This method of auction is often best suited to cash buyers and investment properties as on the fall of the hammer contracts are deemed to have been exchanged and the buyer then has 28 days to complete the purchase. The buyer pays a 10% deposit on the day of the auction to secure the sale. While this method has been in operation for a long time it is not very “user friendly” and can limit the market for non-investment sales whereby a traditional buyer would need to secure a mortgage to finance the purchase.
Under the “Modern” auction method on the fall of the hammer the buyer pays a non refundable deposit and is then allowed 28 days to exchange contracts with a further 28 days to complete the contract. While this method is not quite as secure (contracts aren’t immediately exchanged on the fall of the hammer) it does allow conventional buyers requiring mortgage finance to buy property at auction.
Our dedicated auction team will be happy to discuss the merits of buying at auction and would be happy to assist with any questions you may have.