There are two types of property auction. While both offer certainty there are some subtle differences. Whilst we would be pleased to discuss these with you in person here are the different types of auction
Traditional Auction
This method of auction is often best suited to cash buyers and investment properties as on the fall of the hammer contracts are deemed to have been exchanged and the buyer then has 28 days to complete the purchase. The buyer pays a 10% deposit on the day of the auction to secure the sale. While this method has been in operation for a long time it is not very “user friendly” and can limit the market for non-investment sales whereby a traditional buyer would need to secure a mortgage to finance the purchase.
Modern Method of Auction
Under the “Modern” auction method on the fall of the hammer the buyer pays a non refundable deposit and is then allowed 28 days to exchange contracts with a further 28 days to complete the contract. While this method is not quite as secure (contracts aren’t immediately exchanged on the fall of the hammer) it does allow conventional buyers requiring mortgage finance to buy property at auction.
Our dedicated auction team will be happy to discuss the merits of buying at auction and would be happy to assist with any questions you may have.
Buyers Premium
Successful bidders are required to pay a buyers premium of 6% (5% + VAT) subject to a minimum of £4800 (£4000 + VAT). The buyers premium is payable on all lots unless specified otherwise in the auction catalogue.