Modern Auction Method.....Any Positives

TwirlingQueen

Just wondering if anyone has had any positive experiences with buying a house via modern auction.

I'm seeing lots of people saying run don't walk! But the more I am looking for a new property the more are up via this method every week, not just old doer uppers either!

Is it just too risky or is it worth it and are sellers only using to get a quick sale rather than anything untoward........

RHemmings

I'm keeping an eye on modern method of auction around my way. It appears that there are some bargains to be had, even after fees are applied. In the current market. However, the risk of fall-through has to be factored in. I put a cost on that in my mental calculations. 

I'm not saying that I am full on for buying via modern method of auction. But, I'm keeping an eye on it. 

TwirlingQueen

I've just read your thread before you commented!

I went up there, spoke to neighbour and asked if she could get me the owners details, she told me told it was previously being rented, now empty. Haven't heard anything but I've booked to view it properly on Monday.

There is just so many coming up for sale that way now, I'm thinking just take the risk if the perfect house for a bargain price....I'm assuming some are due to mortgage hikes so want a quick sale, but then I always think if its too good to be true it usually is

RHemmings

TwirlingQueen said:

I've just read your thread before you commented!

I went up there, spoke to neighbour and asked if she could get me the owners details, she told me told it was previously being rented, now empty. Haven't heard anything but I've booked to view it properly on Monday.

There is just so many coming up for sale that way now, I'm thinking just take the risk if the perfect house for a bargain price....I'm assuming some are due to mortgage hikes so want a quick sale, but then I always think if its too good to be true it usually is

I suggest you watch-list a lot of properties and see what happens. I've done so and I now have a handle on how well it is working around my way. Which it isn't as most properties have no bids. If you do that, then you'll at least have an idea about it. 

But, I'm not recommending the method. It is dangerous for buyers. Both in that you can end up losing your non-refundable reservation fee for no fault of your own. And, you might rush into a purchase of a property that you haven't checked out properly. 

EDIT: Since I posted this, another property has just sold by modern method of auction around my way. For the starting bid, and it's shown as 'sold' on the site. 

TwirlingQueen

Oh that's good to know! I'm going to keep my eye on them like you say. Ill view on Monday and speak to the agents see what they say! 

I think the same to be honest they don't seem to be selling, its a lot of money to lose for nothing, id rather pay for a survey first if I was worried and really wanted the house.

RHemmings

One of the ones that sold today doesn't look particularly special or cheap to me. The few others that sold - all had something about them where I could see the risk might be worth it for someone. (Considering the prices sold.)

I know that others here don't like bad methods of selling promoted here, and I don't mean to promote them. There are financial reasons why I personally feel I can take a bit of a risk. 

diane***

the question is , can you afford to lose the non refundable deposit they ask for ?  i don't understand it,  they take deposits off all interested parties,  seems a way to make a fast quid for the estate agents,  i know we want a house but this deposit is money you earned,  would you put that amount on a horse?  i say don't gamble, buy in the normal way or real auction that way you don't run such a big risk.

RHemmings

diane*** said:

the question is , can you afford to lose the non refundable deposit they ask for ?  i don't understand it,  they take deposits off all interested parties,  seems a way to make a fast quid for the estate agents,  i know we want a house but this deposit is money you earned,  would you put that amount on a horse?  i say don't gamble, buy in the normal way or real auction that way you don't run such a big risk.

I'm not sure if this is addressed to me or to the thread in general. Sorry if I misinterpreted things.

For complicated reasons, yes. I don't want to obviously, but if I did it wouldn't ruin my life. 

However, I've been looking further into the modern method of auction, and I have found some things I'm very uncomfortable with. And, I've flipped back to the 'bargepole' camp. At least for the meantime. I'm looking further.

TwirlingQueen

diane*** said:

the question is , can you afford to lose the non refundable deposit they ask for ?  i don't understand it,  they take deposits off all interested parties,  seems a way to make a fast quid for the estate agents,  i know we want a house but this deposit is money you earned,  would you put that amount on a horse?  i say don't gamble, buy in the normal way or real auction that way you don't run such a big risk.

I do agree, but there are more & more being sold this way, I spoke to the agents and unless its you that pulls out you would get the money back. It was 1 house in particular I really liked and it was a really good price, looks like it probably sold today anyway now so I was a little late to the party ha ......I would definitely prefer to buy the traditional way but more and more seem to be going up this way so may have accept it if something I really loved came up

RHemmings

Quoting won't work on my phone. Please do not trust the agent if they say you will get your money back if it isn't you that pulls out. Yout contract is not with the agent and they can't change it. Also, yhe seller can drag their feet and run you out of time. Around my way only a small fraction of houses are sold this way. 

RHemmings

Do not even think of modern method of auction to get a bargain unless you are prepared to risk losing jour reservation fee without successfully buying a house.