Probate property - to auction or not?

Doshwaster

I'm the executor of my aunt's will with her house to sell. Probate has recently been granted and the house emptied.

The property is in a decent location but will need total gutting and renovation as it was a typical old person's house which hadn't been modernised, decorated or looked after for decades. It's going to be an interesting development project for someone.

I've starting to talk to estate agents about valuations and have a some booked in the next few days. One asked whether I had considered an auction. To be honest, I hadn't. What are the pros and cons?

canaldumidi

You'll get developers at an auction- looking for a bargain!

Providing the property is habitable (and hence mortgageable!), meaning it has a working kitchen and bathroom, I would go with a traditional estateagent.

They can (should) advertise it appropriately as requiring updating, modernising etc. but that way you'll get a wider group of potential buyers including those willing to live in it and do it up as their home, not just investors.

If it gets no interest or offers, you can always auction it later.

Thrugelmir

Market the property through an EA. You maybe surprised at the level of interest. 

FreeBear

Pro of (traditional) auction - Quick sale.

Con of (traditional) auction - May not achieve top price.

Modern method of auction - Do not touch with a barge pole. It will put most potential buyers off.

Doshwaster

canaldumidi said:

You'll get developers at an auction- looking for a bargain!

Providing the property is habitable (and hence mortgageable!), meaning it has a working kitchen and bathroom, I would go with a traditional estateagent.

They can (should) advertise it appropriately as requiring updating, modernising etc. but that way you'll get a wider group of potential buyers including those willing to live in it and do it up as their home, not just investors.

If it gets no interest or offers, you can always auction it later.

Thanks - that's given me something to think about

I'm looking for the lowest cost way of selling.The property is borderline habitable and I'm expecting the valuations to come in at £40k so I would expect anyone interested would be a cash buyer.  It's a 2 bed terraced in the North East where even a fully modernised 2 bed house would only go for £90-95k, though a few of the neighbours have extended into the attic for a third bedroom so the ceiling price for the street is probably £110-120k.

youth_leader

I found selling at auction eye wateringly expensive.  I had to pay £795 to enter the auction, £1200 to my solicitor, and a huge fee of £6,600 including VAT to the auction house on my £275K sale.  I wouldn't recommend.  I'm in the NE and demand for houses is high, try Rook Matthews Sayer, houses are flying off their books.

theoretica

Ask the estate agent for their version of the pros and cons?  And costs!

Doshwaster

FreeBear said:

Pro of (traditional) auction - Quick sale.

Con of (traditional) auction - May not achieve top price.

Modern method of auction - Do not touch with a barge pole. It will put most potential buyers off.

Got my first valuation today. A little more than I was expecting but there are two more to come next week.

Agent was really pushing the "modern auction" in terms of it being a quicker sale. Said that private sales of houses in "distressed" conditions were more likely to fall through as buyers get cold feet after getting the surveyors report.

FreeBear

Doshwaster said: Agent was really pushing the "modern auction" in terms of it being a quicker sale.

Riiiight.... That would explain why some of these properties stay on rightmove for months on end...

user1977

Doshwaster said:

FreeBear said:

Pro of (traditional) auction - Quick sale.

Con of (traditional) auction - May not achieve top price.

Modern method of auction - Do not touch with a barge pole. It will put most potential buyers off.

private sales of houses in "distressed" conditions were more likely to fall through as buyers get cold feet after getting the surveyors report.

Probably true, but "modern method of auction" will send any sensible buyers running as soon as they see the listing. And if a buyer under that method doesn't end up proceeding, the only winner is the estate agent as they pocket the initial "deposit", before moving on to the next mug potential buyer.

diggingdude

Please don't touch "modern method of auction". 95% will either walk away of Google, see sites like this, see the cons and walk away.

The house I really wanted was modern method of auction. I live somewhere else