Auction house, not sold, what next?

stevie_wonder

Hi,
I'm selling my house and had found one I was interested in but it was up for auction. Being a bit cautious I didnt attend the auction, and have found out that the house didnt sell. Can anyone advise what would happen now if I wanted to buy that house? I spoke to the company and they said I would need to speak to the auctioneer and that a sale could go through after the auction but it would need to be under auction conditions. I wasnt sure what they mean by that. Has anyone got any experience of this sort of thing and how it might be worked out?
Cheers

Drea

What happens is the auction company can take offers and put them to the client. You can ask what the reserve price was (which is the price they are really looking to sell for) and can make an offer accordingly.

It would still be on auction terms, which means that you would have to pay a deposit straight away (ask the company for their percentage) and then you would have a set time to complete the sale in, there is no backing out.

AMILLIONDOLLARS

Important question is why didn't it sell. Have you looked at the information pack? There could be something in there that has put other buyers off. Have you viewed the property internally. Before putting in an offer I would suggest that you investigate the property thoroughly as it could be a dud!!

AMD

Booradley_2

Also auction conditions will probably include 'lot money' which is the autioneers percentage.

Boo

Drea

Booradley wrote: »

Also auction conditions will probably include 'lot money' which is the autioneers percentage.

Boo

Most auction companies take the expenses/fee from the seller, not the buyer.

stevie_wonder

Drea wrote: »

What happens is the auction company can take offers and put them to the client. You can ask what the reserve price was (which is the price they are really looking to sell for) and can make an offer accordingly.

It would still be on auction terms, which means that you would have to pay a deposit straight away (ask the company for their percentage) and then you would have a set time to complete the sale in, there is no backing out.

Would I have to have a survey done before agreeing the price? or could I make an offer, have a survey and then confirm/negotiate price after?

The house currently has tenants and I want it for my family, so the owner would have to give notice?

stevie_wonder

AMILLIONDOLLARS wrote: »

Important question is why didn't it sell. Have you looked at the information pack? There could be something in there that has put other buyers off. Have you viewed the property internally. Before putting in an offer I would suggest that you investigate the property thoroughly as it could be a dud!!

AMD

I was wondering exactly the same - why it hadnt sold?
I've been round the house and also seen the details on the web but not sure about an information pack. Is that different from what they might put on rightmove? if so, I need to ask and see that too. Its currently set up as bedsits, and I want it as a family home, so I wonder if that's what is putting people off. As a bedsit, not all of the rooms are let so I think that may put off potential landlords?

stevie_wonder

Drea wrote: »

Most auction companies take the expenses/fee from the seller, not the buyer.

Drea - in your experience, do sellers try to incorporate the selling fee into the sale price (to make their money back?). How much is it generally? This property is in the Mids, if that helps.

Drea

stevie_wonder wrote: »

Would I have to have a survey done before agreeing the price? or could I make an offer, have a survey and then confirm/negotiate price after?

The house currently has tenants and I want it for my family, so the owner would have to give notice?

You would have to have a survey done before agreeing anything in concrete. If it is being sold as an investment then the giving notice will probably be left to you.

AMILLIONDOLLARS

You need to have a survey done first as you are buying under auction condititions, once they have agreed your price, its yours tenants and all. It could be because of the sitting tenants why it did not sell, have a look at the auction pack first, have a survey done, then make your offer.

Legal pack will have any legal restrictions associated with property things you can and can't do a owner, plus any relevant information associated with the property.

AMD

Drea

stevie_wonder wrote: »

I was wondering exactly the same - why it hadnt sold?
I've been round the house and also seen the details on the web but not sure about an information pack. Is that different from what they might put on rightmove? if so, I need to ask and see that too. Its currently set up as bedsits, and I want it as a family home, so I wonder if that's what is putting people off. As a bedsit, not all of the rooms are let so I think that may put off potential landlords?

A lot of the residential isn't selling at the moment simply because people can't get the mortgages. It doesn't necesseraly mean that there is anything wrong with the property and the auctioneer has to give out the information if s/he knows about it.

You should request a look at the title pack.

stevie_wonder wrote: »

Drea - in your experience, do sellers try to incorporate the selling fee into the sale price (to make their money back?). How much is it generally? This property is in the Mids, if that helps.

No, the sellers pay a percentage straight to the auctioneer (around 1.5%), this shouldn't be passed onto the buyer at all unless it is stated in the special conditions of sale (something else you need to ask for from the auctioneers) but it's rare.