![\"traditional](\"https:\/\/tppuk.com\/wp-content\/uploads\/traditional-property-auction-ST.webp\")
<\/figure>\n\n\n\nWhile selling your home via a modern property auction follows the same principles as putting it under the hammer, there are differences to be aware of too. In this guide, we look at what precisely a modern property auction is, how to sell your house<\/a> at auction, and the pros and cons of using it versus traditional property auctions.\u00a0<\/p>\n\n\n\n There are two different types of property auction:<\/p>\n\n\n\n These can take place in person in an auction house or, more conveniently, online<\/a>.<\/p>\n\n\n\n Modern property auctions take place online and have quite different rules and timescales from the traditional method. Some people don\u2019t think they should be called auctions at all, instead referring to them as a modern method of selling.<\/p>\n\n\n\n There are many reasons why properties are sold at auction rather than in the usual way. A good estate agent may recommend this as the best way to take your property to market to achieve the highest possible price. Often it is because the home is hard to sell for some reason \u2013 it may be in a poor state of repair, have been repossessed by a bank or represents a development opportunity.<\/p>\n\n\n\n Sometimes auction properties are hard to mortgage, attracting only cash buyers. However, people needing a quick sale or whose properties aren\u2019t shifting via the estate agent method also look to auction their homes.<\/p>\n\n\n\n In a traditional auction, several properties are sold in turn on a set day. There is usually a starting or guide price and a reserve price, which must be met for the home to sell. All bids taken are legally binding. If you are the highest bidder, and your bid exceeds the reserve amount, you will exchange contracts and pay a 10% deposit immediately.<\/p>\n\n\n\n If you change your mind, you will lose the deposit and may be liable for further costs. Traditional auctions attract all kinds of bidders, including professionals who understand the system and are confident in making bids. Interestingly, we have noticed increased female bidders since moving to online auctions. Buyers must complete the purchase within 28 days \u2013 a quick turnaround for anyone looking to secure a mortgage, which is also why they tend to attract cash buyers.<\/p>\n\n\n\n Modern auctions operate online \u2013 in much the same way as eBay auctions. With modern property auctions, winning bidders pay a 5% reservation fee and must exchange contracts within 28 days \u2013 not immediately, completing within 56 days of the auction.<\/p>\n\n\n\n The longer timeframe means this method may attract a wider pool of buyers and is more likely to include those who need a loan to fund the purchase. However, if the buyer fails to secure a mortgage, they will be unable to exchange and complete, and so will lose their 5% reservation fee. Estate agents rather than property auctioneers often arrange modern property auctions.<\/p>\n\n\n\n The main differences between a traditional and modern method of property auction are:<\/p>\n\n\n\n Traditional and modern property auctions usually mean a quicker sale, and you\u2019ll generally achieve a higher price for the home than from a house-buying company, often with estate agency help available. However, there are differences and both the traditional auction and modern method of auction have pros and cons.<\/p>\n\n\n\n A conditional auction is another term for the modern method of auction \u2013though the buyer commits, the winning bid is not legally binding. An unconditional auction is another name for the traditional method of auction \u2013 buyers agree to purchase the property without condition.<\/p>\n\n\n\n While the buyer pays the auction fees, the seller pays for a legal pack costing \u00a3400 to \u00a3500 containing legal documents such as searches, the title register from HM Land Registry, and conditions of sale. Budget \u00a3200 to \u00a3500 for the management pack if you\u2019re selling a leasehold property.<\/p>\n\n\n\n Choosing the best auction type will depend on your circumstances and motives for using an auction to sell your home. If you want to repair a broken chain, need the cash urgently, or are selling a hard-to-mortgage property, traditional auction offers can be faster and more binding. The modern method may suit more conventional properties, attracting a wider pool of buyers and perhaps a higher selling price.<\/p>\n\n\n\n If you\u2019re looking to sell your home in North Wales<\/a>, talk to us. We can advise you whether selling your Ynys M\u00f4n<\/a> neu Gwynedd<\/a> property in the usual way or by auction will work best in your circumstances. As a start, why not book a no-obligation market appraisal<\/a> today?<\/strong><\/p>","protected":false},"excerpt":{"rendered":" If you need to find a buyer quickly to save the chain, or draw a line under your divorce by selling your home fast, then you may want to consider property auctions. In our guide, we explain the differences between a modern property auction and a traditional property auction. There are pros and cons to each, such as how the auction actually works, the timelines involved, and any costs the buyer needs to cover. Read on to find out about the traditional auction and modern method of auction before you make up your mind. <\/p>","protected":false},"author":9,"featured_media":1123920,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[91],"tags":[90],"class_list":["post-502096","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-sales","tag-vendors"],"acf":[],"yoast_head":"\nWhat are the different types of property auctions?<\/h2>\n\n\n\n
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Why do properties go to auction?<\/h2>\n\n\n\n
How does a traditional auction work?<\/h2>\n\n\n\n
![\"modern](\"https:\/\/tppuk.com\/wp-content\/uploads\/modern-method-of-auction-ST.webp\")
<\/figure>\n\n\n\nHow does a modern auction work?<\/h2>\n\n\n\n
What are the main differences?<\/h2>\n\n\n\n
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What are the pros and cons of auctions?<\/h2>\n\n\n\n
Pros of traditional auction<\/h3>\n\n\n\n
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Cons of traditional auction<\/h3>\n\n\n\n
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Pros of modern method of auction<\/h3>\n\n\n\n
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Cons of modern method of auction<\/h3>\n\n\n\n
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Frequently asked questions<\/h2>\n\n\n\n
What is a conditional vs unconditional auction?<\/h3>\n\n\n\n
What are the fees & costs for modern and traditional auctions?<\/h3>\n\n\n\n
Which type of auction is best for me?<\/h2>\n\n\n\n