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House Purchase by "Modern Auction"
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Mr_Black
Posts: 30 Forumite
I'm interested in a house that is advertised for sale by modern auction. I have seen some old discussions on this site but would like further advice.
Here is the detail on the site:
Now, the crux of this method of sale is the buyer must stump up a non refundable fee of 5% sale price OR at least £5000 + VAT!! This is separate to the price of the house, is added on and goes direct to the auctioneer not the seller. It's pretty much a bit of a swizz really.
I just called the Estate Agent and asked whether I can make an offer by "private treaty" before it goes to auction i.e. sell the property, one party to another without the help of an auction. They said yes, however, I would still have to pay the reservation fee of £5k.
Is this correct? Anyone with experience
Here is the detail on the site:
This property is for sale by the modern auction method of sale also known as an "conditional auction". This process is similar to a normal property purchase but on acceptance of an offer the purchaser will pay a non refundable reservation fee to secure the property. The buyer then has 28 days to exchange contracts and a further 28 days to complete the purchase. Terms and conditions apply to the modern auction method of sale.
So it is yet to go to auction and is currently advertised to build interest.
Now, the crux of this method of sale is the buyer must stump up a non refundable fee of 5% sale price OR at least £5000 + VAT!! This is separate to the price of the house, is added on and goes direct to the auctioneer not the seller. It's pretty much a bit of a swizz really.
I just called the Estate Agent and asked whether I can make an offer by "private treaty" before it goes to auction i.e. sell the property, one party to another without the help of an auction. They said yes, however, I would still have to pay the reservation fee of £5k.
Is this correct? Anyone with experience
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Comments
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I've seen this discussed here. Personally, I just wouldn't be interested.
If you go to the Land registry, you can find the owner's name, and make him an offer. His arrangement with the auction house is nothing to do with you, and you wouldn't have to pay them anything. However, the seller might, and he might take that into account.No reliance should be placed on the above! Absolutely none, do you hear?0 -
There are other threads discussing this, you might want to do a Forum Search.0
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I've seen this discussed here. Personally, I just wouldn't be interested.
If you go to the Land registry, you can find the owner's name, and make him an offer. His arrangement with the auction house is nothing to do with you, and you wouldn't have to pay them anything. However, the seller might, and he might take that into account.
I didn't think of this, I will give it a try thank you.There are other threads discussing this, you might want to do a Forum Search.
I did, and it didn't answer my Question. Thanks for the advice though :beer:0
This discussion has been closed.
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