Selling via auction

Beenie

A relative has died and left a lovely bungalow, on a large plot. The interior is smart and a purchaser could move in immediately.

To our surprise, the agent has suggested using 'the modern method' (according to him) of selling via a property auction.

Does anyone have knowledge or advice to offer? Anything we should be wary of?

Mutton_Geoff

Beenie wrote: »

A relative has died and left a lovely bungalow, on a large plot. The interior is smart and a purchaser could move in immediately.

To our surprise, the agent has suggested using 'the modern method' (according to him) of selling via a property auction.

Does anyone have knowledge or advice to offer? Anything we should be wary of?

Plenty to be wary of. Search this forum for "modern method".


Also using terms like "lovely", "smart" and "a purchaser could move in immediately" sounds like you're selling it to yourself and therefore becoming emotionally attached to the transaction. Don't. Are you the executor?

jimbo2108

Auction costs and also the reduction in value of what people are willing to pay. It all depends if you want a fast sale, or are prepared to wait a couple of months?

Beenie

There are three executors involved and all need to agree. I don't think there's any rush as probate hasn't even been applied for yet, and that can take 1-2 months at least.

I will look out for 'modern method' and see what are the pitfalls.

Edit: No Matches Found

hazyjo

Most on here wouldn't touch modern method of auction with a bargepole - me included. Fees are paid by the buyer up front, and lost if they pull out (rough simplified explanation).

hazyjo

Beenie wrote: »

I will look out for 'modern method' and see what are the pitfalls.

Edit: No Matches Found

I searched the board. These all came up - bear in mind not all will be relevant and may have just used those words somewhere. Prob easy to work out which you need from the titles.


https://forums.moneysavingexpert.com/search.php?searchid=194358103

G_M

It will put many buyers off.


If probate has not ben applied for, there is no hurry, so just market it in the usual way. It's clearly a property that will attract interest.


Make sure buyers are made aware the sale is dependant on probate.

Retired_Mortgage_Adviser

If the vendors want to maximise sale price, then MMA is probably not a good option.

MMA (or any auction process) does have its uses in certain situations. As a buyer, I have used it a couple of times to buy rental properties BMV, but you need to know what you are doing and be confident about financing the purchase within the fixed period post auction.

As a seller, I have used it in a red-hot property market (docklands in 2012-13) and achieved a good price and quick sale without any vendor fee. But that wouldn't work in a slow market with few buyers competing for the purchase.

But based on what you have described, I don't see an evident reason for the vendors going down that route in this case.

tom9980

I wouldn't use an agent that even suggests it to me, straight out the door they go.

Davesnave

MMA is typically used in my area on hard to shift property.The last one I remember was a concrete panel bungalow.

When I see it I automatically think, "What's wrong with this one?"

Irishsmurfy

Beenie wrote: »

There are three executors involved and all need to agree. I don't think there's any rush as probate hasn't even been applied for yet, and that can take 1-2 months at least.

I will look out for 'modern method' and see what are the pitfalls.

Edit: No Matches Found

Probate can take 1-2 months at least?? Just the word "probate" is enough to put many people off offering for a house as probate can easily take 6 months to a year to be granted. My sons offered on a probate sale house back in October (probate was supposedly applied for in July 2019) but they're no nearer to completing as it still hasn't been granted. The sellers can only tell them that probate is due any day now - but they've been saying that since they accepted the offer!