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

RHemmings

eddddy said:

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.

The majority of houses I've seen on MMoA sites that have sold have sold for the starting bid. Some of them disappear from the site with 0 bids, and return with a single bid and they have sold for the starting bid. 

When I was first looking at MMoA properties, I presumed that there would be a higher reserve price and the property wouldn't sell for that. So, when I saw properties selling for the starting bid I was very surprised. And, that's when I started thinking. 

Effectively I bought my house for the starting bid. Though, I put the other monies that I would have paid if I bought by MMoA on top of that. 

This house here actually has bids on it, however, and has progressed above the starting bid. This is unusual, in my experience. But, I've only been watching while it's been pretty much a buyers' market. https://www.iamsold.co.uk/property/b8978432b15a418b99d4f580662bf569

One that's interesting to me is this studio flat. Starting bid of £25k. I can't see how it can fail to have a bidding war with that starting price. Time will tell, of course. https://www.iamsold.co.uk/property/671d485ca9c4495f9037a88180e51a8d

Mrnkar_2 said:

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

You asked @eddddy, not me. But, if it doesn't mention the name of the auction platform on Rightmove, or in an EA window, I would just ask the EA. 

Mrnkar_2

Sorry about that. You both have been very helpful and I'm learning a lot. Thank you for all the replies.

RHemmings

Mrnkar_2 said:

Sorry about that. You both have been very helpful and I'm learning a lot. Thank you for all the replies.

I would very much like to see someone do what I did, and find out what happens. No need to thank me - I'd be happy to do more should you choose to go ahead. 

Mrnkar_2

RHemmings said:

Mrnkar_2 said:

Sorry about that. You both have been very helpful and I'm learning a lot. Thank you for all the replies.

I would very much like to see someone do what I did, and find out what happens. No need to thank me - I'd be happy to do more should you choose to go ahead. 

I will let you know if the situation arises.
The property I am interested in is about to go on the market shortly. I'm not even sure if it will be MMoA but I suspect it will. It is an empty house and I've made enquiries previously regarding my interest to purchase it. I know which EA it is going to be listed with & have also contacted them showing my interest but they said to keep checking Rightmove and contact them when it is listed?
Hopefully it will be a normal sale to save a lot of hassle but I am prepared now if it isn't the case.

Mrnkar_2

Not sure whether to start a new thread or not regarding my previous queries. 
The house I am interested in is now listed on an online auction site and not as I previously thought with an EA.
I haven't much time as the auction runs from 15th - 16th May.
A bit of history. House has been empty for years as both owners were in a care home. I know one of them passed away and think possibility the other now has. 
The property is listed as a repossession and the seller is an Insurance company down as the mortgagee.
Having read the Legal pack it doesn't seem straightforward so I contacted my previous solicitor to ask if they could read it. 
They charge £450 + Vat to do it and said they would reduce that cost if I use them if I purchase the property. 
It seems very expensive given that I may not even bid on it if it is complicated.
I would be grateful for any advice. Thank you. 
PS The house needs a good deal of work having suffered a severe water leak, but I have wanted to purchase it for years and I know the complete history of the property.

BarelySentientAI

Mrnkar_2 said:

Having read the Legal pack it doesn't seem straightforward so I contacted my previous solicitor to ask if they could read it. 

It seems very expensive 

Those two facts go hand in hand.  If you're relying on someone to interpret complicated things and give you advice on spending tens or hundreds of thousands of pounds, how much do you think you should spend on that advice?

Would you really trust they'd actually spend the time properly considering it if the price was much lower?

Mrnkar_2

BarelySentientAI said:

Mrnkar_2 said:

Having read the Legal pack it doesn't seem straightforward so I contacted my previous solicitor to ask if they could read it. 

It seems very expensive 

Those two facts go hand in hand.  If you're relying on someone to interpret complicated things and give you advice on spending tens or hundreds of thousands of pounds, how much do you think you should spend on that advice?

Would you really trust they'd actually spend the time properly considering it if the price was much lower?

Thank you. It just seemed quite a lot given that the cost of buying or selling a house the solicitor's fees are about normally about  £1000.

BarelySentientAI

Mrnkar_2 said:

BarelySentientAI said:

Mrnkar_2 said:

Having read the Legal pack it doesn't seem straightforward so I contacted my previous solicitor to ask if they could read it. 

It seems very expensive 

Those two facts go hand in hand.  If you're relying on someone to interpret complicated things and give you advice on spending tens or hundreds of thousands of pounds, how much do you think you should spend on that advice?

Would you really trust they'd actually spend the time properly considering it if the price was much lower?

Thank you. It just seemed quite a lot given that the cost of buying or selling a house the solicitor's fees are about normally about  £1000.

Which would include much of the same work - and they do seem to have said that you won't pay for that bit twice.

RHemmings

Mrnkar_2 said:

Not sure whether to start a new thread or not regarding my previous queries. 
The house I am interested in is now listed on an online auction site and not as I previously thought with an EA.
I haven't much time as the auction runs from 15th - 16th May.
A bit of history. House has been empty for years as both owners were in a care home. I know one of them passed away and think possibility the other now has. 
The property is listed as a repossession and the seller is an Insurance company down as the mortgagee.
Having read the Legal pack it doesn't seem straightforward so I contacted my previous solicitor to ask if they could read it. 
They charge £450 + Vat to do it and said they would reduce that cost if I use them if I purchase the property. 
It seems very expensive given that I may not even bid on it if it is complicated.
I would be grateful for any advice. Thank you. 
PS The house needs a good deal of work having suffered a severe water leak, but I have wanted to purchase it for years and I know the complete history of the property.

Is this MMoA or traditional auction? Is there a very, perhaps very unrealistically, low guide price? If it's repossessed, I would guess that it would be sold by traditional auction. Make sure you read every word of the contract, as quite often there are additional charges in there, sometimes a long way down. If this is traditional auction, then perhaps a new thread would be best. As it would be neither MMoA or open market.

I agree with @BarelySentientAI that the £450 + VAT is about what I would expect for that work of going through the legal pack, and reducing the cost if you purchase through them sounds reasonable. 

ReadySteadyPop

Worried_of_wakefield said:

Have researched on the internet so I understand the mechanics, but would like to hear from people who have experienced the MMoA.

Inherited property, detached bungalow, circa £300K aged mother in-laws house so quite 'tired' needing work at some stage.

My worry is the estate agents are pushing hard on MMoA, which they would as thier rewards are greater

Sounds like the EA`s are starting to struggle, how are general sales going in your area?