Property auctions

pitbull

Hello all, has anyone any experience of selling a house by auction?

I know they set a reserve and some agencies are now offering so called no sale no fee deals but is this correct or marketing bull. I know I do need to contact the agents and see.

My situation is my house has now been on the market over a year, I have sold 3 times and for various reasons it has fallen through each time. I am now experiencing the merry go round of viewers not turning up or people making offers 20 to 30k below asking price!!

It is not unreasonably priced, in fact it is 12k under the Zoopla mid estimate which comparing with others sold in the street appears to be accurate. I am currently on with 2 estate agents in a dual deal (only the selling agent gets the dosh) one of which also does auctions and offers a no sell no fee deal.

Would welcome views from anyone with experience, I will also be contacting the estate agent to discuss.

G_M

Your propety is over-priced. You won't get a better price at auction.


Zoopla prices are not to be believed.

[Deleted User]

If multiple people are offering 30k below asking then yiur asking price is 30k over its current value

I always tell my clients that the only person able to value a property is the one willing to put money on the table.

If other properties sold for the price you want then it sounds like your market is in a slump and only a price reduction or waiting it out can fix that.

eddddy

pitbull wrote: »

...some agencies are now offering so called no sale no fee deals but is this correct or marketing bull.

That sounds like it might be the "modern method of auction" operated by the EA in conjunction with "iamsold". (What's the name of the EA offerring this option?)

If it is, the downside is that the buyer has to pay a non-refundable reservation fee of 4.2% of the purchase price (minimum £6k).

So people are likely to offer less to account for the 4.2%/£6k fee - plus the risk of losing their reservation fee if there's a problem with the property and they pull out.


(And suggesting an auction is often a ploy to get you to lower your asking price.)

3card

About 2 years ago we were looking to purchase another BTL and there was a 3 bed house that was ideal but on the cheap side so when i enquired i was told that there a mineshaft in the rear garden so it was unmortgagable.

Over the next 12 months the house was reduced each month until it was £20K under the original £90K price.

The owner decided towards the end of 2018 to put into an auction and it was sold for £82K so sometimes the auction works for sellers
I think the guide price was £50K if i recall correctly

pitbull

G_M wrote: »

Your propety is over-priced. You won't get a better price at auction.


Zoopla prices are not to be believed.

Actually Zoopla is pretty accurate and properties around have sold for prices within the Zoopla estimate

pitbull

Deleted_User wrote: »

If multiple people are offering 30k below asking then yiur asking price is 30k over its current value

I always tell my clients that the only person able to value a property is the one willing to put money on the table.

If other properties sold for the price you want then it sounds like your market is in a slump and only a price reduction or waiting it out can fix that.

Not multiple buyers, a couple of chancers.

Not over priced just in a difficult price bracket that precludes first time buyers, have also had competition with deaths and divorces in our street meaning at one point 5 properties for sale all together in a street of 30 properties. Each house is unique but those on my side have more land and therefore command a higher price.

Yes there is a slump in the market in these parts hence Looking at options, it is worth what people are prepared to pay that is why it sold in the past

pitbull

eddddy wrote: »

That sounds like it might be the "modern method of auction" operated by the EA in conjunction with "iamsold". (What's the name of the EA offerring this option?)

If it is, the downside is that the buyer has to pay a non-refundable reservation fee of 4.2% of the purchase price (minimum £6k).

So people are likely to offer less to account for the 4.2%/£6k fee - plus the risk of losing their reservation fee if there's a problem with the property and they pull out.


(And suggesting an auction is often a ploy to get you to lower your asking price.)

Yes I looked at the iamsold website and thought it was all geared around using them, the estate agent is Barbers, they havent suggested auction, it is me looking at options.

I could in all honesty sit it out.

AdrianC

pitbull wrote: »

Actually Zoopla is pretty accurate and properties around have sold for prices within the Zoopla estimate

Let's have a look at the RM link, then.

markin

Why did all 3 fall? Just UN-lucky chains, or the valuation and bank said no.

00ec25

pitbull wrote: »

Not over priced just in a difficult price bracket that precludes first time buyers, have also had competition with deaths and divorces in our street meaning at one point 5 properties for sale all together in a street of 30 properties. Each house is unique but those on my side have more land and therefore command a higher price.

you can stick your fingers in your ears and go la la la I'm not listening as much as you like, but the fact remains your property is not selling.
An auction will establish exactly what someone is prepared to pay for it. That figure may not be to your liking, but it will be too late then as you'll have sold it.

selling property is all about desperation, you clearly are not yet desperate enough to actually want to sell