You have been researching property auctions, which you think may be the solution to your problems, but you are wanting to understand the differences between the tradition and modern online auctions, to see which would be the best option for you when selling your house.

There are similarities and differences in the 2 way of selling, which will suit people differently, depending on individual circumstances. We expand on them below, but the main differences are:

Traditional property auctions – these are events held on specific dates, times and locations (often auction houses) located locally to the properties being sold. More run down, hard to mortgage and cheaper properties are still sold via this way, and they cost some dollar.

Modern online property auctions – these are online listings which prospective buyers can bid on at any time, any date, until the auction ends. New and old properties are sold in this way and often achieve higher than asking price. These are usually free to sell.

The main similarities are:

• Both auctions attract cash buyers, due to the fast-paced nature of the transactions, which is convenient for investors and landlords.
• Starting bids and reserve prices are agreed with the seller. The reserve price is secret and not made public to the buyers.
• Both ways of auction are on average quicker to sell and complete than going through the estate agent route.
• In both auction methods, solicitor legal packs are conducted before the property goes live on auction. When the hammer goes down, legal contracts are exchanged straight away, deposits are paid and the property is sold and completed within 28 days.

What are the differences?

Traditional property auctions

Date, time and location – a date is set in the future for when the auction will take place. This may be a few weeks or months from your initial decision to put the property on auction, as there has to be time to market the property and generate interest. A location will be set, which will be an auction house locally to the property. Lastly, a time will be set for when the property will be auctioned, for prospective buyers to come and bid on the property.

This can be limiting as some buyers may not be able to attend on the day due to other commitments. This is especially limiting for people, investors and landlords who don’t live locally, but want to buy or invest in the area. This greatly reduces the buyer pool.

High selling fees – there are fees associated with selling your property via auction which are calculated as a percentage of the total value of the property. This is usually 2-3% which is similar to estate agent fees. Fees are charged to both buyers and sellers in this method.

Run down condition of properties – traditionally, the auctions saw properties that were more run down and ones that sellers wanted to get off their hands quickly. These properties may not be mortgageable, in need of repairs and people rarely lived in them due to their condition.

Selling for lower price – as the condition of the properties were usually in a state of disrepair, the price often had to be a reflection of it and the risk the buyer would be taking on. Traditional property auctions do not work best for people who want to get as close to market value for their property for this reason.

That is the main gist of the main points to consider when selling a property by way of traditional auction.

As the world is modernising, the property sector is as well. Our modern online auctions have been operating since 2009 and gaining more and more traction, due to a combination of the benefits of the traditional property auction e.g. selling fast, and then putting a modern and convenient twist on it.

Modern online property auction

No strict date, time or location – everything is online 24/7 – the properties go live and are put on an individual countdown of their own. They are based online, and able to be accessed 24/7 by anyone in the world from their laptop or phone. The auction cycle runs for 28 days with a set end date, and they have their own clock ticking down. There is no need to attend on any days or locations.

This is a more convenient way for prospective buyers to view all available properties in the UK, and have access to bid on them, which opens up the buyer pool. As this is online, this also opens up for international investment from abroad.

Free to sell – our modern online auctions provide the service and platform for the sale of the property free of charge for sellers. You can list and sell your property for free, as we believe this is a fair and that you should get 100% of the sale proceeds. We are able to offer this, as all the fees are covered by the buyer when they buy your property.

New and liveable properties – modern property auctions see properties in all conditions, shapes, sizes and crazy personalities. Our auctions see new builds, modern flats, family homes, rental properties and everything in between. The odd house is old and needing some TLC, however, over 90% of our properties are owner or renter occupied. Click our live auction properties and see for yourself.

Selling for higher price – as properties are in a great and liveable condition, the pool of buyers is wide and the bidding is open to everyone nationally and internationally, you best bet that it will be in high demand. Buyers will become invested and bid against each other, driving the price up and often going over the reserve price. We find this happens in most cases in our modern online auction, with over 80% of our properties selling for over reserve price. See our auction successes to see our great results.  

Which auction method is right for me?

This all depends on your individual circumstances, motivations to sell your property and how fast you are needing to sell. If you want to sell your property for free, fast within 28 days, for the right price and in the most convenient way, then the modern online property auction will be able to provide this.

Get in touch with us below, and we can discuss whether the modern online auction route is right for you.