What is Modern Auction?

Modern Auction is a method of selling which provides both vendor and buyer with the promise of speed and a more stable, secure transaction.

What Does Buying a Modern Auction Property Mean To Me, and Why Are More People Selling This Way?

There are some myths surrounding modern auction properties - they can’t be sold traditionally, there’s issues getting a mortgage due to structural problems etc.

More commonly, they are sold this way due to circumstance, and the property is fine. Typical issues are maybe the vendor (seller) has been messed around by a previous buyer and their onward purchase is in jeopardy or that funds are needed by the family to pay for care home fees, or simply because there is no upward chain so rather than the property sit empty, they would like the transaction to complete quickly!

As the buyer you’ll be asked to pay a deposit, and it is possible to include this in the purchase price as your deposit – however, you must make the auction company aware of this. This secures the deal for you, so other interested buyers can’t offer more than you and put you in a bidding war.

When it comes to paying for solicitors searches for example, you will have more information available early on, helping you avoid paying higher solicitor fees for aborted purchases. Did you know that modern auction properties fall through rate is around 2.8% nationally? Traditional buying is 33%! How Does Modern Auction Work? You arrange a viewing through the agent as usual. After the viewing if you like the property and would like to make an offer you can do one of two things; either give a ‘buy it now’ offer or bid online in the auction itself. You are welcome to see the auction pack, searches and even have a survey done on the property before offering and as part of your due diligence. Once the offer has been agreed, you pay your reservation fee and the sale is closed.

What are the Benefits of Modern Auction?

Speed – Searches are applied for in advance which means that solicitors can work to the deadline of 56 working days (traditional sale is currently taking on average 150 days). The 56 days also means there is enough time to be able to obtain a mortgage on the property.

Security – Once you have your offer accepted and you pay your reservation fee, no other offers can be accepted. In traditional methods of buying and selling gazumping is not illegal, the Modern Auction Method of buying prevents that from happening.

Options - You can still buy as a Cash Buyer, Mortgage Buyer or with a Bridging Loan just as you can with a Traditional Purchase. Some people are scared that they have less options, but you don’t!

Transparency – You can bid 24/7 online and see which bids other people have made. The legal pack is prepared and available up front which contains the legal information that your solicitor would usually collate after a sale is agreed. Being available upfront, you can check or have this checked (by a solicitor) to enable you to proceed with confidence. The property is also fully available to complete your due diligence, you can even have a survey on the property which I would be happy to arrange for you, or you can have a tradesman inspect the property on your behalf. We only recommend any buyer commit to a purchase once they have completed their due diligence.

Can I Have A Mortgage When Buying Via Modern Auction?

Yes! Some people seem to think that you can only buy with cash or a bridging loan when buying via modern auction but I have arranged many ‘normal’ mortgages for people buying via the modern method of auction.

What Other Benefits Are There?

Buying a house is often described as the most stressful time. Everything is a bit clearer with these transactions.

Also, there’s a real lack of understanding about buying this way, that’s probably how you found yourself reading this, and the fact you have gets you ahead of the game. When you put a deposit down a key benefit is you’re backing up your ability to buy. Many people shy away from modern auction because they don’t understand it, others who wanted to offer get put off when it comes to putting a deposit down. What does that mean? You’re competing only against ready to go buyers, and the price you’re paying isn’t being inflated by those without an intention to buy it.

Who Can Have A Modern Auction Mortgage?

Employed, self-employed, contractors, newly qualified, those with adverse credit. Modern Auction Mortgages do not rule anyone out, you just have to know which lender to go to that fit with your criteria, before committing to the property and paying the reservation fee have a chat with me and let me ensure that I can get you a suitable mortgage to proceed.

My name is Vicki, I have two children and a dog at home. I enjoy getting them all out for walks or going camping with family friends. I am a dedicated specialist for Modern Auction Mortgages, I chose to go down this route as I have experience of working as an Estate Agent for the last two and a half years where I helped people sell and buy via Modern Auction. Now that I work as a Mortgage Broker it made sense for me to specialise in an area that I am passionate about but feel people do not have enough understanding and will be there for benefit from the extra guidance. I am always happy to have a telephone call, zoom meeting or face to face meeting to answer any of your questions and see what I can do to help you secure your Modern Auction Mortgage! Begin Your Journey