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The Modern Auction Success

This property sold in just 2 weeks, at £20K over the starting price with 0% agency fees by the Modern Auction Method.  How does this method work and how does it differ from the traditional auction.

We have just sold this property in Malvern in 2 weeks using the Modern Auction Method.  It attracted 16 bids and sold for £20K over the starting price with 0% agency fees.

There are two ways of auctioning a property. The traditional auction, an unconditional sale and the modern auction, a conditional sale.

In a traditional auction, conducted in a sale room, the transaction is legally binding for both bidder and seller the moment the hammer falls. A 10% deposit is paid on agreement of sale and contracts are exchanged immediately. A period of 28 days is allowed for completion of contracts.

A modern auction is live for a set period of time, normally 30 days, and at any point during this period a prospective buyer can place a bid. At the end of the auction the successful bidder pays a reservation fee.

The vendor can opt to pay no fees and whatever the property sells for the vendor keeps. However, there is a small cost to sellers for the preparation of an EPC and Auction Pack. On the acceptance of an offer or at the close of the auction, the buyer places a non-refundable reservation fee and we charge the buyer a percentage of the purchase price to cover our costs. The buyer is then given 56 days to exchange contracts and complete the purchase.

Stuart Bass, Manager at Andrew Grant Malvern said “We are obviously delighted with how well our first Modern Auction has gone.  This way of selling a property offers a transparent bidding process and fixed time scales for exchange and completion give confidence to both the vendor and buyer.  A set reserve price ensures that the property will only sell for what the vendor is happy with.”

If the sale falls through due to an act of the vendor, the reservation fee will be refunded to the buyer in full. If the sale falls through because of the buyer’s actions, it is non-refundable.

Stuart went on to say “We will be selling another property using the Modern Auction Method in the coming few weeks.  It’s a unique property, with extensive grounds, and views up the hills.  We’re excited to be using this way of selling again.”

 

 

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