Types of Auctions

Types of Auctions – How Many Options Are Available to Bidders?

Types of Auctions

Property auctions are currently attracting significant attention. Demand for participating in auctions has continued to increase as the cost of living and investment costs rise, leading many buyers and investors to turn to auctions as an alternative route into the property market.

In July 2025, more than 4,500 properties were offered at auction, representing an increase of 3.6% compared with the previous year, with total funds raised amounting to £662.4 million, an increase of 8.3%.
Furthermore, in 2024, there were nearly 33,500 digital auctions, compared with fewer than 4,000 auctions conducted in traditional auction rooms.

However, standard property auctions represent only one of many options available to bidders. In reality, there are many different types of auctions. Some involve property, while others do not involve land or buildings at all. In addition, each auction type has its own rules, asset categories, and characteristics, which can easily cause confusion for investors who lack sufficient understanding.

For this reason, a number of common scenarios frequently encountered by auction investors have been compiled. However, this content is not intended to recommend any specific auction type. Property investors must determine for themselves which auction format is most suitable for their portfolio and available capital.

1. Residential Property Auctions

Residential property auctions form the core of the auction market. Properties offered typically include houses, condominiums, or apartment buildings. Some auction houses specialise exclusively in residential properties, while others operate only within specific regions.

Generally, homeowners choose to use auction houses to sell their properties with the aim of achieving a quick sale. There are many reasons why properties are brought to auction, and in some cases this occurs when other sales methods have failed.

For example, properties that are in poor condition or require significant refurbishment may be difficult to sell through traditional estate agents. However, bidders seeking renovation and resale opportunities often turn to auctions to find such properties.

Typically, sellers set a minimum acceptable price for their property, and the highest bidder on the auction day becomes the successful buyer. In most cases, once the auction hammer falls, the transaction must be completed within 28 days.

2. Commercial Property Auctions

Standard commercial property auctions operate in a similar manner to residential property auctions. However, instead of bidding on houses or apartments, bidders compete for commercial properties such as retail units, industrial buildings, or leisure properties.

In recent months, residential property auctions have been more popular than commercial property auctions. Nevertheless, according to data from Propertymark, an increasing number of investors are beginning to move away from the residential auction market towards the commercial property auction market.

3. Asset Auctions

Asset auctions are designed for the sale of non-land assets. These typically include vehicles, machinery, production equipment, and even entire businesses.

When businesses enter insolvency, asset auctions may be used to sell certain assets or inventory in order to generate cash flow. Examples include agricultural equipment, manufacturing machinery, or steel containers.

In addition, there are general asset auctions that sell retail goods such as furniture, household appliances, and clothing.

4. Open and Closed Auctions

Property auctions and other auction types are commonly divided into open auctions and closed auctions.

In an open auction, all participating bidders are aware of the prices being submitted. They can see competing bids and adjust their bidding strategies accordingly.

In contrast, in a closed auction, bidders do not know how much others have bid for the asset. Sellers in closed auctions may choose to open additional bidding rounds if they are not satisfied with the prices received.

Both open and closed auctions can be conducted either online or in person.

5. Silent Auctions

Silent auctions are similar in nature to closed auctions. Items offered for sale, whether jewellery, artwork, or travel packages, are typically displayed around the venue or listed on tablets.

Forms are provided for buyers to write down their bids, or bidders can log in to tablets provided to place bids electronically. At the end of the auction, the highest bidder is declared the winner.

This type of auction is commonly used by charities and other organisations to raise funds for specific causes. Supporters who agree with the organisation’s mission may donate items for auction, with proceeds going directly to the relevant charity or non-profit organisation.

6. Traditional and Modern Auctions

Similar to how auctions can be divided into open and closed formats, auctions can also be classified as traditional or modern. The key difference between these two types is the amount of time bidders are given to complete the transaction.

In a traditional auction, buyers usually have 28 days to complete the purchase.
In a modern auction, buyers are given 56 days to complete the transaction and arrange financing.

Both auction formats can be conducted online, although modern auctions exist exclusively in the digital environment.

In addition, traditional auctions may be more likely to feature properties in poorer condition, while modern auctions tend to attract a wider range of assets. Modern auctions also generally take much longer to complete than traditional auctions.

7. Dutch Auctions

A traditional Dutch auction, also known as a descending-price auction, operates in reverse. Typically, the auctioneer begins at a high price, based on the assumption that the price is initially too high to be accepted.

The auctioneer then gradually lowers the price until a bidder accepts it. The first bidder to do so becomes the winner. In Dutch auctions, there is usually only one bidder per asset, rather than multiple bidders competing against each other.

8. Commission Bidding

Commission bidding may appear across many different auction types. In simple terms, commission bidding involves a bidder authorising the auctioneer to place bids on their behalf when they are unable to attend the auction in person.

Auction houses typically offer several options for absentee bidders. Many provide telephone bidding services and proxy bidding services. Proxy bidding involves registering a bidder’s best or maximum bid with the auctioneer in advance, usually via a bidding form.

If someone wishes to submit an offer on a property before an auction begins, the most effective approach is to contact the auction house directly. They can confirm whether this is possible and explain the relevant procedures.

9. Timed Auctions

Timed auctions do not involve a live auctioneer. Instead, a specific bidding window is set, during which the relevant assets are available for bidding, and the highest bidder wins.

This auction type is widespread in the online environment, where bidders can place bids 24 hours a day, seven days a week.

10. Blind Auctions

In blind auctions, the number of winners is usually determined by the quantity of assets available. For example, if there are 10 items for sale, the 10 highest bidders will be successful.

Clearly, in blind auctions, bidding histories are hidden. If a property investor participates in an anonymous auction, they will be informed if they are a winning bidder. If not, they must either increase their bid or withdraw from the auction.

11. Call Auctions

Call auctions are commonly associated with stock markets. Participants place buy or sell orders at specified bid or offer prices, and these orders are then collected and matched during a predetermined time period.

This process is typically carried out through automated systems, although the rules governing call auctions may vary between stock exchanges.

12. Conditional Auctions

In a conditional auction, property is offered through a highest-bid process, with the winning bidder receiving exclusive rights for a specified period, which may last several weeks.

During this period, the successful bidder must arrange financing and exchange contracts within the agreed timeframe. Bidders are required to pay a non-refundable reservation fee to secure exclusivity, and both buyer and seller are committed to the process.

Typically, buyers are given 28 days to exchange contracts, followed by a further 28 days to complete the transaction.

13. Repossessed Property Auctions

When bidders in the United Kingdom consider auction sales, they are often referring to repossessed properties. A repossessed property is one that has come into the ownership of a bank or mortgage lender after the original borrower has defaulted and can no longer meet repayment obligations.

These properties may then be sold at auction in an attempt to recover some of the associated costs, creating opportunities for buyers.

Such properties are often listed at lower prices to attract bidders, although they may require significant refurbishment to add value. Repossessed properties are therefore often suitable for investors with long-term renovation plans.

14. Sealed Bid Auctions

In a sealed bid auction, buyers submit their offers in sealed envelopes by a specified date and time. At that point, all envelopes are opened simultaneously, and the highest bidder is declared the winner.

Typically, each bidder is permitted to submit only one offer.

It is clear that there are many different auction types and bidding methods. While many may not be suitable for every investor’s circumstances or requirements, there are also auction formats that some people may not previously have considered possible.

Table: Auction Type Comparison (Advantages and Disadvantages)

Frequently Asked Questions (FAQ)

Q1: How many types of auctions are there?
A: There are many different auction types, including property-related and non-property auctions, depending on the asset category and bidding method.

Q2: Are all auction types suitable for every investor?
A: No. Investors should select auction types that align with their capital resources and investment strategies.

Q3: Are online auctions reliable?
A: Online auctions are reliable when conducted through transparent and auditable platforms.

Q4: Do bidders need to prepare a large amount of cash before participating in an auction?
A: This depends on the specific auction type and the required deposit and payment terms.

Source Credit:
This article is compiled and referenced from:
Market Financial Solutions – Types of Auctions: Just How Many Options Are Available to Bidders?
Website: https://www.mfsuk.com/blog/types-of-auctions/