Selling - Open market or modern method of auction(MMoA)

RHemmings

Zoe02 said:

Forget MMOA only puts more money in the agent's pocket and less in yours.

Here we are discussing buying a property on sale by MMoA, but purchasing by private treaty. This is a different situation. The OP has stated that they would not buy by MMoA, and I refused to buy by MMoA as well. 

Mrnkar_2

Hi. If I see a house listed for sale by means of modern auction, but from reading on here I shall not go down that route.
 How do I find out if any bids have been made on it so that I could try by private treaty after the auction ends without a sale?  Thank you

RHemmings

Mrnkar_2 said:

Hi. If I see a house listed for sale by means of modern auction, but from reading on here I shall not go down that route.
 How do I find out if any bids have been made on it so that I could try by private treaty after the auction ends without a sale?  Thank you

All the MMoA websites I'm familiar with will show if there are bids on a property. In some, if a property doesn't get any bids, then it disappears from the site. And possibly will return later. 

If you are serious about a property, I recommend that you watch the auction finish live. That way you'll see if there are any bids. But, if you can't do that, and the property has disappeared from the site, then I would guess that there have been no bids. As most will mark a sold property sold. 

I have seen properties that appeared to fail to sell, but then reappeared on the website as 'sold' later on. But, most of them return as unsold. 

In my case, I watched the auction finish with no bids, and then emailed my (pre-written) offer seconds later. 

In general if you're interested in a property on a MMoA website, I would bookmark and watch some other auctions to see how things work (including how many properties get bids). If I hadn't done that, I would never have bought my house. As it was seeing houses (including the one I eventually bought) failing to get any bids that put ideas in my head. 

Mrnkar_2

RHemmings said:

Mrnkar_2 said:

Hi. If I see a house listed for sale by means of modern auction, but from reading on here I shall not go down that route.
 How do I find out if any bids have been made on it so that I could try by private treaty after the auction ends without a sale?  Thank you

All the MMoA websites I'm familiar with will show if there are bids on a property. In some, if a property doesn't get any bids, then it disappears from the site. And possibly will return later. 

If you are serious about a property, I recommend that you watch the auction finish live. That way you'll see if there are any bids. But, if you can't do that, and the property has disappeared from the site, then I would guess that there have been no bids. As most will mark a sold property sold. 

I have seen properties that appeared to fail to sell, but then reappeared on the website as 'sold' later on. But, most of them return as unsold. 

In my case, I watched the auction finish with no bids, and then emailed my (pre-written) offer seconds later. 

In general if you're interested in a property on a MMoA website, I would bookmark and watch some other auctions to see how things work (including how many properties get bids). If I hadn't done that, I would never have bought my house. As it was seeing houses (including the one I eventually bought) failing to get any bids that put ideas in my head. 

Thank you. I haven't a clue about MMoA's. I can see them listed on Rightmove with normal EA's so not sure how to find out who the auctioneers are or how to watch it. One is coming up as reduced in price so I suspect that it has previously been listed but not bid on. I'm grateful for any help you can give. Thank you

RHemmings

Mrnkar_2 said:

RHemmings said:

Mrnkar_2 said:

Hi. If I see a house listed for sale by means of modern auction, but from reading on here I shall not go down that route.
 How do I find out if any bids have been made on it so that I could try by private treaty after the auction ends without a sale?  Thank you

All the MMoA websites I'm familiar with will show if there are bids on a property. In some, if a property doesn't get any bids, then it disappears from the site. And possibly will return later. 

If you are serious about a property, I recommend that you watch the auction finish live. That way you'll see if there are any bids. But, if you can't do that, and the property has disappeared from the site, then I would guess that there have been no bids. As most will mark a sold property sold. 

I have seen properties that appeared to fail to sell, but then reappeared on the website as 'sold' later on. But, most of them return as unsold. 

In my case, I watched the auction finish with no bids, and then emailed my (pre-written) offer seconds later. 

In general if you're interested in a property on a MMoA website, I would bookmark and watch some other auctions to see how things work (including how many properties get bids). If I hadn't done that, I would never have bought my house. As it was seeing houses (including the one I eventually bought) failing to get any bids that put ideas in my head. 

Thank you. I haven't a clue about MMoA's. I can see them listed on Rightmove with normal EA's so not sure how to find out who the auctioneers are or how to watch it. One is coming up as reduced in price so I suspect that it has previously been listed but not bid on. I'm grateful for any help you can give. Thank you

Can you give a link to a sample house? Generally the MMoA auction house will be listed in the RightMove listing somewhere. Once you have found the auction house, you can then search the area and find the house. For all MMoA companies I've seen. 

Mrnkar_2

https://www.rightmove.co.uk/properties/146161370?utm_campaign=property-details&utm_content=buying&utm_medium=sharing&utm_source=copytoclipboard#/&channel=RES_BUY

eddddy

Mrnkar_2 said:

https://www.rightmove.co.uk/properties/146161370?utm_campaign=property-details&utm_content=buying&utm_medium=sharing&utm_source=copytoclipboard#/&channel=RES_BUY

That estate agent works with a site called iamsold.co.uk for its auction properties.

As far as I'm aware, iamsold was the first company to offer 'The Modern Method of Auction' - and now a few others have come along.

RHemmings

Here is the property on the iamsold.co.uk website:

https://www.iamsold.co.uk/property/5ae31f4a6974409f943827d5e6c1aad6

Looking on RightMove, the asking price went down from £140K to a £125k guide price. That's the starting bid on iamsold. The vendors will likely be expecting more, and be hoping for a bidding war. But, it's quite common that the current auction will end with no bids. And, normally, the property will then go to 'pre-auction marketing' for some time before being auctioned again. If the house is being repeatedly auctioned for £125k and getting no bids, this *may* condition the sellers downwards. 

If someone was to apply the same strategy as me, then they would aim for the £125k + the fees + the auction pack price. At 4.5% 'non-refundable reservation fee', it won't reach the minimum so the fee will be £6600. Add on the auction pack price of £300, and that would be a total of £131,900. However, there's no reason why a buyer couldn't offer whatever they wanted. And, of course there's no reason a seller has to accept £125k (which is what they would get). This is just me using that house as an example of my strategy. 

£131,900 is still a useful bit lower than the previous £140k previous asking price. It's not a light and day difference. But, if that's a house you're seeing now and you would be happy to pay that (or a slightly different offer) it's probably worth a go.

Similar reasoning will apply to other houses.  

eddddy

RHemmings said:

Looking on RightMove, the asking price went down from £140K to a £125k guide price. 

Fwiw, ASA rules are that the guide price must be within 10% of the reserve price....

... which tends to mean that most auction houses always set set guide prices at 10% below reserve prices.


So the reserve price could still be very close to £140k.

Mrnkar_2

eddddy said:

Mrnkar_2 said:

https://www.rightmove.co.uk/properties/146161370?utm_campaign=property-details&utm_content=buying&utm_medium=sharing&utm_source=copytoclipboard#/&channel=RES_BUY

That estate agent works with a site called iamsold.co.uk for its auction properties.

As far as I'm aware, iamsold was the first company to offer 'The Modern Method of Auction' - and now a few others have come along.

Thank you so much. Can I ask how you find which auction house the agents use if it's not on EA website. Handy to know for other properties. Thank you