How to Sell Your Property Via Auction

Traditional Auctions vs. Modern Auctions

Traditional Auctions

Traditional auctions usually take place in person at an auction house or online, with several properties up for sale on a set day. They are often popular among property professionals who understand the system and can confidently make bids, as it is a rigid process with little room for error. As soon as the gavel falls and the auction is complete, contracts are exchanged and buyers are expected to pay a deposit that day (usually 10%), they then have approximately 28 days to complete the purchase.

Aside from this quick turnaround, the main appeal of selling your property in a traditional auction is the added layer of security; due to the strict rules around buying at auction, those in attendance are often ready to pay either on the day or imminently, reducing the likelihood of a lengthy process and buyers pulling out during the completion journey.

Traditional auctions are a good option for sellers who need to make the sale swiftly, and buyers who prefer cash. However, their fast-paced nature can intimidate inexperienced sellers and does not leave much time for a potential buyer to secure a loan or mortgage. This narrows down the pool of people who would be able to afford the property.

Modern Auctions

Modern auctions, on the other hand, take place purely online and are a little more flexible. Unlike traditional auctions, contracts do not have to be exchanged on the day of the bid, so it is not an immediate commitment. Instead, buyers have 56 days to complete the transaction, meaning that, while they are still committed to buying the property, they have a little longer to finalise a mortgage agreement.

Along with that same security blanket as a traditional auction, modern auctions are appealing for their online convenience and the additional time it affords potential buyers to secure their funding.

The lengthier process of a modern auction may be beneficial if you are looking for a quicker process than selling through an estate agent, but still need some time to get your affairs in order. However, there is no guarantee that your potential buyers will commit to the purchase, as they are not legally bound to complete it.


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