Our Orchard deal was a great property. But we learned a lot buying it through modern method of auction — including the fees that catch most people off guard.
What Is Modern Method of Auction?
Unlike traditional auctions, modern auctions give you 28–56 days to complete and allow mortgage buyers to participate. But there’s a catch: reservation fees.
We paid £6,300 just to secure the deal — a cost that doesn’t go toward the purchase price. Add that to legal fees and you’re looking at £10K+ in upfront costs, even before the refurb begins.
What We’d Do Differently
- Factor the fees early. Some deals stop making sense once you account for auction charges.
- Always read the legal pack. Don’t assume the auctioneer has done the checks for you.
- Be prepared to move fast. Even though you have longer than traditional auctions, speed still matters.
Should You Buy This Way?
It depends. For the right deal, with the right margin, it can work. But it’s not ideal for beginner investors unless they’ve got solid support or are working with a property investment company like ours.
For a full breakdown of the deal, costs, and timeline, check out Episode 2 of the Property Perspectives Podcast.
– Jordan & Alex
