Understanding the Modern Method of Auction: A Guide for Cardiff Landlords

The property market in Cardiff is constantly evolving, and with it, so are the ways landlords and investors buy and sell homes. One of the biggest shifts in recent years has been the rise of the Modern Method of Auction (also known as a conditional auction).

This approach combines the speed and transparency of a traditional auction with the flexibility of a private treaty sale – making it particularly appealing to both landlords looking to expand their portfolio and those considering selling their rental property.

At RedKey Lettings and Property Management, based in Fairwater, Cardiff, we work closely with landlords who want to maximise the value of their property while keeping the process as smooth as possible. Here’s what landlords in Cardiff need to know about this growing sales method.

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What Is the Modern Method of Auction?

Unlike a traditional auction, where the fall of the hammer means an instant legally binding contract, the Modern Method of Auction offers a little more breathing room.

Here’s how it works:

• The property is listed for auction (usually online) for a set period, typically around 21 days.

• Interested buyers place bids in a transparent, competitive process.

• When the auction ends, the highest bidder pays a reservation fee (usually 5–10% of the purchase price).

• Instead of exchanging contracts immediately, the winning bidder has up to 56 days to secure their finances and complete the sale.

For landlords, this provides both security (as buyers pay a reservation fee) and flexibility (as it attracts a wider pool of buyers, including those relying on mortgage finance).

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Why Cardiff Landlords Are Choosing This Method

The Modern Method of Auction is growing in popularity among property owners in Cardiff and South Wales for several reasons:

• Faster sales process – Ideal if you need to sell a rental property quickly, perhaps due to a portfolio adjustment or tenant change.

• Lower risk of fall-through – The buyer’s reservation fee acts as a financial commitment, reducing the chances of them pulling out.

• Access to more buyers – Unlike traditional auctions, this method attracts not just cash investors but also first-time buyers and mortgage-backed purchasers.

• Potential for higher prices – Competitive bidding environments often drive up offers, meaning you could achieve above-market value.

For landlords in Fairwater, Canton, Llandaff, and other Cardiff suburbs, this can be an efficient way to achieve both a speedy and secure sale.

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How the Process Works with RedKey

At RedKey Lettings and Property Management, we support local landlords through every step of the Modern Method of Auction:

1. Setting the Guide and Reserve Price
   We’ll work with you to agree on a guide price (to attract interest) and a reserve price (the minimum you’re willing to accept).

2. Running the Auction
   The auction typically runs online for 21 days, with buyers submitting bids openly.

3. Securing the Reservation Fee
   The winning bidder pays a non-refundable reservation fee, securing their right to purchase.

4. The 56-Day Completion Period
   Buyers then have time to arrange finance, conduct surveys, and complete legal requirements.

This structured yet flexible process means Cardiff landlords get the benefits of speed and security, without limiting the buyer pool to cash-only purchasers.

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Benefits for Landlords in Cardiff

Selling through the Modern Method of Auction offers clear advantages for landlords:

• Certainty – With the reservation fee, you know the buyer is serious.

• Transparency – The competitive nature of the auction means fair market value is achieved.

• Broader appeal – Attracts both investors and private buyers.

• Quicker turnaround – Many sales complete in just eight weeks.

For landlords in Fairwater and surrounding Cardiff areas, this method can be particularly useful when selling tenanted properties or when a fast sale is required.

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Tips for Landlords Considering Auction

• Stage Your Property – Just like with standard lettings or sales, presentation matters. Declutter, refresh décor, and ensure the property photographs well.

• Understand Fees – The reservation fee is separate from the sale price. Work with your agent to fully understand how this affects net proceeds.

• Choose the Right Partner – Work with a Cardiff-based agency like RedKey Lettings and Property Management that has local knowledge, landlord expertise, and access to motivated buyers.

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Is the Modern Method Right for You?

Not every landlord will find the Modern Method of Auction the perfect solution, but it’s worth considering if you:

• Want a quick, secure sale with reduced risk of buyer withdrawal.

• Own a rental property in Cardiff or Fairwater that you’re ready to release.

• Are looking for an alternative to the unpredictability of traditional estate agent sales.

At RedKey Lettings and Property Management, our team can advise whether auction is the right option for your property and guide you through the entire process.

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Talk to RedKey Today

If you’re a landlord in Fairwater, Cardiff, or nearby areas and want to explore the Modern Method of Auction, our experienced team at RedKey Lettings and Property Management is here to help.

📞 Call us on 02920 090690
📧 Email hello@redkeylets.co.uk 
🌐 Visit www.redkeylets.co.uk/contact 

We’re proud to be Cardiff’s trusted independent letting agent, supporting landlords with everything from tenant find services to full property management – and innovative sales options like auction when the time is right.