Modern Method of Auction - powered by iamsold Ltd

moliver_93

Hi all,

I am helping my parents downsize and have found a potentially suitable property. It's on the market with an estate agent but is being auctioned via Modern Method of Auction - powered by iamsold Ltd.

I've not had any experience of this before, looking for any advice or things I should watch out for if they decide to proceed with this property. I can't see when it was originally listed, but rightmove does state it was reduced on 29/7/2021, which I'm slightly dubious about as it's a nice property for a low price.

Thanks! 

Doozergirl

Run.  Run like the wind.   They're a disaster.  I'm a seasoned buyer, understood the deal and still have not had great experience.  

I feel sorry for the vendors in these situations.  Your parents pay double estate fees, essentially, on behalf of the vendor, so they knock those upfront fees off the price they would ultimately be prepared to pay.  

Your parents are then bound by the contract to complete in x days but the vendor isn't!  They can leave you hanging, like mine did, for 10 months when I eventually pulled out.  My 'vendor' never had the legal capability to sell the property and neither the EA or IAS thought it would be a good idea to check before taking my money.  

user1977

Seconded. This is not a suitable property, because of the method of selling.

TripleH

@Doozergirl, did you get your money back then if the 'vendor' lacked the legal capability to sell the property?

youth_leader

I'm glad to have read on here about not touching modern auctions with a barge pole.  There's an allotment for sale in my village, unfortunately for sale by modern auction through iamsold and our local estate agent.  

NameUnavailable

maxboisvert said:

Hi all,

I'm slightly dubious about as it's a nice property for a low price.

Thanks! 

The 'price' is meaningless - it's a so called auction and what you see is the guide price, not what the vendor will actually accept. Bear in mind you have to pay a non refundable deposit up front and have limited time to then complete the legals.

Don't even look at the place until it's (back) on the market as a normal sale.

london21

Run away.

Read the full terms and condition.

The fees are in the rage 4%+

Anyone can bid, there is no credit card or ID requirements like the traditional auction companies.

The company is a scam. 

Scotbot

Forget it. You will have to pay an upfront non refundable fee of at least 6k if you win. You also have to pay the deposit usually 10% then have 56 days to complete.  If any legal or survey issues come up tough. You cannot alter the price and if you walk away You lose the money you have paid. Likewise if you are unable to complete your finances in time. 

deannagone

You could find there is a structural/legal problem that is making the property such good value.  You will only find this out after winning the auction, paying the very large fee, starting the conveyancing process - and you won't get a refund if the problem is such you pull out.  Or there could be another problem making the owner willing to auction the property in this way.  

It can work, but there are so many ways for this method of selling to be misused, its just not worth venturing the fee.  The EA just collects the fee each time another buyer comes along and bids successfully. so its a very good proposition for them.  The owner thinks its a good proposition for them because they don't have to pay fees, but they may not realise at first it means there will be very few buyers because of the risks for buyers and will raise a much lower price.  

It is possible to get bargains when buying a property, but there are also many instances when there are good reasons they are so cheap.

YoungBlueEyes

When we were house hunting I saw a great house on RM. It was for sale by modern method of auction so we didn’t even view it. 

Have a search on here about it, read the threads that come up. 

Doozergirl

TripleH said:

@Doozergirl, did you get your money back then if the 'vendor' lacked the legal capability to sell the property?

Yes, I did.  IAS were fine about giving it back in the end.