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The conditional auction modern rip off
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the_root_of_all_evil
Posts: 172 Forumite
in my area a company called iamsold.co.uk operate this modern method of auction.
these seem to be cropping up everywhere around the country and im not surprised given the fees involved. I have now attended 5 of these auctions and have also had the privilege being coersed into selling one of my properties in said auction.
i have a huge gripe with this new auction/scam in that the the fees involed are 5% of the selling price paid at the fall of the hammer. In my area 90% of the properties are sold on the day for under 80k which means the fee is £5000+ vat (6000!!!!!) because there is a clause of minimum of £5000 (6000) or 5% depending on the property sold price, that said the buyers fee is almost always £6000.
homes that are sold in the usual way ie not in an auction are usually subject to an estate agent fee of 1-1.5% in my area which means the seller ends up paying around £1500 to the agent in my experience.
In the auction room:
once the hammer has fallen and you are the successful bidder you are quickly escorted from the auction room and asked for your credit card were the buyers premium is taken there and then (£6000).
after this you have 28 days to sort the completion of sale which believe me is not a lot of time in the housing game, if there are any delays due to you or unforeseen circumstances then you will be fined by the auctioneers further and maybe the house will go back into the auction for another punter to pay the buyers fee again £6000!!!
In the old style traditional auctions the buyers premium is usually something like a one off cost of £600 or 1% of the selling price which is much more palatable/sensible.
tryed to real me in:
last year i was in the unfortunate position of being stuck with a property that i had bought and renovated for sale, as the market dropped interest dried up and i had to begin lowering my asking price and as i did the phone began to ring, it was the conditional auction nutters with there spiel about how my property was over priced and that i must enter it into the conditional auction or fear losing thousands.
initially the property was was valued at 65k by an estate agent, i eventually dropped it down incrementally to 54k as it didnt look like it was going to sell. the auction nutters wanted me to put the house in there auction with a resevere of 35k.
from my experience of these auctions and a good knoledge of the local market i knew it would sell at auction for around 40k, with the lucky/unlucky buyer getting my house for 40k + 6k auction fee.
YES THATS A £6000 FEE ON A 40K PROPERTY !!!!!!!!!!
luckily i wasn't that desperate i hung out for a sale which i did achieve at near asking.
these fools are preying on the vulnerable seller who may not be able to wait, or seem to be selling to the "homes under the hammer crew or HUTH " influenced by a tv program with its magic wand flash that takes homes from rags to riches in a nano second, when was the last time you saw anyone lose on homes under the hammer?? in this market??? really???.
during the last conditional auction that i had the misfortune to attend 86 properties out of a hundred were sold, i make that £516000 minus vat made on the night by conditional auction con men, not bad for 2hrs work eh?
these low valued homes should be going to the first time buyer not buy to let or the HUTH crew.:mad:
my advice is stay away and put your £6000 fee on top of your budget and look for a better property were you'll have more than 28 days to complete, wont have to pay a ludicrous fee, and you wont have to sit in a room with a load of lovey doveys quafing champagne or the pensioner with money to burn suffering from HUTH crew syndrome who doesn't know any better looking for a better return on his savings. (cant blame the pensioner with interest rates and all but thats a whole other story)
end this madness by not attending these traveling shows.
what say you?
these seem to be cropping up everywhere around the country and im not surprised given the fees involved. I have now attended 5 of these auctions and have also had the privilege being coersed into selling one of my properties in said auction.
i have a huge gripe with this new auction/scam in that the the fees involed are 5% of the selling price paid at the fall of the hammer. In my area 90% of the properties are sold on the day for under 80k which means the fee is £5000+ vat (6000!!!!!) because there is a clause of minimum of £5000 (6000) or 5% depending on the property sold price, that said the buyers fee is almost always £6000.
homes that are sold in the usual way ie not in an auction are usually subject to an estate agent fee of 1-1.5% in my area which means the seller ends up paying around £1500 to the agent in my experience.
In the auction room:
once the hammer has fallen and you are the successful bidder you are quickly escorted from the auction room and asked for your credit card were the buyers premium is taken there and then (£6000).
after this you have 28 days to sort the completion of sale which believe me is not a lot of time in the housing game, if there are any delays due to you or unforeseen circumstances then you will be fined by the auctioneers further and maybe the house will go back into the auction for another punter to pay the buyers fee again £6000!!!
In the old style traditional auctions the buyers premium is usually something like a one off cost of £600 or 1% of the selling price which is much more palatable/sensible.
tryed to real me in:
last year i was in the unfortunate position of being stuck with a property that i had bought and renovated for sale, as the market dropped interest dried up and i had to begin lowering my asking price and as i did the phone began to ring, it was the conditional auction nutters with there spiel about how my property was over priced and that i must enter it into the conditional auction or fear losing thousands.
initially the property was was valued at 65k by an estate agent, i eventually dropped it down incrementally to 54k as it didnt look like it was going to sell. the auction nutters wanted me to put the house in there auction with a resevere of 35k.
from my experience of these auctions and a good knoledge of the local market i knew it would sell at auction for around 40k, with the lucky/unlucky buyer getting my house for 40k + 6k auction fee.
YES THATS A £6000 FEE ON A 40K PROPERTY !!!!!!!!!!
luckily i wasn't that desperate i hung out for a sale which i did achieve at near asking.
these fools are preying on the vulnerable seller who may not be able to wait, or seem to be selling to the "homes under the hammer crew or HUTH " influenced by a tv program with its magic wand flash that takes homes from rags to riches in a nano second, when was the last time you saw anyone lose on homes under the hammer?? in this market??? really???.
during the last conditional auction that i had the misfortune to attend 86 properties out of a hundred were sold, i make that £516000 minus vat made on the night by conditional auction con men, not bad for 2hrs work eh?
these low valued homes should be going to the first time buyer not buy to let or the HUTH crew.:mad:
my advice is stay away and put your £6000 fee on top of your budget and look for a better property were you'll have more than 28 days to complete, wont have to pay a ludicrous fee, and you wont have to sit in a room with a load of lovey doveys quafing champagne or the pensioner with money to burn suffering from HUTH crew syndrome who doesn't know any better looking for a better return on his savings. (cant blame the pensioner with interest rates and all but thats a whole other story)
end this madness by not attending these traveling shows.
what say you?
0
Comments
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^^^^^^I ain't reading all that!^^^^^^
There is no such thing as "coerced", contracts are entered into willingly. There is no-one holding a gun to anyone's heads.
The folly is that numpties sign contracts without reading and understanding them. No-one else is to blame for that except the numpties themselves. What you have described is precisely the way auctions take place and always have. I've never bought or sold a proeprty in my life and even I know that.
Don't think this organisation are offering a fair deal? Well don't ruddy-well deal with them. Estate-agents aren't exactly thin on the ground at the moment and few are completely rushed off their feet. Some are DESPERATE to get motivated and realistic vendors on their books. For a lot less than 5% in commission. Selling or buying at auction is not for everyone, most especially numpties.0 -
the_root_of_all_evil wrote: »These low valued homes should be going to the first time buyer not buy to let or the HUTH crew.:mad:
What say you?
I've read your rant now and I say that the only nutter is probably you.
SHOULD be going to FTBs? Total twaddle. Anyone who has the funds or can raise them SHOULD be able to buy whichever property they want and can afford from a vendor who is prepared to accept their price.0 -
Most auctions look for completion within 28 days.
It doesn't matter which "category" the highest bidder is in, he/she has bid the most money and therefore acquires that property.If you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales0 -
I'm sorry but I've read the post four times now and I cannot see where the problem is. Auctions have always had higher fees than estate agents. They've always required a buyers deposit. Hell, at the IT auction I go to you have to put down a £40 deposit just to get a bidder number!
28 days to complete is the standard for property auctions no matter who is doing them and where they are in the country.
Nobody is being preyed on. The terms are clearly there for all to read.
You sound like the kind of person who should never ever go to an auction for anything, let alone a house. I agree with the other poster that you seem to be some kind of nutter.0 -
As a recognised nutter myself, I wish to dis-assosiate myself from the OP.
Thank You
P.s We prefer to be called fruit-loops to nutters!:p0 -
the_root_of_all_evil wrote: »the point is as you missed it, is :
And the point you have missed is that no one is forced to go to these auctions and if people are daft enough to give £6000 away that is due to their own stupidity.0 -
Subscribes to thread. This should be fun.Been away for a while.0
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Cheaper to sell on Ebay. Even the home of fraudsters has a set fee for property.Never Knowingly Understood.
Member #1 of £1,000 challenge - £13.74/ £1000 (that's 1.374%)
3-6 month EF £0/£3600 (that's 0 days worth)0 -
whilst the OP is clearly a fruit loop the conditional auction offered by iam-sold.co.uk appears to be trying to take advantage of desperate people and those of low intelligence
I would be happy for it to be stopped if trading standards thought it was a rip off - it seems to me its skirting on the edge of legality and I wouldn't touch it with a barge pole0
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