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Modern auction- is it practical with a chain?

Hi we are looking to relocate from Hampshire to Lincolnshire and many houses seem to be for sale by modern auction. My wife is keen on these bargains but I am more cautious. We will be selling our house in the normal way so will have a chain our end, is it really practical or is it more for landlords rather than normal people? Worried about the completion within a month but like the no chain at the sellers end.
thanks
Rob

Comments

  • eddddy
    eddddy Posts: 16,159
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    edited 7 January at 12:48PM

    The risk with the modern method of auction is that you pay a very large reservation fee (usually £6k+), and you might not end up buying the house, and you don't get your £6k+ fee back.

    And the risk is greater if you have a chain below you.


    One of the worse scenarios might be where your seller gets "seller's remorse" because their house sold at auction for less than they hoped - so they delay and generally mess you about until your chain falls apart and/or you walk away, and so you lose your £6k+. (And the seller can then try to sell to somebody else for more.)


    A better solution might be to make an offer on a property (in writing), clearly stating that the offer is on the condition that you will not pay a reservation fee, or any other fee, prior to exchange of contracts (or completion).
     
  • youth_leader
    youth_leader Posts: 2,430
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    You could sell and move into rented, you would then be a true 'cash' buyer at traditional auction.  I sold my house at traditional auction and it is supposed to be exchange on the day,  4 weeks to completion.  My buyer asked for 8 weeks, which I allowed as it was lockdown and I was unable to get any removal companies to help me.

    £216 saved 24 October 2014
  • aircom8
    aircom8 Posts: 2
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    eddddy said:

    The risk with the modern method of auction is that you pay a very large reservation fee (usually £6k+), and you might not end up buying the house, and you don't get your £6k+ fee back.

    And the risk is greater if you have a chain below you.


    One of the worse scenarios might be where your seller gets "seller's remorse" because their house sold at auction for less than they hoped - so they delay and generally mess you about until your chain falls apart and/or you walk away, and so you lose your £6k+. (And the seller can then try to sell to somebody else for more.)


    A better solution might be to make an offer on a property (in writing), clearly stating that the offer is on the condition that you will not pay a reservation fee, or any other fee, prior to exchange of contracts (or completion).
     
    ---------------------------------------------------------------

    'A better solution might be to make an offer on a property (in writing), clearly stating that the offer is on the condition that you will not pay a reservation fee, or any other fee, prior to exchange of contracts (or completion).'
     
    Thanks for the advice. I'm taking it that the offer would be to the Auction company and not the seller direct. To put it into context, I picked up an item won on ebay from a property 10 miles up the road and discovered the that guy (who moved out 6 weeks previously and only on site to hand over the item) was selling his house at auction. After giving me an overall picture and his history with the property and what he'd be willing to accept I let him know of my interest in buying but he made it clear he would prefer to go through with the auction because he a) doesn't want any hassle of dealing with different people and b) doesn't have to pay any fees. 
  • eddddy
    eddddy Posts: 16,159
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    aircom8 said:

    ---------------------------------------------------------------

    'A better solution might be to make an offer on a property (in writing), clearly stating that the offer is on the condition that you will not pay a reservation fee, or any other fee, prior to exchange of contracts (or completion).'
     
    Thanks for the advice. I'm taking it that the offer would be to the Auction company and not the seller direct. To put it into context, I picked up an item won on ebay from a property 10 miles up the road and discovered the that guy (who moved out 6 weeks previously and only on site to hand over the item) was selling his house at auction. 

    Yep - I was assuming to the auction company, but if you have contact details for the seller, you could try approaching the seller direct. 

    The auctioneer will almost certainly push back, and probably say "You're not allowed to do that", so you'd need to ignore them. Ultimately it's for the seller to decide whether they accept your offer and your terms.


    The auctioneer almost certainly has sole selling rights, so the seller wouldn't be able to avoid the auctioneer's fees by dealing with you direct (unless they want to try to deceive the auctioneer). 



  • aircom8
    aircom8 Posts: 2
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    Thanks. I got his phone number when I met him but he hasn't replied to my last message - I'm guessing because of his total reluctance to deal with anyone direct. Our property is now up for sale so I suppose I could always buy another .99p item off him if push comes to  shove :)
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