How to sell your property at auction
Traditional auctions and modern auctions
Traditional auctions
Traditional auctions typically take place in person at an auction house or online, with multiple properties listed for sale on a set day. They are often popular among real estate professionals who understand the system and can make offers with confidence, as it is a rigid process with little room for error. As soon as the hammer falls and the auction is over, contracts are exchanged and buyers must pay a deposit that day (usually 10%). They then have approximately 28 days to finalize the purchase.
Aside from this quick turnaround, the main appeal of selling your property at a traditional auction is the added level of security; Due to the strict rules regarding purchasing at auction, those attending are often willing to pay on the day or imminently, reducing the risk of a lengthy process and buyers withdrawing during the completion process.
Traditional auctions are a good option for sellers who need to sell quickly and for buyers who prefer cash. However, their fast-paced nature can intimidate inexperienced sellers and does not allow a potential buyer much time to secure a loan or mortgage. This reduces the pool of people who would be able to afford property.
Modern auctions
Modern auctions, on the other hand, take place online only and are a bit more flexible. Unlike traditional auctions, contracts do not have to be exchanged on the day of the offer, so it is not an immediate commitment. Instead, buyers have 56 days to complete the transaction, meaning that while they are still committed to purchasing the property, they have a little more time to finalize a mortgage agreement.
Besides the same security blanket as a traditional auction, modern auctions are attractive for their online convenience and the extra time they allow potential buyers to secure their financing.
The longer process of a modern auction can be beneficial if you are looking for a quicker process than selling through an estate agent, but still need time to get your house in order. business. However, there is no guarantee that your potential buyers will commit to the purchase, as they are not legally required to complete it.
