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Auction in the 'toon?
MrBeeee
Posts: 7 Forumite
We are considering the auction route for our 2 bed semi in Newcastle after 6 months on the market and 3 sales fallen through.
Had the guy round from Pattinsons last week, they want £600 + VAT to list the property and "3 or 3.5%" of any selling price. The 3% figure seems a little eye watering, does anyone have any experience of auction fees.
Other than that he reckoned to set a reserve of £115k (the price agreed we'd sell for when the last sale fell through) and the guide price is then set at at £90k or so.
Had the guy round from Pattinsons last week, they want £600 + VAT to list the property and "3 or 3.5%" of any selling price. The 3% figure seems a little eye watering, does anyone have any experience of auction fees.
Other than that he reckoned to set a reserve of £115k (the price agreed we'd sell for when the last sale fell through) and the guide price is then set at at £90k or so.
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Comments
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3 % does seem to be the rate at auction .Does this include VAT
or is it 3% & VAT .
Can you haggle the price ?"Do not regret growing older, it's a privilege denied to many"0 -
If you search these forums you'll see a few threads about about houses not selling at auction because of unrealistic prices which is likely why they as asking for cash or a larger chunk of the sale price.
I cant judge your price as I wouldnt know the area but I would say the chances of getting the same price from an auction that you would from tradtional sale a few months ago is slim.
The very fact you need to complete in 28 days and have a 10% deposit in the current market means auction buyers are there looking for bargins, if your place was a bargin at 115k then likely you wouldnt be auctioning it off.
I dont mean to sound harsh but if you are not realistic about the price then you will just be wasing your money.0 -
Pattinsons would as they are a major local EA. It was the EA that suggested the reserve, not the seller. It would be unlike Pattinsons to suggest an unrealisticly high reserve as they wouldn't want to miss out on the £3k commission....I cant judge your price as I wouldnt know the area but ...
However, they also wouldn't want to upset a seller (their customer) by giving away a property at a ridiculously low price because of poor attendance at the auction that day, hence why they suggest a realistic auction reserve price."Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 20100 -
Do some research on auctions across the Country before you commit.
Couple I have attended in the last Month have been pretty disappointing from a sellers perspective.
Very few bids houses and those that are bid upon are not reaching reserve. There was an auction in Wales the other day with 79 properties up and 3 sold. People simply are not buying even at auction unless it is a real bargain.0 -
Pattinsons would as they are a major local EA. It was the EA that suggested the reserve, not the seller. It would be unlike Pattinsons to suggest an unrealisticly high reserve as they wouldn't want to miss out on the £3k commission.
However, they also wouldn't want to upset a seller (their customer) by giving away a property at a ridiculously low price because of poor attendance at the auction that day, hence why they suggest a realistic auction reserve price.
fair point except the 115k is the same price the op has been trying to sell the house at, I would wager the auction audience isnt going to be willing to pay the same price they could have bought the place for if they had gone on rightmove.0 -
It would be unlike Pattinsons to suggest an unrealisticly high reserve as they wouldn't want to miss out on the £3k commission.
Oh, I don't know, set a high reserve, get £600 with no sale or propose a realistic reserve (which the seller won't agree to) and get £0 and no sale. That £600 might be enough to keep the auctioneer's business ticking over.What goes around - comes around0 -
Auction results show 57 properties sold by Pattinsons at their 28 October auction, out of a total of 181 in their catalogue. So, I don't think it is entirely possible to rely on them to set a realistic reserve - or to insist that their customers do so. An auction where only one-third of the lots sell is a pretty dispiriting place to be.
results:
http://www.pattinsonauctions.co.uk/PropertyAuctions/AuctionResults.aspx?auction=131
Catalogue:
http://www.pattinsonauctions.co.uk/PropertyAuctions/Catalogues/131.pdf
Very oddly, there's only results shown for 168 properties. Why would thet withhold data for the rest?No reliance should be placed on the above! Absolutely none, do you hear?0 -
Oh, I don't know, set a high reserve, get £600 with no sale or propose a realistic reserve (which the seller won't agree to) and get £0 and no sale. That £600 might be enough to keep the auctioneer's business ticking over.
181 lots x £600 = £109k.
3% on value of total lots sold = £159k.
So, those £600 fees are an important part of their income.
Marginal cost of including an extra lot in the auction, even if it oes not sell = not much.No reliance should be placed on the above! Absolutely none, do you hear?0 -
181 lots x £600 = £109k.
3% on value of total lots sold = £159k.
So, those £600 fees are an important part of their income.
Marginal cost of including an extra lot in the auction, even if it oes not sell = not much.
Effect of becoming known as an auction house that doesn't sell or only at rock bottom prices? Catastrophic!"Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 20100
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