Modern Auction Solicitors
If you are looking for a cheaper way of buying a property you may have come across the term ‘Modern Auction’, but what is a Modern Auction?
What is a Modern Auction?
A Modern Auction is a method of buying a property through an auction process. As with other property auctions you place a bid, but in a Modern Auction, you are not committed to purchasing the property. In a Modern Auction, the purchase is conditional up until the exchange of contracts. Call 01473 229888 for a quote.
Modern Auction Fees
However, the fees are usually higher, and you will need to pay a Reservation Fee which is typically around 4% to 5% on the purchase price. This fee is paid in addition to the purchase price and is non-refundable. Equally some auctioneers will ask for payment towards the legal pack.
The timescale for a Modern Auction
Usually, the timescale for a Modern Auction is 28 days but some auctioneers may allow up to 50 plus days. The timescale is typically fixed, therefore instructing a Modern Auction solicitor you should check they can complete the work required in the timescale.
Plus, this will also allow you tie to arrange a mortgage should you require one.
Modern Auction Lawyer
Advice on purchasing a property via a Modern Auction
Firstly, view the property. Supposing you purchase a property without viewing it, you are running the risk of purchasing a property that’s going to cost you too much to repair or cannot with rented out without major works.
A common adjective is that you make your money when buying, not when selling. Therefore, by viewing the property you will have a clear understanding of the cost involved which could make you money when purchasing.
Bidding at a Modern Auction
Equally bidding sensibly. By having a clear idea of cost and a potential rental income or selling price you can bid sensibly. Have a maximum bid in mind and stick to it.
But equally, remember – buyer beware. Always have the legal pack reviewed by a Modern Auction solicitor before placing on a bid. Consequently, by not having the legal pack reviewed you could be at risk of losing your Reservation Fee or purchasing a property with costly issues.
Mortgages
In addition, if you are purchasing with a mortgage, you need to ensure you can obtain a mortgage within the timescales. Also, your Modern Auction solicitor will be able to advise you if the property is mortgageable. You may feel this isn’t an issue if you are a cash buyer, but if the leasehold agreement requires extending for example a future buyer, purchasing from you, may struggle to obtain a mortgage.
For more help and advice on Modern Auctions please Attwells Solicitors on 01473 229200 or email Tanya Warnes
Additionally, I oversee Attwells’ auction conveyancing team and attend local property auctions in the Ipswich area to offer advice to prospective auction purchasers.
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