Modern Method of Auction | Buyers Guide
Discover the power of auction, with faster completion timescales, reduced risk of fall-throughs and more transparency.
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There are a range of sales options available for buying and selling property, not just Private Treaty. Auction has become more popular for buyers who want additional speed, security and transparency in their property purchase.
Our most popular auction method provides a fixed 56-day timescale, meaning that you’ll have enough time to arrange finance so you can still buy with a mortgage.
Why Buy at Auction?
Faster Sales Process
Complete in just 56 days from receipt of draft contracts.
Additional Security
Both you and the seller are tied into the sale, meaning you can be confident that the move will go ahead as planned.
Transparent Bidding
Leave sealed bids behind, you’ll know exactly what other parties are bidding.
Reservation Fees & Agreements
If you’re the successful bidder, you’ll be required to sign a Reservation Agreement and pay a Reservation Fee. This reserves the property for you as the buyer and commits both you and the seller to completing the purchase, giving security to both parties.
More Information Up Front
As property information is provided in the Buyer Information Pack before the auction, you can undertake your due diligence in advance. Allowing you to make an informed decision on your budget. The Buyer Information Pack includes items such as Title Documents, Water and Drainage Searches, Local Authority Searches and other useful information.
What is the Reservation Fee and When is it Paid?
The non-refundable Reservation Fee is paid when the auction ends and is paid in addition to the agreed purchase price. So you’ll have to consider the cost when setting your budget. And you’ll need to ensure that you can pay the Reservation Fee on the day of the auction.
The Reservation Fee can change from property to property but is typically 4.5%, with a minimum of £6,600 inc. VAT. Please check the Terms and Conditions on the specific property listing for details.
In some cases, the seller may choose to pay the Auction Fee. In these cases, you will be asked for a Reservation Deposit to be paid on the day of the auction. This will then be deducted from the sale price on completion. Please refer to the property terms and conditions for details.
When Will I Need to Complete?
With the Modern Method of Auction, you’ll need to be prepared to complete the purchase within 56 days from receipt of the draft contract.
If you’re financing your purchase with a mortgage, you must have a decision in principle in place before the auction. It is also advisable to instruct a Solicitor before the auction and to discuss the Buyer Information Pack with them.
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