Property Auction: BIDDING

This blog post is for all of you newbies to property auctions. This a guide on how to bid, why to bid and everything you need to know about property auctions. When you go to buy a property, there is more options than the simple purchasing. Property auctions provide speed and security!

There are two methods of bidding; the 'Modern Method' and the 'Traditional Method'.

With the modern method, the bid means the buyer has to pay a reservation fee or a deposit and they must sign a reservation form. The buyer can reserve the right to unconditionally exchange contracts on the property at an agreed price withing 28 days and complete 28 days after. This is a good method for the purchasing of residential properties.

However, with the traditional method, contracts are exchanged immediately with completion raking place within the next 28 days. This method is more suited with professional property buying. A 10% deposit is required, and in some occasions a reservation fee is needed as well. There is complete security with this method also.

What are reservation fees you may ask? 
When a reservation fee is due, it will be clearly stated on the specif terms and conditions. You should check before bedding on any property if it has a reservation fee. Sales have a reservation fee which covers the costs of the business. It is a percentage of the final selling price and is added on-top. The fee reserves the property for the buyer but it must be paid at the end of the auction by the successful bidder. If the sale was to fall through due to the vendor, the reservation fee will be refunded.

How to bid?
Buying a property through the auction couldn't be easier! It is a quick & easy process which can be done from home, your office, 24 hours a day, 365 days a year! They can be placed thought the bidding websites or over the phone.

Is it secure?
The auction method gives transparency for both the seller and the buyer. This is because the sale s in in the public domain so the fear is completely remove. A secure transaction is guaranteed!

How quickly do you have to pay?
Depending on the method you choose, you will have between 28 and 56 days to complete the property. If you are purchasing through the modern method there is enough time for you to use residential auction finance.

If there are any more questions you would like to ask or any queries you may have, you ask one of experts at Birmingham city centres leading estate agents, Glocal Residential on the email info@glocal-residential.co.uk!