Thinking of selling at auction? Great choice.

There are two types of auction in the UK. Which is right for you?

Buying and selling houses at auction is becoming increasingly popular. Whether you’re looking to sell your family home, a second property or a buy-to-let, auctions could be the right option for you. 

In fact, you’ve got no chain, no risk of delays, no gazumping and the whole process can take as little as 56 or even 28 days to complete, depending on the type of auction.

If you’re still in two minds, here’s a little more information to help you make your decision.

Why would you sell a house at auction?

Whether you have a fixer-upper or a flashy five bed, auctions offer simplicity and speed of sale. Often properties with issues such as short leases, structural problems, or unmortgageable rooms are put into auctions. You open up to a wider circle of potential buyers and you can complete quickly, so you get the cash in your pocket sooner. 

What are the two property auction methods in the UK? 

There are two ways that a sale can take place at a property auction – these are ‘traditional method’ and ‘modern method’.

The Modern Method:

With the modern method of auction, contracts don’t have to be exchanged straightaway. Instead, your buyer will pay a small fee to reserve the property, which is non-refundable. The buyer then has 56 days to exchange contracts and complete the purchase. 

The Traditional Method:

If a buyer successfully wins the bid for your property at an auction that uses the traditional method, they’ll exchange contracts as soon as the hammer falls and then pay a 10% deposit then and there. This represents a legally binding contract between the buyer and seller. The buyer will then have 28 days to complete the purchase.