Modern auction

Samfred2868

Happy Christmas to all
Looking to buy a property & it will be sold by "Modern Method of Auction"
Would any of you have experience of these, please ?

Auctioneer's Comments 
This property is offered through Modern Method of Auction. Should you view, offer or bid your data will be shared with the Auctioneer, iamsold Limited. This method requires both parties to complete the transaction within 56 days, allowing buyers to proceed with mortgage finance (subject to lending criteria, affordability and survey).

The buyer is required to sign a reservation agreement and make payment of a non-refundable Reservation Fee of 4.2% of the purchase price including VAT, subject to a minimum of £6,000.00 including VAT. This fee is paid in addition to purchase price and will be considered as part of the chargeable consideration for the property in the calculation for stamp duty liability. Buyers will be required to complete an identification process with iamsold and provide proof of how the purchase would be funded.

The property has a Buyer Information Pack containing documents about the property. The documents may not tell you everything you need to know, so you must complete your own due diligence before bidding. A sample of the Reservation Agreement and terms and conditions are contained within this pack. The buyer will also make payment of £300 inc VAT towards the preparation cost of the pack.

The estate agent and auctioneer may recommend the services of other providers to you, in which they will be paid for the referral. These services are optional, and you will be advised of any payment, in writing before any services are accepted. Listing is subject to a start price and undisclosed reserve price that can change.
Agent Note 
The property is for sale by the modern method of auction should you view, offer or bid on the property your information will be shared with the auctioneer iamsold limited. This method of auction requires both parties to complete the transaction within 56 days of the draft contract for sale being received by the buyers solicitor. This additional time allows buyers to proceed with mortgage finance.
Agent Note 
The buyer is required to sign a reservation agreement and make payment of a non-refundable reservation fee. This being 4.2% of the purchase price including VAT subject to a minimum of £6000.00 inc VAT. The reservation fee is paid in addition to purchase price and will be considered as part of the chargeable consideration for the property in the calculation for stamp duty liability. Buyers will be required to go through an identification verification process with iamsold and provide proof of how the purchase would be funded.
Agent Note 
The property has a buyer information pack which is a collection of documents in relation to the property, the documents may not tell you everything you need to know about the property so you are required to complete your own due diligence before bidding. A sample copy of the reservation agreement and terms and conditions are also contained within this pack. The buyer will also make payment of £300.00 inc VAT towards the preparation cost of the pack where it has been provided by iamsold. The property is subject to an undisclosed reserve price with both the reserve price and starting bidding being subject to change.
Agent Note 
Referral arrangements, the partner and agent and auctioneer may recommend the services of third parties to you, whilst these services are recommended as it is believed that they will be of benefit you are under no obligation to use any of these services and you should always consider you options before services are accepted. Where services are accepted the auctioneer or partner agent may receive payment for the recommendation and you will be informed of any referral arrangement and payment prior to any services being taken by you.

jimbog

Plenty of threads on this already if you use the search facility.
The conclusion is 'don't'

verybigchris

Don't do it.

There's a very good reason why the seller is using Modern Method of Auction, and it's not because they've got a perfect house that they want to give away for a bargain. There's something fundamentally wrong with the property (most likely making it unmortgageable), and you will be legally committed to paying a minimum of £7,560 just to find out what it is.

SpiderLegs

Find a different property.

davidmcn

verybigchris said:
There's a very good reason why the seller is using Modern Method of Auction, and it's not because they've got a perfect house that they want to give away for a bargain. There's something fundamentally wrong with the property (most likely making it unmortgageable), and you will be legally committed to paying a minimum of £7,560 just to find out what it is.

I think it's more likely that they're just gullible and have gone along with the estate agents' suggestion of this being the greatest way of marketing the property (which obviously it is for the estate agents, as they get their hugely inflated commission every time a mug potential buyer comes along, whether or not they actually complete a sale).

Blue_bell_20

I saw two nice properties online but decided against even viewing. Didn’t want to pay 10k+ in a fee that’s not even included in the purchase. I would rather it all go towards the deposit. So we decided against. I can’t say if it’s good or not, we just decided to rule modern method auction houses out after finding out about the fee. 

There are threads on here explaining if the sale goes on longer than the set period then you could lose that fee/money paid and be without a purchase. 

diggingdude

Get your deposit, spend £50 on a good pair of trainers, and run away from modern auction properties 

NameUnavailable

If you like the look of the property just wait - eventually the seller will give up with trying this type of 'auction' and put it up for sale as normal, unless you find something else before then of course. DON'T view it though or else they'll still be after you for the fees as they'll claim you viewed it under the auction sale so auction terms still apply.

csgohan4