If the property is a little unusual and attracts good interest, it can sell for more at an auction than through an estate agent. As for market value, that is merely a price that both buyer and seller are willing to accept and it can be achieved through an auction or through an estate agent. The seller sets the reserve and if bidders take the price beyond that, then the house sells for market value.

You are right in your assumption though that a lot of auction properties require refurbishment or have tenants or have other issues that make them more suited to an auction sale. If you have a property that is not getting much interest through an estate agent, then it is possible that the price is wrong but there is nothing wrong with approaching an auctioneer or two to discuss their options. There are fees for the seller to pay at auctions even if bidding does not reach the reserve.