Modern method of auction

samibwfc_2

I am very interested in a house that is currently being sold via the modern method of auction. The fees would come up to almost £10000 on top of the cost of the house which is something that I am not financially able to potentially lose if the mortgage doesn’t get sorted out within the timescale also I’d rather not pay out that sort of money. My question is can I contact the vendor privately to negotiate a sale if the house doesn’t sell by auction? The house has been up on auction 3 times and I am the only interested party. If I contact his solicitor (details in the buyer pack on website) whilst the auction is still on am I breaking any laws?

getmore4less

Forget it over priced.

ThePants999

You wouldn't break any laws by contacting the solicitor, but you wouldn't get the house without paying the fees, cos the vendor will have agreed to a clause saying that they owe the fee if they sell via a different method, and they'll pass that onto you by hiking the price.

samibwfc_2

Thanks for the reply. I do think the house is a little overpriced but I’m not looking at making a profit. I’d happily pay the asking price just not at auction with fees on top.

samibwfc_2

ThePants999 wrote: »

You wouldn't break any laws by contacting the solicitor, but you wouldn't get the house without paying the fees, cos the vendor will have agreed to a clause saying that they owe the fee if they sell via a different method, and they'll pass that onto you by hiking the price.

Thanks for replying, I need to find out what the clause is. There’s nothing on the iamsold website to suggest what happens if the house doesn’t sell. So frustrating.

ThePants999

samibwfc wrote: »

Thanks for replying, I need to find out what the clause is.

You can't, it's in a private contract you're not party to. However, go ahead and contact the vendor, and you'll find out the terms on which they'll sell you the house, accounting for their own commitments.

D_M_E

https://forums.moneysavingexpert.com/discussion/comment/76183249#Comment_76183249

Post #61 is a good read.

eddddy

samibwfc wrote: »

My question is can I contact the vendor privately to negotiate a sale if the house doesn’t sell by auction?

Essentially, you can make an offer outside the auction to the seller, and say that you won't pay the reservation fee.

In that case, the contract that the seller signed with IAMSOLD says that the seller will have to pay the £10k fee.

So it's up to the seller whether they'll accept your offer on that basis.

samibwfc wrote: »

If I contact his solicitor (details in the buyer pack on website) whilst the auction is still on am I breaking any laws?

Assuming you're in England/Wales, you shouldn't contact the seller's solicitor. You should contact the seller directly, or make your offer via the EA/Auctioneer.

The law requires that the EA/Auctioneer passes on any offers to the seller.

getmore4less

samibwfc wrote: »

Thanks for the reply. I do think the house is a little overpriced but I’m not looking at making a profit. I’d happily pay the asking price just not at auction with fees on top.

£10k+ overpriced.

kinger101

When I was selling my late father's house, an estate agent asked me if I had considered "the modern method of auction". He was shown the door very quickly.

hazyjo

I know of someone (through my sis) using it at the mo. Literally not one person has been through the door. Such a despised method of selling. I'd not even bother viewing. She's now attempting a second auction.


Have you actually viewed it? If yes and you want to buy, I would say to the EA you're willing to offer but not through the modern auction method.


My guess is the seller is skint (like the person I know using it) or desperate. If you contact them privately if it's withdrawn, they will have fees to pay to the EA still. (I really want to say 'probably' there but it's probably more a case of 'definitely'. Especially with these modern auction methods which often seem to have even more tie-in clauses than most.)