Is auction a good route to go down?

housebuyer143

I have been thinking about selling my empty house at auction, not because there is anything wrong with it, but because I have had two FTBs mess me about and I do not think I have it in me to start again.

Any pros and cons I should be aware of?

jonnydeppiwish!

You’ll potentially get less buyers therefore a lower price.

Why have the FTBs pulled out? Survey results? Down valuation?

housebuyer143

jonnydeppiwish! said:

You’ll potentially get less buyers therefore a lower price.

Why have the FTBs pulled out? Survey results? Down valuation?

Thanks - I have no shortage of buyers for my house on the open market, its just so annoying. 

No, nothing like that. First buyer could not get a mortgage and this one I don't even know. Its been going on 3 months and now at time to exchange and for some reason the buyer is not ready and I think we are just going to tell them we are relisting. 

Stubod

...you will get a quick/firm sale, but you will need to accept you will get less money...

jonnydeppiwish!

housebuyer143 said:

jonnydeppiwish! said:

You’ll potentially get less buyers therefore a lower price.

Why have the FTBs pulled out? Survey results? Down valuation?

Thanks - I have no shortage of buyers for my house on the open market, its just so annoying. 

No, nothing like that. First buyer could not get a mortgage and this one I don't even know. Its been going on 3 months and now at time to exchange and for some reason the buyer is not ready and I think we are just going to tell them we are relisting. 

You could be waiting another 3 months, even by auction - perhaps tell them that you’ll continue with them but if they don’t exchange by x (be reasonable though) date then you’ll remarket?

housebuyer143

jonnydeppiwish! said:

housebuyer143 said:

jonnydeppiwish! said:

You’ll potentially get less buyers therefore a lower price.

Why have the FTBs pulled out? Survey results? Down valuation?

Thanks - I have no shortage of buyers for my house on the open market, its just so annoying. 

No, nothing like that. First buyer could not get a mortgage and this one I don't even know. Its been going on 3 months and now at time to exchange and for some reason the buyer is not ready and I think we are just going to tell them we are relisting. 

You could be waiting another 3 months, even by auction - perhaps tell them that you’ll continue with them but if they don’t exchange by x (be reasonable though) date then you’ll remarket?

It's so hard to know what to do. I know you are right. If only I could see the future 🔮🔮

simon_or

If you have plenty of interest in the property, it would be unwise to put it in auction.

Perhaps your EA isn't qualifying buyers properly, or it's an FTB property that is having a price agreed at which it's difficult to get a mortgage at a high LTV.

youth_leader

I don't recommend selling at auction, some people say you make more than the usual channels, but I haven't met anyone that has.   Two years on I think I would have got more if I'd stuck with my slippery buyer, the same surveyor came out to do the auction survey for him and he said he was 'very keen'.  But the negotiation got very ugly and I'd had enough.  I was anxious to sell as I'd already moved into rented so I paid all the fees myself.  Sold the day after the auction after very low on-line bids on the day for £275k (guide price was £315k, 'reserve' was £350K).  To enter the catalogue was £795, solicitor £1300 for the legal pack, £6,600 auction fees inc VAT.  And the buyer was - my slippery buyer from the EA.  Luckily for me the EA waived their fee.

comeandgo

One of the problems of trying to sell to FTB.  Put it back on the market and do more diligence on who you sell to, due to my bad experience with a FTB and her mother I would never sell to FTB.

canaldumidi

Yes if you have lots of interest, dont just accept the highest offer- get the EA to tell you about each prospective buyer and choose the one sounding most likely to go the whole way AND pay a decent price, even if not the top price.

housebuyer143

comeandgo said:

One of the problems of trying to sell to FTB.  Put it back on the market and do more diligence on who you sell to, due to my bad experience with a FTB and her mother I would never sell to FTB.

Its bad to generalize but some FTBs give them all a bad name! It is a FTB house though, so it is hard to find other people who want it, although we generally get offers in a few days, so I might relist and wait it out next time for an investor or someone moving from a flat. 
I actually have an offer now from another FTB (wants it if this one falls through) but I just cant bring myself to accept it after she said she pulled out her last purchase due to a survey which mentioned too much work....