I’m about to list my only property to sell at auction and wondering which of the above to go for. Any advice either way?
Thanks
Either option will reduce the chances of selling but in my experience as a buyer, I was very put off by properties that were for sale by modern method of auction. These usually involve the prospective buyer stumping up fees and to be honest I can’t see many being willing to do that.
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Both the agent and the auctioneer were surprised when I mentioned that and they both think modern auction is better as they say it opens up the market to more potential buyers. I take your point totally tho! And am very undecided
They would say that wouldnt they as they make more money that way , off the buyer !! I never buy that way as their “fee” to the buyer is too high and that puts me off. Rip off merchants. EG You market at 100K buyer has to pay 6k UPfront. If buyer cannot buy ,no refund! Thinks I will offer 94k. With a regular agent you pay 2k so you get 98k. “more poential buyers”? rubbish What rhymes with buyers , liars !
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Thanks for responding. What do you mean by ‘Either option will reduce the chances of selling’ ?
Thanks again
I mean that if you sell through a conventional estate agent on the open market, you’re going to open up your property to the most buyers possible, at a normal price.
If you go for traditional auction, you’re limiting yourself to ‘investors’ mainly as they are the ones that attend auctions.
If you go for modern method of auction, you’re unlikely to get any offers at all in my opinion as almost nobody will pay the upfront fees.
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Oh yes of course. I am considering auction tho because the house hasn’t sold (went on the market early Nov), the tenant has now left, and it has a single skin extension which the one buyer I found was refused a mortgage on (her buyer then pulled out).can’t get a new tenant because the new rules coming in will tie me in to the house for too long.
If it is empty then i would stick with a normal sale unless it is a structural issue. It is difficult to fully understand from what info you have given if the mortgage co saw a structural issue or an EPC type issue. Either of which might have terrified a first time buyer.
The mortgage cos are becoming more EPC C demanding but there are more realistic mortgage options out there. D you know how much it would cost to fix the problem. Spring is a great time of year to sell and very competitive price and a fresh set of photos /garden spruce up / front door paint etc can work wonders. If you go to standard auction you will very likely receive less money. Modern auction is not going to make a mortgage co over look an issue or a buyer pay more. As with others it puts me off. Your agent should entice cash buyers to look at your property and you should be prepared for a last minute price sweetener. I’ve seen so many sellers lose a sale because they wouldn’t drop £500-£1000 to keep the sale on track when something unexpected ‘came up’. Get savy on how much it would cost to fix or insulate. If the EPC or surveyor says insulation will cost X that is the info the buyer most likely saw. Is it correct? If you market is First time buyers then they need comfort. You agent should be working for you and there is a buyer for everything if the price is right. Good luck.
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Thanks for taking the time to reply. The surveyor wanted an engineer’s report to be done, in case of damp in the single skin extension, so the buyer paid for one which apparently didn’t show up any problems. They were also asked to get a damp and timber report, but then the buyer’s buyer dropped out. I could get this damp and timber report done myself (£40) in the meantime.
Any reports are a plus. A mortgage offer would depend on how much deposit is put down. EG Found a house for my daughter, single storey extension had big crack in it ( will pull down and rebuild ).Dad gave 1/3rd of price as deposit , she got a mortgage offer no probs. Everything will sell at the right price and buyer
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I tried to sell one property through an auction, atleast made an enquiry. They said, they would have a reserve price of £65k and £10k as their fees, as a lot of work is involved their end. They also explained the land registry will show the price sold for £75k as it icludes their fees. I had alarm bells ringing as this did not seem right. They were very good to repeat that it will never be lower than £65k, as they clearly made out that they were doing me a favour. I sold it for £82k with a local High Street estate agency with a £1.5k fees from me. I got more than £80k after fees. As already stated that the auctioneers are greedy scumbags. Be aware of them. Also be careful of their contracts. Their contracts may also make out that the property is theirs to collect rent but do not pay any cash to the seller, stating in the contract that the payment will be made when a purchaser is found until then they will continue to have legal interest in the property and continue ot collect rent. On the phone they had said they will complete the purchase in 28 days.
We had alarm bells ringing when the auctioneer did not send a contract but stated we sign the online form to sell on a rolling contract basis and agree to their terms of the contract. We asked for the contract terms that they were refering to and send them to our solicitors, who promptly told us not to sign anything as it was very heavily in their favour - it stated that they will have the legal interest in the property until completion. I had already told them in writing that they need to lodge 10% deposit into an escrow account and completion in 28 days and rollover only allowed once and they cannot have any interest in the property until the completion of their purchase. So they came back and said they just wanted us to be part of their group until they sold the property to someone else. I reminded them that is what they said over the phone. They had said normally we would not offer to complete in 28 days as they would wait for the sale to the 3rd party and complete but as they can see good potential, they will buy it and then sell on. so the terms of the contract counts more than what they say over the phone. This is what they learn on the property courses they go to.
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A good example of what I said . Rip off merchants