Conditional Auction: Also known as the modern method of auction is a way for your property to be sold (subject to contract) via auction to purchasers who have not got their finance for the purchase in place yet. At the end of the successful auction the purchaser is asked to pay a non-refundable fee to secure the property and to give them 28 days to exchange on your home. Should this not occur then the property is unsold and your purchaser loses his fee.
You are able to sell your home with no agent’s fees by this method as a reservation fee is paid by the potential buyer to secure the right to buy your property. However, the sale may not continue to exchange, should this occur your property will subsequently be re-offered at the next auction.
Unconditional Auction: Also known as the traditional method; when the gavel goes down your home is sold and should it not complete, you, as the vendor, will receive the normal recompense from the buyer. This is very unlikely as the buyers who purchase at this type of auction tend to be experienced in this type of purchase, have finance in place and are ready to complete in 28 days.
Unlike the modern method, the fees are paid for by the owner of the property and are usually less; therefore, as buyers have a maximum bid to include fees, it is possible to receive more for your home, buyers are able to proceed and your home will exchange on the night of the auction if it sells.