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

newsgroupmonkey_

Slithery said:

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...

I think this is more likely. Estate agents selling snake oil.

Let's be frank, a £160k house isn't normally going to attract £6k fees. The Estate Agent here is absolutely laughing.

user1977

newsgroupmonkey_ said:

Slithery said:

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...

I think this is more likely. Estate agents selling snake oil.

Let's be frank, a £160k house isn't normally going to attract £6k fees. The Estate Agent here is absolutely laughing.

And that's an extra £6k from any abortive sales too.

GDB2222

A simple solution to the problem is for people on this forum to leave negative reviews on Trustpilot and Google for estate agents who use modern auctions. There are enough people here who feel strongly enough about it that it could lead to a major downturn in ratings.

Perhaps someone would like to post a short list of firms?

diggingdude

If I see modern method of auction I automatically rule out the property. I don't think enough people selling realise how many potential purchasers walk away from these properties 

saajan_12

Urttem said:

What would force competition is making the vendor pay any such fees!

 We would then see real competition for custom, based on value for money and service and not simple exploitation of the weakest people in the current housing market – the buyers; often young first time buyers where the real desperation for housing lies.

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.

You already have competition without these fees and deadlines - its called traditional estate agents, which is where FTBs should go.
- Vendor pays EA commission so there is competition to keep those low
- You have time to do surveys, searches, renegotiate etc before committing to the purchase (ie exchange)
- No firm 28/56day deadline to complete. 

Now there is also a market of sellers for whom that doesn't work - eg repossessions, quick sale needed etc. The whole point is to avoid the long timescales, via an auction. There's also a market of buyers for whom the risk of no survey etc is worth the often lower sale price.
Re fees, a buyer should just look at whether they want to pay '£x + 6k'. How much of that goes to the vendor vs auction house / EA isn't anything to do with the buyer. That's the vendor's problem, which often comes because they don't have any other options or the speed is worth it to them. 
If auctions work for some sellers and some buyers then what's wrong with letting them carry on. FTBs don't have to be involved. 

Sandtree

user1977 said:

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.

Auctions in general are excluded from consumer rights even when its not property that's being sold (with the one exception of a commercial seller clearly selling brand new items).

The law's assumptions and reality dont always match in many places.