The Methods of Auction

There are two methods of bringing a property to market via auction. The Traditional Auction and the Modern Method of Auction.

But what is the difference between the two?

The Traditional Auction

In most cases, a Traditional Auction is held on one day, with property marketing lasting for four weeks. The buyer pays a Buyer's Premium and a deposit, and legally binding contracts will be exchanged when the hammer falls.

After that he sale must be completed in 30 days. If the buyer does not complete the purchase, they lose the deposit and the buyer's premium. The seller keeps the deposit, and the auctioneer/agent keeps the Buyer's Premium.

In addition, if the seller then goes on to sell the property for a lower value than what it originally sold for, they can expect the original buyer to pay the difference.

• 30 Days Marketing
• One Day Auction
• Buyer's Premium Paid
• Deposit Paid
• Legally Binding Contracts Exchanged
• 30-Day Completion

Modern Method of Auction

On the other hand, bringing a property to market via the Modern Method of Auction, usually sees a 21-day period allocated to marketing followed by a 21-day online auction.

The buyer pays a Buyer's Premium, and a reservation agreement is signed however no legally binding contracts are exchanged. The buyer then has 56 days to complete the sale.

If the buyer does not complete the purchase, the auctioneer/agent keeps the buyer's premium. As no deposit was taken, the seller has no funds to keep.

• 21 days marketing
• 21-day auction
• Buyer's premium paid
• No deposit paid
• No legally binding contracts exchanged
• 56-day completion

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