Property auctions explained
Learn more about property auctions, the benefits and the options available to you.
The benefits of auction
Speed
In comparison to Private Treaty, which can take over 100-days* to complete, the Modern Method of Auction offers a completion timescale of 56-days** from receipt of draft contracts.
Security
With both parties committed to the sale, you can rest assured that the transaction is secure with only 5% chance of a fall-through, vs. 30% with Private Treaty^.
Transparency
Unlike Private Treaty sales, within auction transactions all parties can see every offer being made, for complete fairness and a transparent process.
No time to waste
Watch our short video to take a look at an auction transaction’s unique timescale and how this differs to Private Treaty or selling on the open market.
The Modern Method of Auction (MMoA)
The Modern Method of Auction (or 'Conditional Auction') see contracts exchanged and completed within a 56-day^ timescale from receipt of draft contract, where the buyer pays a Reservation Fee. MMoA opens auction up to more buyers than ever before, as its timescales allow extra time for arranging finances, making it available to mortgages buyers.
Traditional Auction
Traditional (or 'Unconditional') auction sees an immediate exchange of contracts, where the buyer pays a 10% deposit and a Reservation Fee when the auction ends- this process allows for 28-days to complete. While it is a more rapid process than the Modern Method of Auction, this does mean that interest is usually limited to cash and investment buyers.
*Source: Home Owners Alliance Report 2022
**Based on standard, freehold properties from the point the Draft Contract is issued.
^Quick Move Now 2022.