Peter Morgan is excited to announce that they’ll be offering the Modern Method of Auction (MMoA) in 2020.
But, what does it mean, how does it work and how can sellers benefit?…
The traditional Private Treaty sale is the most common method of residential property sales in the UK. However, it can be a slow solution for sellers looking to complete their property sale quickly and securely and is far from ideal when life circumstances change and a sale needed quickly.
The traditional methods of selling have become unsuitable for many. Many agents are still yet to adopt modern marketing methods leaving vendors confined by limited, slow and unreliable ways to sell their properties. As we now live in a fast-paced digital age, improved online methods are needed.
When it comes to auctions, many perceive them as dated and a way of selling old, run-down stock for cash-ready investors. However, the Modern Method of Auction aims to benefit a wide range of residential sellers and buyers.
What is the Modern Method of Auction (MMoA)?
The Modern Method of Auction is an alternative method for selling a property. It has been designed to help motivated vendors sell their property in a transparent, secure and faster way than they would through purely traditional methods.
The MMoA combines traditional methods with modern methods to get the best result for the seller.
How does the Modern Method of Auction work?
The traditional auction method usually takes place at a live auction event where the buyer makes a cash payment of 10% deposit, exchanges contracts straight away and completion takes place 28 days later. This type of auction is limited to investors and cash buyers that are in a position to act on impulse.
The Modern Method of Auction usually takes place online, creating a larger marketplace of increased exposure, interest and activity. This method is often best suited to sellers that are looking for the speed and security of an auction with a larger buyer market.
This method still offers the security of the traditional auction as the buyer pays a non-refundable reservation fee and signs a reservation form to commit to the purchase.
Unlike traditional auctions that are a cash-only environment, the MMoA offers extended timescales of 56 days to allow for mortgages to be prepared. This gives ‘normal’ residential buyers and even first-time buyers the ability to purchase an auction property.
MMoA is fast becoming the preferred route for buying and selling via auction and will give the property industry a much-needed shake-up.
The benefits of selling your home with the MMoA
- No sale, no fee
Enter your property into the auction for free and only pay the auction pack fee of £445.00 if your property sells.
- 0% commission to sell
The buyer pays a non-refundable reservation fee, typically 4.2% including VAT of the purchase price, subject to a minimum of £6,000 including VAT.
- Transaction security
With the buyer paying a non-refundable reservation fee and signing a reservation agreement, 95% of transactions go on to complete, compared to Private Treaty transactions where on average 70% fail – leaving buyers and sellers with costs and unnecessary hassle.
- An undisclosed reserve price
Each auction has a hidden reserve price which is set by you to ensure you always achieve a purchase price that you are happy for the property to sell for.
- 56-day completion
A timeline that benefits all and makes the process run as smoothly and as quickly as possible. The average completion rate is 44 days, compared to 126 days for Private Treaty.
- Greater property exposure
As well as featuring on our website, in our branch windows and on other online property portals, your property will also feature on the online bidding facility which is accessible 24/7. This means more people will see, view and bid on your property.
- Fair market value
Competitive bidding can drive up the final selling price of your property. The more interest in your property, the higher the bids will go.