Sale of property by auction is becoming much more popular as it has numerous built in advantages for both buyer and seller. The main advantage being that once the hammer goes down both buyer and seller exchange contracts immediately and there is a level of certainty unlike regular sales.
The dynamic property group work exclusively with Auction North Ltd who are our preferred auctioneers and operate with a partner network in excess of 30 agents throughout the North East. The combination of our highly targeted marketing and the regional presence of Auction North offer our clients the highest market exposure for their properties.
Traditional Auction
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.
Modern Method of Auction
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.