Odd feedback from estate agent - what does it mean?

Snowyowl111

Hi, I'm selling my house by modern method of auction and today I got written feedback that one viewer had discussed 'potential to caveat for down value if necessary.' What on earth does that mean? It was email feedback, have emailed them back but it was gone 5 when I emailed. Anyone got a clue?

kingstreet

Yes. It means don't expect them to pay what was agreed if their professionally qualified surveyor says your gaffe ain't worth what your estate agent told you it was.

"Modern method of auction."

Hmm.

davidmcn

"Downvalue" in the sense of a surveyor thinking it isn't worth whatever price is agreed in principle, and your buyer then seeking to renegotiate (on the basis that they can't borrow as much as hoped, because lenders will base their sums on the lower of the price and their valuation).

EmmyLou30

I suppose that could relate to their offer price being on the basis that the mortgage company valued it the same as they did. If the mortgage valuation comes back £10k less then they reserve the right to lower their offer accordingly. Hopefully they'll get back to you with an explanation though.

Snowyowl111

kingstreet wrote: »

"Modern method of auction."

Hmm.

Why hmm? I know nothing about it, I wanted to just sell it at basic auction (part of a long, drawn out divorce that's annoying me) but modern method seemed to be all that was available. Is there something I should know?

kingstreet

Who is getting the non-refundable "reservation" fee?

kingstreet

Another thread on here;-

https://forums.moneysavingexpert.com/discussion/comment/73053182#Comment_73053182

lessonlearned

Snowyowl111 wrote: »

Why hmm? I know nothing about it, I wanted to just sell it at basic auction (part of a long, drawn out divorce that's annoying me) but modern method seemed to be all that was available. Is there something I should know?

I would not even consider going to view a house that was being sold under the modern auction let alone trying to buy it. A complete waste of time.

As for attempting to sell selling one using that method.....absolutely not. I'm sorry but I think you are shooting your self in the foot.

If you can change and switch back to the more usual EA methods then I would advise you to do that. I can't speak for the whole of the uk but round my neck of the woods any property trying to go the modern auction way languishes for months and then is usually taken off the market. It just doesn't seem to work.

Why can't you put it up for a traditional auction.

SG27

Just had to look this up as never heard of it. I think this would put a lot of buyers off.

On £300k the buyer will have to pay £9000 fee whether they go through with the sale or not. So if something pops on the survey/enquiries and the buyer wants to pull out they lose £9000!?

Plus you have to exchange in 28 days, what if the seller fails to answer enquiries in time? What if you have a house to sell and your buyers dont agree to exchange so soon? What happens if exchange cant take place?

I think this would massively limit the number of potential buyers.

SG27

If its part of a lo g drawn out divorce are you sure you can exchange in 28 days?

eddddy

Snowyowl111 wrote: »

Hi, I'm selling my house by modern method of auction and today I got written feedback that one viewer had discussed 'potential to caveat for down value if necessary.' What on earth does that mean? It was email feedback, have emailed them back but it was gone 5 when I emailed. Anyone got a clue?

It may be kind-of irrelevant.

Using the modern method of auction, the 'winner' gets to pay £6k+ (to the auctioneer) to reserve the property for 28 days.

The 'winner' is not contractually bound to buy at the price they bid (or at any price). They can reduce their bid/offer or walk away, if they want.

If they they try to reduce their bid/offer - you can refuse to accept the reduction and walk away.