I bought a 'modern method of auction' property

Myci85

This is interesting to read, we've seen a few places we like but will never even consider buying through MMA. Can I ask who you sent your offer in to? And did you buy with a mortgage then or cash? How did buying that way differ to how it works through the 'normal' route?

_Penny_Dreadful

RHemmings said:

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. 

That sounds like a traditional auction rather than the modern auction method. With the modern auction method there isn’t actually an auction at an auction house with buyers making bids in real time at a single event.  The modern auction method happens entirely online and the auction lasts for 28+ days so it’s not something you can sit outside waiting to finish. 

AlexMac

I can’t be 4r53d to read the click bait above but, to waste your time..

my auction buy was in mid Dec, so the 28 day deadline spanned Christmas. I was trying to borrow the money.  My bank pulled their mortgage days before the deadline… 

oh and I was getting married on 30th Jan (so no pressure?). 

But “Dear Reader, I married her”…(get the austenian reference ?).  And bought the wreck. And got rid of the stepson (into the refurbished wreck). And made a 5h17load of dough on resale 3 years later … 

But which of you gives a peck?

RHemmings

Myci85 said:

This is interesting to read, we've seen a few places we like but will never even consider buying through MMA. Can I ask who you sent your offer in to? And did you buy with a mortgage then or cash? How did buying that way differ to how it works through the 'normal' route?

I sent my offer to the local estate agent who had conducted my viewing. But, they then re-routed it to the auction department who wanted me to buy it through MMA instead. But, I didn't want to. I bought with cash. As far as I am aware, once the purchase was on track, it proceeded as a normal private treaty sale, except that there were two groups of EAs involved. The local agents, and the (modern) auction company. I used the exact words 'private treaty' to be clear. 

RHemmings

AlexMac said:

I can’t be 4r53d to read the click bait above but, to waste your time..

my auction buy was in mid Dec, so the 28 day deadline spanned Christmas. I was trying to borrow the money.  My bank pulled their mortgage days before the deadline… 

oh and I was getting married on 30th Jan (so no pressure?). 

But “Dear Reader, I married her”…(get the austenian reference ?).  And bought the wreck. And got rid of the stepson (into the refurbished wreck). And made a 5h17load of dough on resale 3 years later … 

But which of you gives a peck?

I went as fast as I could really, and I got nowhere near the 28 day deadline. More like 95 days or so. And of course in a MMoA sale, the fee paid is just to reserve the property for the shorter time (56 days in total I think). I wonder how many MMoA sales don't complete within the required time. Maybe the MMoAs go faster, but I'm not sure how I could have gone faster. 

RHemmings

_Penny_Dreadful said:

RHemmings said:

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. 

That sounds like a traditional auction rather than the modern auction method. With the modern auction method there isn’t actually an auction at an auction house with buyers making bids in real time at a single event.  The modern auction method happens entirely online and the auction lasts for 28+ days so it’s not something you can sit outside waiting to finish. 

Definitely modern method of auction. I haven't named the company who were auctioning the property, but they are definitely MMoA and are online as you describe, not a traditional auction house. 

_Penny_Dreadful

RHemmings said:

_Penny_Dreadful said:

RHemmings said:

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. 

That sounds like a traditional auction rather than the modern auction method. With the modern auction method there isn’t actually an auction at an auction house with buyers making bids in real time at a single event.  The modern auction method happens entirely online and the auction lasts for 28+ days so it’s not something you can sit outside waiting to finish. 

Definitely modern method of auction. I haven't named the company who were auctioning the property, but they are definitely MMoA and are online as you describe, not a traditional auction house. 

Apologies, I assumed you were watching an auction at an auction house rather than online.  I'm not surprised there were no bids with the eye watering fees.  Glad it worked out for you.

RHemmings

_Penny_Dreadful said:

RHemmings said:

_Penny_Dreadful said:

RHemmings said:

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. 

That sounds like a traditional auction rather than the modern auction method. With the modern auction method there isn’t actually an auction at an auction house with buyers making bids in real time at a single event.  The modern auction method happens entirely online and the auction lasts for 28+ days so it’s not something you can sit outside waiting to finish. 

Definitely modern method of auction. I haven't named the company who were auctioning the property, but they are definitely MMoA and are online as you describe, not a traditional auction house. 

Apologies, I assumed you were watching an auction at an auction house rather than online.  I'm not surprised there were no bids with the eye watering fees.  Glad it worked out for you.

I feel that the real issue is the combination of the eye watering fees with the fact that the EA and the auction organisation have already received their fee when an auction is won.  That puts the buyer in a weak position for the ongoing purchase. When the auction company were trying to get me to go with the MMoA method, they did offer compromises such as a longer time to complete, but even then I wouldn't want to do that. 

london21

The fees are like been scammed.

Read the T&C carefully.

Also the one i saw no identifiction or deposit requested so anyone can bid even to bump the price. So the sellers can for example get their mate to bid as well. 

RHemmings

london21 said:

The fees are like been scammed.

Read the T&C carefully.

Also the one i saw no identifiction or deposit requested so anyone can bid even tyo bump the price. 

What do you mean by 'The fees are like been scammed'? They don't have access to my cards or accounts. EDIT: Do you mean 'The fees are like being scammed.'? 

For the MMoA auction platforms I'm familiar with, you have to have a card registered to bid, and the fees are taken automatically when someone wins an auction. Bidding to bump up the price would be a dangerous game. And, among the small numbers of auctions that actually result in a sale, many sell having only had one bid. I don't think there is much shill bidding. 

No fees were taken from me. Only cash through my solicitors, which was the expected amount.

NB: I have read the T&Cs carefully, for a number of the auction sites. There are often ... interesting things, and a recommendation to read them very carefully is good advice. But, in my case, I did. Note, by 'interesting things' I don't mean just the non-refundable reservation fee.