Historically, the traditional auction method has meant exchange on the fall of the gavel, with completion taking place within a 28 day window.
The Modern Method of Auction
With the introduction of the Modern Method of Auction (MMoA) from iamsold, this newer method gives buyers an extended and more flexible timescale of 56 days*. The Modern Method still benefits from auction’s transparency and security, whilst maintaining its speed with a faster timescale than a typical Private Treaty sale – which can take more than 100 days^
This added flexibility has attracted many buyers who may not have considered purchasing via auction before now, such as those wishing to purchase with a mortgage, as the extra time over traditional auctions gives buyers leeway to arrange their finances.
Whilst auction is now open to a wider range of buyers than ever before, it is still highly attractive to investors for buy-to-let or development purposes.
Seasoned Property Investor Sai hadn’t bought through auction before, and had no prior experience of the Modern Method of Auction, so was initially concerned about the quicker completion timescale of 56 days*.
Sai identified a property available for sale at auction with iamsold, who worked in partnership with the Estate Agent, Reeds Rains. He was interested in the 3 bedroomed, semi-detached property in Altrincham for its development potential and placed several bids on the iamsold online auction platform, where the auction took place. Sai was competing against two other interested parties before finally winning the auction with his bid of £317,500.
Although the timescale was initially a concern, Sai admitted that he “found the process smooth, and easier than Private Treaty, and the best bit was completion of the sale within 2 months.” It took just 51-days to complete the sale from the receipt of draft contracts, with everyone working towards a set date agreed upfront.
A satisfied buyer
Sai describes the process as a “very positive experience of Modern Method of Auction” and agreed that he “would recommend auction to others”.
Although he was in the fortunate position of having funds available to make the purchase, the Modern Method of Auction’s more flexible timescale still allowed the time buffer for Sai to arrange these finances. This extra time does mean that if you’re looking to invest, or looking for a project to turn into your dream home, auction could be a great option for you.
As most auction properties are sold without a chain, completion dates are more guaranteed than with Private Treaty sales, so you can plan your move with ease.
Whether you’re looking for a doer-upper, a great deal, or a buy-to-let investment, iamsold is the UK’s number one Residential Property Auctioneer and has hundreds of properties to choose from. Start your search today!
*Based on standard properties. From receipt of draft contracts
^ Source: Home Owners Alliance Article 2022