Petition to stop First time buyers being exploited via "modern auctions" and buyers auction fees?

Section62

Scotbot said:

It's not just the fees that are the issue. You have to complete within 56 days and if you can’t finalise your mortgage in time you lose  the money. Secondly if you do a survey and find a problem you can't renegotiate or withdraw and good luck getting a survey done before the auction.

Good reasons for FTB's to be banned from buying through any kind of auction, if the OP wanted to champion that cause.

TBG01

Scotbot said:

It's not just the fees that are the issue. You have to complete within 56 days and if you can’t finalise your mortgage in time you lose  the money. Secondly if you do a survey and find a problem you can't renegotiate or withdraw and good luck getting a survey done before the auction. Modern auction method should be renamed mugs auction method.

It's all information that's easily obtained and readily available before bidding.

People should do their own research and take some responsibility instead of jumping into things and making out they've been hard done by.

steampowered

I think it is absolutely ridiculous that you are asking the government to intervene.

I could understand if the fees were hidden. But it sounds like you are fully aware of the fees before you bid.

Simply factor the fees into your bid. 

If you don't want to pay the fee, don't bid.

anselld

It is the vendor who is dissadvantaged by Modern Auction method which is fine as it was their choice for whatever reason.  This is because ..

(a)  most buyers ignore such properties so the field of buyers is drastically reduced

(b)  any who do bid would discount the fees from the offer price

Sandtree

Scotbot said:

It's not just the fees that are the issue. You have to complete within 56 days and if you can’t finalise your mortgage in time you lose  the money. Secondly if you do a survey and find a problem you can't renegotiate or withdraw and good luck getting a survey done before the auction. Modern auction method should be renamed mugs auction method.

Again you are not talking about anything "modern"

Auctions have always been excluded from normal consumer rights type protections of buying via a company and so caveat emptor applies. If you've not been able to get a survey done before the auction then you know the risks you are taking when you enter the binding contract blind.

If you think you have such a great idea of a different way of doing these things and think online auctions are cheap to run why aren't you setting up your own rival service and securing 90% of the market through much better solutions?

user1977

Sandtree said:

Scotbot said:

It's not just the fees that are the issue. You have to complete within 56 days and if you can’t finalise your mortgage in time you lose  the money. Secondly if you do a survey and find a problem you can't renegotiate or withdraw and good luck getting a survey done before the auction. Modern auction method should be renamed mugs auction method.

Auctions have always been excluded from normal consumer rights type protections of buying via a company and so caveat emptor applies.

Not specifically auctions - it's buying (or selling) property in general which is excepted from much consumer rights protection - on the assumption that the parties will have the benefit of independent legal advice before committing themselves to anything. Unfortunately (in England & Wales at least) it seems often to be the case that punters are getting knee-deep in deals long before they consult a solicitor, who then gives them the bad news about what they've signed up to.

sidneyvic

Seems like the OP has seen a house at a cheap price, that their Son can afford but is moaining about paying the auction fee ??? The guide is just that a guide, it will probably go for more and if he cant afford the 6k fee, he definitely cant't afford the house...
The onky ones being conned by these modern method of auction are they buyers as inevitably the house sells for a much lower price, yet the agent gets a much higher commission, if it even sells...

TripleH

If the house will sell on the open market then there is no need for a 'modern auction' or in fact any auction.

To me either the price is wrong for the property or a quick sale is required if an auction is used.

Ath_Wat

TripleH said:

If the house will sell on the open market then there is no need for a 'modern auction' or in fact any auction.

To me either the price is wrong for the property or a quick sale is required if an auction is used.

Auctions are for sellers who want a quick sale.  To get a quick sale they accept a lower price.

The buyers in auctions are (or should be) people operating as businesses who are accepting of some risk in order to get that lower price because they are not buying their "forever home", they are doing something they do regularly and they expect the problems to be balanced in the  long run by the ones that go smoothly..

Slithery

Ath_Wat said:
Auctions are for sellers who want a quick sale.  To get a quick sale they accept a lower price.

Either that or they are normal sellers who have been talked into the 'modern-method' by a slick-talking EA looking to maximise their profits...