and a smooth, profitable one. If you’re ready to work with a proven expert who can price, market, and sell your home for the best possible outcome, FastExpert makes it easy to find the right agent. Browse top-rated realtors in your area, compare reviews, and choose a professional to help you reach your real estate goals.

Cons of Selling with a Realtor

While working with a real estate agent offers many advantages, it’s not without tradeoffs. Selling through the traditional process often requires more time, flexibility, and patience than faster options like auctions or direct sales. Before listing your home, consider the potential challenges you might encounter along the way:

• Longer time to sell: Traditional listings typically take three to six months to close, depending on market conditions and the property’s appeal.
• Commission costs: Sellers usually pay a commission fee of 5% to 6% of the final sale price, which is split between the buyer’s and seller’s agents.
• Less certainty about timing: Even with strong marketing, there’s no guarantee exactly when the right buyer will surface and an offer will come in.
• Ongoing property maintenance: Keeping a home show-ready means regular cleaning and maintenance, which can overwhelm already stressed sellers.
• Multiple showings and disruptions: Open houses, private showings, and last-minute visits can interrupt daily life, especially for families with kids or pets.
• Buyer financing risks: Even after accepting an offer, deals can fall through if the buyer’s mortgage financing is delayed or denied. This situation can set property sales back by weeks or months.
• Contingencies and inspections: Most buyers include contingencies for home inspections, appraisals, and financing approval, which can create opportunities for renegotiation or even contract cancellation.

Selling with a realtor demands more effort and patience from the seller, but those challenges can turn into opportunities with the right agent. Most often, properties sold through a real estate agent will sell at a higher price than if sold through an auction.

Which Option Is Right for You?

Do you want to sell quickly with limited hurdles, or do you want to get the highest price for your property? Unfortunately, sellers rarely get both.

Whether you choose to sell through an auction or with a real estate agent depends on your personal and financial needs. An auction might be best if you need to sell quickly or if the property is unique or distressed, making it difficult to value.

Scenarios where an auction can make sense include:

• Need for an extremely quick sale
• Inherited property you don’t want to maintain
• Unique or hard-to-value property
• Foreclosure or pre-foreclosure situation
• Property in poor or distressed condition
• Multiple heirs or owners needing a clear, fast resolution

On the other hand, if your goal is to maximize the sale price and you have more flexibility with your timeline, working with a real estate agent is usually the better choice. Realtors offer the advantage of strategic pricing, broader market exposure, and the ability to negotiate terms—key factors that can drive stronger offers. Selling with a realtor tends to be ideal when:

• You want to achieve the highest possible sale price
• You have no urgent timeline
• The property is a standard residential home
• The property is in good to excellent condition
• You are a first-time seller needing full-service guidance
• The situation involves complex negotiations, repairs, or contingencies

When deciding which path to take, it’s important to consider the factors that can impact your success:

• Timeline Requirements: How quickly do you need (or want) to sell?
• Property Condition: Is the home move-in ready or does it need major repairs?
• Local Market Conditions: Is it a seller’s or buyer’s market?
• Financial Situation: Can you afford the potential holding costs of a longer sale?
• Risk Tolerance: Are you comfortable with uncertain outcomes or prefer more control?

If you’re still unsure, using a simple decision-making tool can help. Think about your priorities. An auction could be a strong option if speed and certainty outweigh price. If maximizing value and reaching the widest pool of buyers is more important, partnering with a skilled realtor is likely the better route.

Alternatives to Sell a Home

If neither an auction nor a traditional realtor sale feels like the right fit, there are other ways to sell a property. Each option offers its own mix of convenience, speed, cost savings, and potential tradeoffs.

For Sale By Owner (FSBO)

Selling without an agent allows homeowners to avoid commission fees and maintain full control over the process. However, FSBO sales often struggle with pricing strategy, marketing reach, and negotiation expertise. Many FSBO homes sell for less than those listed with an agent—and often take longer to close, making it a riskier route for sellers hoping to maximize value.

iBuyers

iBuyers like Opendoor and CleverOffers use technology to make instant offers on homes, promising speed and simplicity. Sellers can often close in a matter of days with minimal hassle. However, the convenience comes at a cost: iBuyer offers are usually below market value, and service fees can add up to 5% to 10% of the sale price, making them comparable to or even more expensive than traditional realtor commissions or an auction.

Direct Cash Buyers

Local investors or national companies specializing in cash purchases can close very quickly, often buying homes as-is. This can be helpful for distressed properties or urgent situations. You’ll often see these buyers advertise signs that say “We Buy Houses.” Like auctions, cash buyer offers are typically well below market value, and sellers sacrifice price for speed and certainty.

Limited-Service Agents

Some brokerages offer limited-service packages where agents handle specific tasks, like listing the home on the MLS, but leave the rest to the seller. This can reduce commission costs, but sellers lose out on full-service support like negotiation strategy, marketing expertise, and transaction management.

Flat-Fee MLS Listings

With this option, sellers pay a set fee (usually a few hundred dollars) to have their property listed on the MLS without hiring a full-service agent. It provides exposure to a large buyer pool, but sellers must handle showings, negotiations, paperwork, and legal compliance on their own, similar to FSBO.

Choosing Your Best Path: Auction or Agent?

Auctions and realtor-assisted sales offer unique advantages, but they serve different needs. Auctions provide speed, certainty, and an as-is sale structure, making them ideal for sellers who prioritize timing over maximizing price. Traditional sales with a realtor, on the other hand, offer broader market exposure, stronger negotiating power, and the highest potential for top-dollar offers, although they typically take longer.

The right choice depends on your goals, timeline, and property condition. If you’re still weighing your options, speaking with a real estate professional can provide the clarity you need to move forward confidently. A trusted expert can evaluate your situation, help you understand market conditions, and recommend the best strategy for your home.

FastExpert makes it easy to find top-rated real estate agents who know your local market inside and out. Whether you’re looking for a full-service listing agent, advice on auction options, or a second opinion, the right expert is just a few clicks away.