Probate.Auction Guest Blog: The Risks of ‘Testing the Market’: Why Charities Need to Act on Unmodernised Properties
August 11, 2025
A guest blog by Dan Marsden, Head of Partnerships at Probate. Auction.
In today’s uncertain property market, charities with unmodernised properties are facing a crucial decision: test the market with high asking prices and risk endless delays, or find a more reliable and efficient route to sale? The practice of “testing the market” – listing properties at inflated prices in the hope that a buyer will appear – is increasingly proving to be a gamble, and it’s a gamble that charities simply cannot afford to take.
When it comes to legacy properties, every decision matters. Funds tied up in unsold properties can slow down the very missions charities are working so hard to fulfil. Yet many legacy managers are still sticking to traditional methods of selling – methods that often leave them in a state of paralysis as they wait for the right buyer, or worse, repeatedly reduce the price in a bid to attract interest. The reality is, this approach does not only wastes valuable time, it can also lead to huge financial losses.
The numbers speak for themselves. Currently, about 758,000 homes are sitting unsold on the market across the UK. That’s a staggering amount of property, with potential buyers nowhere to be found. To make matters worse, 85% of homes on the market in June didn’t even go under offer. This is a market struggling to function, where price expectations don’t align with what buyers are willing to pay. Yet, many charities are still tempted to list their unmodernised properties at a price that may be out of touch with market realities.
What does this mean for charities trying to sell property quickly? The answer is clear: price reductions. 1 in 7 properties on the market is already being reduced every single month, with many sellers caught in a cycle of increasing desperation – in 2024 this increased to 4 in 7. Listing high, reducing quickly, and hoping the market catches up simply isn’t a sustainable strategy. Charities need to be more strategic, and testing the market shouldn’t be part of the strategy. When properties are consistently reduced in price, it’s a sign that the original asking price was unrealistic. If you’re caught in this cycle, you could find yourself with a property that’s been listed for months, only to be reduced in price so much that you’re ultimately selling it for less than you could have gotten at the start.
More worrying still is the impact this has on the property’s appeal. Over 6,300 sales fell through last week alone – a quarter of agreed deals that collapsed mid-process. For charities looking to unlock funds quickly to support their beneficiaries, this is a huge problem. Not only is time wasted, but these fall-throughs create an emotional burden for families and trustees, who watch as the sale of a property unravels just when it seemed like the deal was done. Delays cost charities in more ways than one – they can undermine trust, lead to frustration, and add unnecessary stress to an already complex process.
Testing the market can also expose charities to other risks. For example, homes that leave the market due to failed sales don’t always return as stronger candidates. They simply disappear – withdrawn, expired, forgotten. This reflects a market full of properties that are either too overpriced or simply not moving, and when a property re-enters the market after a failed listing, it’s often viewed with suspicion. Buyers become wary, and in turn, the asking price drops further, perpetuating the cycle.
As a legacy manager, it is important to be aware of how these dynamics affect the value of unmodernised properties. While testing the market might seem like a way to try and achieve the highest price, it often results in a stagnant property that fails to attract serious buyers. The longer the property remains unsold, the more risk you take. Not only does the price fall, but so does the perceived value of the property. There’s no certainty, and certainly no guarantee that the price will ever return to what was initially hoped for.
Of course, we acknowledge that legacy managers are often not the sole decision-makers in the sale of a property. In many cases, they are one of several co-beneficiaries or parties involved in the decision-making process. While this can provide a wider perspective, it can also complicate matters when opinions differ on how best to manage the sale of an unmodernised property.
In these situations, education is key. This has been our mission. If you’re working with executors or other beneficiaries who may not fully understand the value and speed that auctions can offer, it’s crucial to gently educate them about the process. There are still many misconceptions surrounding auction sales; with myths about low sale prices, snobbish stigma or that we only work with cartels of investors. These misconceptions can cloud judgment and lead to decisions that ultimately result in missed opportunities. If you’re working with executors who may not fully understand the value and speed of auctions, we can provide clear, fact-based materials to help educate them. These misconceptions can all be overcome with solid data and case studies.
By providing the facts – clear, reliable statistics and examples of successful auction sales – you can help ensure that everyone involved is making an informed decision. When all parties are on the same page, they can move forward with confidence, knowing they are choosing the most effective route to unlocking the maximum value for the charity and its beneficiaries.
Now, let’s consider how auctions can provide a better alternative. Auctions are a powerful tool for selling unmodernised properties. The benefits of auctioning a property include speed, certainty and the ability to truly maximise value. When you sell at auction, you eliminate the guesswork. You know exactly when the sale will happen, and you’ll have a committed buyer on the fall of that hammer. It’s in the bag.
At auction, buyers know they’re competing against others and this competitive environment almost always leads to higher prices. The process is quicker too – with properties typically being sold start to finish in as little as 7-9 weeks, giving you fast access to funds. This is crucial when you’re dealing with charity assets, as there’s no time to waste waiting for a buyer who may never appear or perform (right now and across 2024, agents only managed to complete on half of their deals).
One of the greatest benefits of auctioning a property is the certainty it provides. Unlike traditional sales, where price reductions and fall-throughs are common, auction properties are sold with no conditions. There’s no risk of buyers backing out, no delayed paperwork and no waiting for the market to “catch up”. Auctions remove the uncertainty from the equation, giving you a clear path to sale.
If your charity is looking for the quickest, most effective route to selling unmodernised properties, auctions should be on your radar. We understand that charities face unique challenges, including the need for a fast, cost-effective solution that maximises the value of every asset. Our auction services are designed with charities in mind, providing support every step of the way.
Ultimately, the choice is yours. You can continue to test the market with uncertainty and price reductions, or you can take control with the speed, certainty and potential value of auction sales. We’re here to support you in making the right choice – one that aligns with your goals and helps unlock vital funds for your cause.
So if you would like to discuss this further or you’d like us to look at any properties in your files, do get in touch: [email protected]