'Modern auction method'

mistrihelen

What sort of patter do the estate agents use to make sellers believe this is a viable choice? I'm amazed anyone would fall for it. We've just lost a house where the impatient vendor is now doing an auction via Yopa/GOTO - we are simply not prepared to risk that amount of money. As far as I can see no one gains except dodgy EAs who care more about the bottom line than their customers.

BBH

I am a seller and I would use, especially now with Stamp Duty ending.  Not only that I am wanting to SHARE the reservation fee with the buyer to show equal commitment and share of the transaction.  Not sure if I am going to be offered the opportunity to do it however, I want it sold and a buyer wants the property - and this is the only method I can see that allows us to do this quickly without the usual market nonsense of waiting for months on end to complete this process which is already a painful experience.

davidmcn

BBH said:

I am a seller and I would use, especially now with Stamp Duty ending.  Not only that I am wanting to SHARE the reservation fee with the buyer to show equal commitment and share of the transaction.  Not sure if I am going to be offered the opportunity to do it however, I want it sold and a buyer wants the property - and this is the only method I can see that allows us to do this quickly without the usual market nonsense of waiting for months on end to complete this process which is already a painful experience.

What makes you think that it makes the process any faster? All it really does is make the buyer hand over a pre-contract deposit.

NameUnavailable

BBH said:

I am a seller and I would use, especially now with Stamp Duty ending.  Not only that I am wanting to SHARE the reservation fee with the buyer to show equal commitment and share of the transaction.  Not sure if I am going to be offered the opportunity to do it however, I want it sold and a buyer wants the property - and this is the only method I can see that allows us to do this quickly without the usual market nonsense of waiting for months on end to complete this process which is already a painful experience.

If you want to sell quickly why not just use a traditional auction? Modern method doesn't seem to offer any real advantage and puts most buyers off due to the requirement to pay the up front fees required.

If you do use it please come back and tell us about the experience because I've yet to hear from anyone who has sold this way.

hazyjo

BBH said:

I am a seller and I would use, especially now with Stamp Duty ending.  Not only that I am wanting to SHARE the reservation fee with the buyer to show equal commitment and share of the transaction.  Not sure if I am going to be offered the opportunity to do it however, I want it sold and a buyer wants the property - and this is the only method I can see that allows us to do this quickly without the usual market nonsense of waiting for months on end to complete this process which is already a painful experience.

Great. Although you'll probably eliminate around 90% of buyers. So good luck with that! People find it hard enough to sell at the best of times!

NaughtiusMaximus

mistrihelen said:

What sort of patter do the estate agents use to make sellers believe this is a viable choice? I'm amazed anyone would fall for it. We've just lost a house where the impatient vendor is now doing an auction via Yopa/GOTO - we are simply not prepared to risk that amount of money. As far as I can see no one gains except dodgy EAs who care more about the bottom line than their customers.

When we were getting quotes from EAs on our old property nearly 4 years ago, one of them was pushing this option, I don't remember ALL the BS she spouted but lower fees and a faster sale were definitely two of them. 

We had already researched this beforehand though and had decided not to touch with a barge pole, the fact she attempted to change our minds after we said we weren't interested was the major reason we didn't choose them to sell our property. We actually accepted an offer on the property within a week of listing with no issues of note in the entire selling process so it would have been a nice easy bit of commission for her if she hadn't have been so pushy.

spiritus

davidmcn said:

BBH said:

I am a seller and I would use, especially now with Stamp Duty ending.  Not only that I am wanting to SHARE the reservation fee with the buyer to show equal commitment and share of the transaction.  Not sure if I am going to be offered the opportunity to do it however, I want it sold and a buyer wants the property - and this is the only method I can see that allows us to do this quickly without the usual market nonsense of waiting for months on end to complete this process which is already a painful experience.

What makes you think that it makes the process any faster? All it really does is make the buyer hand over a pre-contract deposit.

It's not a deposit though.
It is a non-refundable fee that the buyer has to pay for the "privilege" of buying a property with this method.
If it was a deposit then I wouldn't mind as the deposit amount would come off the total price of the property.

greatcrested

As a buyer, I wouldn't even bother to go and view if this was the sale method proposed, so if you are happy to lose a large proportion of your potential buyers - go ahead......

Crashy_Time

hazyjo said:

BBH said:

I am a seller and I would use, especially now with Stamp Duty ending.  Not only that I am wanting to SHARE the reservation fee with the buyer to show equal commitment and share of the transaction.  Not sure if I am going to be offered the opportunity to do it however, I want it sold and a buyer wants the property - and this is the only method I can see that allows us to do this quickly without the usual market nonsense of waiting for months on end to complete this process which is already a painful experience.

Great. Although you'll probably eliminate around 90% of buyers. So good luck with that! People find it hard enough to sell at the best of times!

Yes, people that overprice their properties do. Of course all bets are off in the middle of a pandemic if SD comes back on.

Suseka97

greatcrested said:

As a buyer, I wouldn't even bother to go and view if this was the sale method proposed, so if you are happy to lose a large proportion of your potential buyers - go ahead......

Yep, am with you on this.  When I was looking at properties last year I saw some good ones, but as soon as I read they were being sold under this new auction method I just scrolled on by.  Otherwise I would have gone and looked and likely offered.   I just don't get why anyone would pay the upfront fee unless the house was already discounted in some way - but that's not what I was seeing at the time.