Understanding Traditional vs Modern Method of Auction
When buying or selling at auction, it’s important to understand the key differences between the Traditional (Unconditional) Auction and the Modern Method (Conditional) Auction. Each offers distinct advantages depending on your circumstances, financing options, and the level of speed and security required.
This guide will explain how both methods work, the timescales involved, and the benefits each approach offers to buyers and sellers. Use the slides below to explore the differences and determine which auction route best suits your needs.
If you have any further questions, our auction team is always available to assist.
Traditional Auction
Modern Method Auction
Traditional vs Modern Method
What are the advantages of buying at auction?
With a traditional, or unconditional auction sale, contracts are exchanged on the fall of the gavel and the sale typically completes 20 working days later.
This presents buyers with several advantages. Firstly, there is no chance of getting gazumped, the vendor changing their mind about selling or deciding they want to accept a higher offer after yours has been accepted.
Secondly, because a vendor has to provide and pay for a legal pack, it filters out those who aren’t really serious about selling.
The modern method of auction, or a conditional auction sale, is similar to the above. However, at the end of the auction, buyer and seller enter into an exclusivity period where the buyer has 56 days to exchange and complete. The advantage here is this time period allows the buyer to secure more traditional finance, usually in the form of a residential mortgage, on the property.
We offer our traditional auction sales to both in-room and online auctions. We hold eight in-room auctions throughout the year, and the details of each sale will be clearly noted on the marketing materials with the schedule on our website.
For our online auction sales, Lots may be offered on a conditional or unconditional basis. Again, please look at the marketing information for details on the land or property you are interested and if in doubt, please ask a member of the auction team who will be happy to guide you through the process.
What are the advantages of buying and selling by auction?
With a traditional, or unconditional auction sale, contracts are exchanged on the fall of the gavel and the sale typically completes 20 working days later.
It is usually a much quicker sale with an unconditional auction. There is no ‘sold subject to contract’ period, which means once the gavel has fallen, contracts are exchanged and there can be no renegotiation, and the buyer and seller are legally bound to the transaction.
The full 10% deposit (minimum deposit £5,000) is taken immediately after exchange. Some sellers achieve more through auction than they could have done on the open market. Other sellers achieve about the same figure, and some achieve less. However, all sellers achieve speed and security in their transaction.
Timescales are usually longer with a modern method of auction sale which give owner-occupier buyers a better chance of being successful, rather than an investor who may have their finance already in place. Plus, the longer period of time allows buyers to carry out their due diligence and should mean they feel less pressured and therefore, often more confident in offering that little bit more for the Lot.
In addition, buyers who can only buy with a residential mortgage are able to participate in a modern method of auction sale. Naturally, this would be down to the condition of your property and our auction team will be able to give you advice on which route of auction is more suitable for your circumstances.
This presents buyers with several advantages. Firstly, there is no chance of getting gazumped, the vendor changing their mind about selling or deciding they want to accept a higher offer after yours has been accepted.
Secondly, because a vendor has to provide and pay for a legal pack, it filters out those who aren’t really serious about selling.
The modern method of auction, or a conditional auction sale, is similar to the above. However, at the end of the auction, buyer and seller enter into an exclusivity period where the buyer has 56 days to exchange and complete. The advantage here is this time period allows the buyer to secure more traditional finance, usually in the form of a residential mortgage, on the property.
We offer our traditional auction sales to both in-room and online auctions. We hold eight in-room auctions throughout the year, and the details of each sale will be clearly noted on the marketing materials with the schedule on our website.
For our online auction sales, Lots may be offered on a conditional or unconditional basis. Again, please look at the marketing information for details on the land or property you are interested and if in doubt, please ask a member of the auction team who will be happy to guide you through the process.
What is the difference between traditional and modern method auction?
With a traditional, or unconditional auction sale, contracts are exchanged on the fall of the gavel and the sale typically completes 20 working days later.
It is usually a much quicker sale with an unconditional auction. There is no ‘sold subject to contract’ period, which means once the gavel has fallen, contracts are exchanged and there can be no renegotiation and the buyer and seller are legally bound to the transaction.
The full 10% deposit (minimum deposit £5,000) is taken immediately after exchange. Some sellers achieve more through auction than they could have done on the open market. Other sellers achieve about the same figure, and some achieve less. However, all sellers achieve speed and security in their transaction.
Timescales are usually longer with a modern method of auction sale which give owner-occupier buyers a better chance of being successful, rather than an investor who may have their finance already in place. Plus, the longer period of time allows buyers to carry out their due diligence and should mean they feel less pressured and therefore, often more confident in offering that little bit more for the Lot.
In addition, buyers who can only buy with a residential mortgage are able to participate in a modern method of auction sale. Naturally, this would be down to the condition of your property and our auction team will be able to give you advice on which route of auction is more suitable for your circumstances.
This presents buyers with several advantages. Firstly, there is no chance of getting gazumped, the vendor changing their mind about selling or deciding they want to accept a higher offer after yours has been accepted.
Secondly, because a vendor has to provide and pay for a legal pack, it filters out those who aren’t really serious about selling.
The modern method of auction, or a conditional auction sale, is similar to the above. However, at the end of the auction, buyer and seller enter into an exclusivity period where the buyer has 56 days to exchange and complete. The advantage here is this time period allows the buyer to secure more traditional finance, usually in the form of a residential mortgage, on the property.
We offer our traditional auction sales to both in-room and online auctions. We hold eight in-room auctions throughout the year, and the details of each sale will be clearly noted on the marketing materials with the schedule on our website.
For our online auction sales, Lots may be offered on a conditional or unconditional basis. Again, please look at the marketing information for details on the land or property you are interested and if in doubt, please ask a member of the auction team who will be happy to guide you through the process.
Will a traditional or modern method of auction sale get me the most money for my land or property?
As the land and property markets are always evolving, and both auction formats continue to grow in popularity, there is no black and white answer to this. It all depends on the land or property type, the location, condition and any circumstances attached to a sale.
We offer three different routes when selling at auction, and the different routes will suit certain sellers better than others. Before committing to selling, an auction valuer will talk through the various options with you and help you choose the right route for you.
Will a traditional or modern method of auction sale get me the quickest sale?
An unconditional auction would usually get you a quicker sale.
Do you have to be a cash buyer to buy at auction?
No, not at all. You can buy via a conditional or unconditional auction with a mortgage, providing, of course, the property is mortgageable, and you adhere to the terms of the sale.
When buying with a mortgage, it’s crucial to use your time wisely and also ensure you use the right people, such as a solicitor, to help you get the job done quickly.
The additional time offered with modern method of auction sales means you have 56 days to get your finance in order before exchanging and completing.
What do you need to include in the legal pack for land or properties being sold by unconditional and conditional auctions?
Legal packs vary depending on the seller and their solicitor. All packs must include the Land Registry register and title plan, a contract or any special conditions, the Common Auction Conditions and an energy performance certificate (EPC).
Searches are normally included along with any paperwork relevant to the land or property, such as standard Law Society forms, tenancy agreements if the property has a tenant in situ or any other documents relating to the land or property. Essentially, there is everything a buyer will need to exchange contracts without any additional enquiries.
With a modern method of auction sale, searches must be included in the legal pack to allow potential buyers to apply for a mortgage.
Searches are recommended for inclusion in a traditional auction legal pack, and normally done so, but it’s not a requirement.
It is really important buyers check the legal pack BEFORE bidding – it sounds obvious but so many people still don’t do this.
What sort of properties are suitable for auction?
A really common misconception is auctions are only suitable for properties in a very poor condition that can’t be sold on the open market. As the process of selling by auction evolves, more and more properties are becoming suitable for auction.
Gone are the days of only selling ‘problem properties’ – although we still like these! We now sell properties to first time buyers and families as well as seasoned investors and therefore every type of property should be considered for auction.
The main factor on deciding whether to sell at auction comes from what you want or need from your sale. If you are looking for a route of sale that focuses on speed, security or transparency, then auction is often the best route of sale for you.