I bought a 'modern method of auction' property

RHemmings

(clickbait title) ... but I didn't buy it by modern method of auction. I bought it as a standard private treaty sale. 

A well-known person on this thread suggested before that I share my experience with others, but I didn't want to until the whole process had completed. Which it did today. 

I'll post more if others are interested... 

propertyrental

Interested in the experience buying via a MMA.

Otherwise no.

And don't apprecialte the clickbait.

RHemmings

propertyrental said:

Interested in the experience buying via a MMA.

Otherwise no.

And don't apprecialte the clickbait.

I didn't buy through MMA, but what I want to point out is that those properties are still available if people want to make an offer on them...

youth_leader

So were you approached because you had viewed the property, the day after the auction? 

I sold at 'traditional' auction during lockdown so it was on line - neither of the bids on the day were anywhere near the 'guide price'.  The auctioneer rang me late that afternoon and said they'd be approaching all who had viewed.

theartfullodger

RHemmings said:

propertyrental said:

Interested in the experience buying via a MMA.

Otherwise no.

And don't apprecialte the clickbait.

I didn't buy through MMA, but what I want to point out is that those properties are still available if people want to make an offer on them...

Very interesting, hopefully a useful contribution to everyone's knowledge on these matters.

(Bought at auction, never having looked inside the place - simply drove past - in Scotland - Roup  and all that in Spring 2000.  Sold in 2023, overall a good purchase but children, do not do this at home... )

RHemmings

youth_leader said:

So were you approached because you had viewed the property, the day after the auction? 

I sold at 'traditional' auction during lockdown so it was on line - neither of the bids on the day were anywhere near the 'guide price'.  The auctioneer rang me late that afternoon and said they'd be approaching all who had viewed.

It was fully my idea and completely unprompted by the EA/auction group. I was interested in the property but not the method of sale. I prepared my email making my offer, sat there watching the auction finish with no bids, and then sent the email making the offer within seconds. 

I had properly viewed the property, and I had talked through buying the property with the auction group, but concluded that MMoA was not for me. 

To be honest, I had given up on making offers on properties until January, for personal reasons. I couldn't afford the properties that I really wanted. So, I thought I had nothing to lose making an offer in late October. 

Buying at auction is a risk, in my opinion. That includes MMoA. @theartfullodger - I'm glad it worked for you. 

I've started watching MMoA properties again. Just today I saw one with a considerably under market price starting price which had 27 watchers but the auction ended with no bids at all. I have suggested to my son that I buy and gift a property to him, but he says no.

Personally I think that the method I used is a good one, for various reasons. Including because: prices for MMoA properties are sometimes, even after adding the 'reservation fee', bargains. I had seen properties selling for real bargain prices, sometimes the starting price, but it was frustrating to me that those properties weren't available to me. So, ahead I went.

PS: Despite a successful purchase, I would say that I'm even less likely to buy by MMoA now than I was before starting the process. 

user1977

No reason why you can't, though I expect the EA contract means the vendor has to pay the extortionate fees out of the sale proceeds.

RHemmings

user1977 said:

No reason why you can't, though I expect the EA contract means the vendor has to pay the extortionate fees out of the sale proceeds.

Yes. But, I described my offer as if I was paying the fee. I'm not sure if that would make a difference, as I pay for the property and the fees come out of that. 

eddddy

So you said something like this to the seller (using made-up numbers)...

• I'm offering you £190k, and I'll pay your auction fees of £10k on completion (as long as completion occurs)

Instead of saying...

• I'm offering you £200k (and you'll have to pay your own auction fees of £10k on completion)

And I guess you expressed it that way because you thought it would 'sound better' to the seller - especially as the seller had probably been seduced into using MMoA because the auctioneer promised they would have no fees to pay.


I often suggest that people make offers like that on MMoA properties, it's great to hear that it worked for you.

(I suspect the biggest hurdle is 'aggressive' auctioneers who try to put buyers off doing that, because the auctioneers want their money up front.))

RHemmings

eddddy said:

So you said something like this to the seller (using made-up numbers)...

• I'm offering you £190k, and I'll pay your auction fees of £10k on completion (as long as completion occurs)

Instead of saying...

• I'm offering you £200k (and you'll have to pay your own auction fees of £10k on completion)

And you expressed it that way because you thought it would 'sound better' to the seller - especially as the seller had probably been seduced into using MMoA because the auctioneer promised they would have no fees to pay.

 

Yes. Effectively the former in different words. My offer was explicitly calculated to be the starting bid plus the fees, to be a total which was very much not a round number. I did it this way as the neighbours had told me what the sellers were prepared to accept, and after fees it would be exactly that. 

In the future if I do this again (not impossible) I might just offer a sum. I'm not sure that the way that I couched it made any difference. But, then on the other hand if the sellers had been promised no fees to pay, then maybe it would be better to put it that way. I only know what worked for me. 

youth_leader

I think my buyer, who had viewed and also had a L3 RCIS survey, was also employing your strategy at my 'traditional' auction.  I did very reluctantly accept his very low offer as my freedom was priceless , as well as his request for eight weeks to completion.  The auctioneer then rang to let me know he wouldn't pay the deposit until he'd put it past his underwriters' as he was getting a mortgage.  I had to wait four days to find out if he was going to exchange, it was stressful..