Traditional Property Auction
When you think of an auction, the traditional method is likely what comes to mind. In this process, the property is sold to the highest bidder, with the exchange of contracts occurring immediately when the auctioneer’s hammer falls. The completion of the sale typically follows within 28 days.
Modern Property Auction
The modern property auction also takes place online but differs significantly in its process. Unlike the traditional auction, the property does not exchange hands immediately when the auction ends. Instead, the winning bidder enters into an exclusivity agreement, granting them 28 days to exchange contracts. This approach is particularly beneficial for buyers needing time to secure mortgage financing, broadening the pool of potential bidders beyond just cash buyers.
Key Points
- Traditional Auction: Immediate exchange of contracts upon auction end, with completion in 28 days.
- Modern Auction: Winning bidder enters an exclusivity period of 28 days to exchange contracts, accommodating those requiring mortgage financing.
In both auction types, the winning bidder must adhere to the auction terms, and the Buyer’s Premium is payable.