The perks of buying at auction
Auctions offer a fast, dynamic way to secure homes and investment opportunities at competitive prices. With quicker completions than Private Treaty and the convenience of bidding online 24/7, it’s a simple process. Our Modern Method of Auction also allows you to buy with a mortgage, offering an extended 56-day completion period. Plus, the Binding Reservation Agreement ensures both buyer and vendor are committed to completing the purchase.
Modern Method Auction (MMoA)
This is our most popular auction method as it combines elements of Private Treaty and auction. It provides the speed, transparency and security of a traditional auction but exchange and completion take place within 56 days from receipt of draft contract. Here are some things to consider:
Buyers should be aware that a 4.2% non-refundable Reservation Fee must be paid within 2 hours of the auction closing if they are the successful bidder. This fee is in addition to the final purchase price and should be factored into the total budget. It's essential to ensure that sufficient funds are available on auction day to cover this fee.
In certain cases, sellers may choose to cover the auction fees, in which case buyers will need to pay a Reservation Deposit instead of the Reservation Fee. This deposit is typically also 4.2% of the purchase price and counts towards the final purchase price. Buyers must clarify which option applies to their situation to avoid any surprises.
Buyers are required to complete the purchase within 56 days of receiving the draft contracts. To facilitate this, it is advisable to secure a mortgage agreement in principle before the auction. This preparation ensures that buyers can move quickly and meet the necessary deadlines once they win a bid.
Understanding the auction process
Buying a property at auction is simple and quick when you follow our step-by-step checklist below. By understanding each step, your auction journey will be smooth and hassle-free.
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Frequently asked questions
Do you still have questions or need more information? Feel free to browse our guides or contact our team.
It’s essential to do your research on the property and comparable sales in the area. Consider your budget and any additional fees, such as the Reservation Fee. We also provide insights and guidance to help you determine a competitive bid.
If you win, you’ll need to pay a Reservation Fee within a specified time frame, typically 2 hours after the auction closes. You’ll also have a set period (28 or 56 days) to complete the purchase, so ensure your financing is ready and your solicitor is instructed.
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