Different Auction Methods and Which is Right For You
There has been a lot of recent press about the rise of the 'online auction' and how some of the methods being used are confusing to both seller and purchaser. With this in mind, we wanted to give a breakdown of the types of auction methods available, and to re-iterate the method that we use at Dawsons Property Auctions, so that there is NO CONFUSION for people just starting out on their 'auction journey'.
First and foremost, what type of Auction Method do we use at Dawsons?
For anyone local, who has been using our auctioneering services for any of the 30 years we have been running our traditional auctions, will know that we have only gone "online" since COVID-19 forced us to close our auction room doors at the Swansea Marriott last March 2020! So the method of auction we use online is EXACTLY the same as in the auction room, except that the bidding takes place over a period of 12 hours online, and in exactly the same way as the auction room process, when the hammer falls, the buyer has to place their 10% deposit down and complete within 28 days.
In terms of speed, the traditional method of auction says that your property or land will be auctioned ‘in room’ to bidders as well as other sources including internet bidders, telephone bidders and bidders via proxy. Once the gavel falls to the highest bidder contracts are exchanged immediately with completion just 28 days later. From instruction of the property we will market the property anywhere between 4 to 6 weeks pending the completion of the legal pack, we will then set an auction date. The Auction normally lasts 24 hours starting and finishing at 12 noon.
All interested parties will be contacted, and they will be advised of the auction date and the registration process.
The modern method of auction is different and shares similarities with ‘eBay’ style bidding where buyers bid online only and once a bid has been accepted the buyer has 28 to exchange and a further 28 days to complete. We must understand that exchange is not immediate as it is with the traditional method of auction meaning the timeline is increased. In fact, the general timeline for the MMoA is 56 days.
Security - Many people turn to auction after experiencing a fall through or even numerous fall throughs. Anyone who has been in this situation knows the journey can be extremely stressful. Time is a precious commodity, something we are all learning through this pandemic, just how precious it is.
The traditional method of auction states that once the gavel falls contracts are exchanged immediately and the sale is legally binding meaning neither the buyer nor seller can pull out. The risk of fall through is eliminated. If there are breaches, post exchange, the breacher will undertake serious penalties. Such situations are very rare.
So, before you get involved in the auction process, why not watch one of our properties and see how it works for yourself.
1. Go to our current auction page HERE
2. Scroll through and take a look at the properties available, stop when you find one that has the BID NOW button.
3. Register for a free account if you wish to, or watch for the date of the auction opening & closing.
4. Our busy auctions happen online, on our FACEBOOK PAGE - click HERE to follow us.
5. Join in the fun and excitement as the bidding reaches it's crescendo!
You will see that when the final hammer falls, it means that the property has exchanged and the buyer pays their 10% deposit - and completes within 28 days.
The other major benefit of using the TRADITIONAL METHOD OF AUCTION is that fees are not excessive and are not paid by the buyer.
For more information about our Auction Team and Process, please get in touch!
TEL: 01792 478903 / 478904
or visit our Auction Dept at 11 Walter Road, Swansea.