A property auction website, Under The Hammer, has added a new option to listings that lets buyers make an ‘instant’ property purchase.
The ‘secure now’ function will let buyers bypass the auction process on any listings that have been added by agents on the portal.
Sellers and agents are now also able to list properties for a fixed price, and rather than bidding, buyers can ‘purchase’ the property immediately at any time, and pay an exclusivity deposit to secure it.
The buyer will have to pay a deposit of 1.75% plus VAT, subject to a minimum of £2,250, plus an administration fee of £1,000 plus VAT.
Buyers can arrange to view the property first and must complete anti-money laundering checks before making an offer.
There are then fixed timescales to exchange and complete on the property transaction, with 28 days to exchange and a further 28 days to complete. If they do not, then they lose their exclusivity, but it is not clear whether they also forfeit their deposit money.
Thomas Gilday, an auction specialist at Under The Hammer, said: “In the past year, Under The Hammer has worked with hundreds of agents, property sellers, and buyers.
“In that time, we have learnt from comments, reviews, and suggestions from all three on how we can improve the service and drive forward the property revolution.
“At our core is speed, security, and transparency. The changes to our auction platform, and the exciting introduction of our ‘secure now’ service will help us improve the property buying and selling process in these areas even more.
“With our ‘secure now’ service, we’re able to offer immediate security of the transaction for our sellers, whilst also allowing for buyers to make an instant decision to purchase a property at any time, day or night.”
Comments (7)
As with all these things I suggest taking a look and having a personal demo. We have and it has been well worthwhile looking into where it could fit within our business model.
I think this is a brilliant idea! This will certainly eliminate a lot of time wasting within the current sales process.
Having worked in the industry for somewhat 20 years and a regular buyer myself, knowing a property can be purchased and locked in from all parties at any point is reassuring. negotiations can be frustrating, this will defiantly save a lot of time and hassle in the negotiation process.
A fee of 1.75% and a £1,000 is still a risk as im guessing it is no refundable? However, still better than companies offering Modern Method of auction which i have seen buyer fees upto 5%!
It would be interesting to know the agreement and fees between this company and its Estate Agents?
So do you think it is a ‘brilliant idea’ for the client, the vendor?
As with all things, it clearly is not for everyone. However for a client/vendor wanting a sound sale with a buyer who has to meet deadlines will be attracted.
This is similar to the way a lot of sales are done internationally and in my opinion it is better to tie into an agreement at the offset, than just a gentleman agreement not knowing where a sale could lead to.
Will be interesting to monitor this method
This is not an auction!!
It needs to be made clear whether or nor buyers will forfeit their deposit money if they cannot exchange. The £1,000 (which is effectively a reservation fee) is a fair risk to take, but to lose that plus the 1.75% makes the system even more onerus on buyers than the “Modern” Method and will result in even fewer buyers and/or lower offers to the detriment of the vendor.
With all these models it should be remembered that the primary legal obligation passes from the vendor to the purchaser when the vendor pays nothing and this needs to be explained to him/her under the Provision of Info Regs.
Exclusivity Deposit minimum £2250 + VAT. Auction Administration Fee of £1000 + VAT. But it’s not Modern Method at all.
What is this ebay? It gets better
“Buyers can arrange to view the property first ” Well that is reassuring