If you are the winning bidder of an auction using the modern method of auction, you the buyer enter into a contract, which generally has a 5% fee (this is on top of purchase price). You must also exchange the property within 28 days. When you do, you have another 28 days to complete the purchase. If a seller ends up purchasing, they also have to pay these fees.
If the sale does not go through, the reservation fee will be refunded to the purchaser.
Purchasing a home via the modern method of auction can be risky, as the purchaser risks losing their reservation if the buyers withdraw from the purchase.
At the Modern Auctions, the process is simplified. First, sellers start by uploading a list of items they want to sell through the Modern Auction app. They can set their own price or post an auction with a starting bid. Buyers can preview the listing and schedule an appointment to meet them in person or inspect their item before submitting a bid via their phone, tablet or desktop.