MODERN AUTION

Stumpy999

I am thinking of selling my property using the Modern auction method.  There is absolutely no issues with my house unfortunately just the economy and the slow housing marketing.  I have had 2 buyers both have withdrawn at the last minute and I am so fed up. 

This method has just come to my attention and it sounds a good idea but I am worried I have missed something in the small print and will lose money.  Anyone had experience selling using this method.

than you

martindow

Have a search in the forum for threads on Modern Auctions.  The universal opinion is that they are a terrible idea for buyers and thus not good for sellers if many buyers are discouraged.  The only people who benefit are the agents.

TonyMMM

As a buyer, I wouldn't even consider it

FreeBear

TonyMMM said:

As a buyer, I wouldn't even consider it

Same here.

Why limit your pool of potential buyers when traditional methods of selling still work. If you really want a quick, guaranteed sale, use a traditional auction with a reserve price.

pinkshoes

You will limit your number of buyers (most won't touch Modern Auction Method with a barge pole!) and thus the price you will achieve.

Use a normal auction with a reserve, or just list it at a sensible price with an EA. Did you find out why the buyers dropped out?

NameUnavailable

No, don't try the 'modern' auction!

If you want a quick(er) sale, a traditional property auction is the way to go but you won't get as much for the property. The benefit is if someone bids (at or above reserve) then you exchange on the day and complete 4 weeks later typically. No chance of buyers getting cold feet or changing their minds.

The downside is that you'll probably be selling at a fair bit less than you might get for a 'normal' sale via an agent.

Why did the other buyers pull out?

Stumpy999

My first buyer wanted to cut the price by £60,000 2 weeks before we were due to move.  It seems this happens all the time.

2nd buyer was an investment company, they wanted to make my home into HMO flats, unfortunately one investor pulled out so they could not go forward.  

Stumpy999

My first buyer wanted to cut the price by £60,000 2 weeks before we were due to move.  It seems this happens all the time.

2nd buyer was an investment company, they wanted to make my home into HMO flats, unfortunately one investor pulled out so they could not go forward.  

MultiFuelBurner

Knocking £60k off last minute does not happen all the time.

walwyn1978

Absolutely no to modern auction. You’re limiting your prospective purchase pool as lots of people either don’t understand them and thus are less likely to get involved or don’t like them and thus are less likely to get involved. Plus after fees etc you won’t get to what the hammer price is.

Rather than doing a modern auction have you considered changing the EA? 

timehastoldme

I'm optimistically on right move etc all the time and have a few modern method properties in my watch list. Not that we'd ever buy that way, but because they're often not selling at the cheapish auction price then being opened up for offers below that.

Definitely don't sell like that.