Going, Going, Gone!

People might have some old fashioned ideas and preconceptions about auctions - especially for houses - but the Modern Method of Auction is proving increasingly popular.

So how is it differerent? With an 'old' auction, once the hammer falls you'd exchange contracts and pay a deposit and then pay the rest within a month. With MMoA you now pay a reservation fee that gives you an exclusive period to but the house - but isn't legally binding. You then have 28 days to exchange and a further 28 days to complete. You also have a longer bidding process and you can bid online any time during this period.

For the first Guest Blog, Georgina Hambly writes about her experience using MMoA with her clients:

When Gavin asked me to write about why I use Modern Method of Auction I did laugh a little, because I probably use auction more than most agents in our network.

But I wasn't always a fan.

I've been an estate agent for around 18 years and years ago if somebody said 'auction' to me, I would have immediately thought of a property that needed a full renovation or something that had failed to sell in the normal way.

So when I first started looking at Modern Method of Auction I was sceptical. I didn't really get why I would use it instead of just selling a property in the normal way. I think what changed my mind was simply using it.

I started putting a few properties through iamsold, saw the results and then started to understand where it could really work. And actually, for me, it isn't always about the property. It's often about the seller.

I do a lot of probate, and I sell plenty of properties that need renovating, so naturally auction works well for a lot of those. But I also put normal family homes through auction. If I have a motivated seller who wants to get sold and wants some certainty, I will always discuss auction with them.

People are motivated for all sorts of reasons. They've found another property, they're relocating, they're a landlord who wants out, it's an inherited property, their circumstances have changed or sometimes they simply want it sold.

One of the things I really like is being able to use the guide price to create interest. You've still got the reserve there, which is agreed with the seller, but if you get a few people interested in the same property you've then got genuine competition.

I've seen some brilliant results from doing that.

The commitment from the buyer is another big one for me.

We all know what normal sales progression can be like. You agree a sale, everyone is happy, you take it off the market and then you can spend months getting it through. And until you exchange, there is always the possibility of somebody pulling out.

For a motivated seller, that can be the exact opposite of what they want.

Auction isn't right for everyone though and I wouldn't pretend it is. I still sell plenty of properties by private treaty and there are valuations I go to where auction wouldn't even be my recommendation.

It really depends on the seller, their circumstances and what they want to achieve. I think that's probably the biggest thing that's changed for me.

Years ago I saw auction as something you tried when the normal way hadn't worked. Now there are plenty of properties where I'll recommend auction from the start. I've gone from being pretty sceptical about it to it being a big part of my business.

That's really only happened because I've used it, seen the results myself and seen how well it can work for the right seller.

Full contact details and information about Georgina's work and Hambly Estates at their website hamblyestates.co.uk