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
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 which will enable the seller to ensure they are able to accept bids from all types of purchaser and in turn generate the highest possible sale price.
Once you have entered your property into an upcoming auction through your local estate agent expert you will be appointed a dedicated point of contact within the Auction North Team. This contact will keep you updated on progress and any offers received bore the day of the auction. Your property will be advertised extensively throughout the region with local presence and regional coverage such as Rightmove, zoopla and On The Market.
Once a sale has been agreed your property handler will ensure all solicitors have relevant documents to hand and will ensure the quick turnaround is met. You will be updated regularly by phone and email as to progress right through to completion.
With both types of auction the seller will agree a reserve price. This is the minimum amount you are willing to accept. This figure is not published and is known only to you and the auctioneer.
While the decision on which method of auction to use can seem complex the differences are only subtle and our auction team are happy to discuss the specific merits of each type with you.