Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.

Traditional or Modern method of auction for this property

Tradtional or modern auction. What would you choose?

1. I'm selling a property on behalf of my mum. We have just wasted a year going back and forth with a traditional sale. 
 2. It is a peice of land (140m2) with a small hut (kitchenet + toilet probably 25m2 at most) on it in a popular seaside holiday village in Wales. Access is via a shared footpath with other cottages, it's 7 minutes walk to a lovely beach and pub. 
3. The property pays council tax (need to reclaim 10+ years) but has no legal status as a dwelling under the town and country planning act. 
4. The utilities were previously through another house but were cut off some years ago (foul drainage still intact). 
5. The property is worth somewhere in between 50-100k (very much dependant on the buyers vision and planned use). 
6. For tradtional auction I'm probably looking at 3k in solicitors and estate agent fees. Somewhere like iamsold might charge £500 for modern method.

I was tetering towards the modern method due to lower costs but I'm concerned it just gives the buyer more time to mull over the issues and pull out. With traditional it seems like it would all be done quickly but I'd be paying higher fees and potentially getting less for the property. What would you do? Its going towards care home fees and I'm hoping with traditional there is more chance of 2 people getting carried away and ramping the price up but its a risk.

Thanks for the help.

 P.s its not mortguagable.


  • FreeBear
    FreeBear Posts: 14,268
    First Anniversary First Post Name Dropper Photogenic
    The only winners with a MMoA is the agent.
    If you are going to auction, use the traditional one, and then everyone knows where they stand when the hammer falls.
    Her courage will change the world.

    Treasure the moments that you have. Savour them for as long as you can for they will never come back again.
  • Scotbot
    Scotbot Posts: 1,415
    First Anniversary First Post Name Dropper
    Forget the modern method, they charge massive fees to the buyer. Usually a minimum of 6K which is non refundable if something goes wrong. They supposedly offer buyers time to sort out a mortgage but only 56 days and that is often not enough.

    It sounds however like this is not a mortgageble dwelling so buyers will be cash buyers. No cash buyer is daft enough to stump up the 6k fee
  • NameUnavailable
    NameUnavailable Posts: 2,786
    First Anniversary First Post Name Dropper
    This is absolutely the kind or property that should be sold at auction (traditional) to a cash buyer/developer.

    When the hammer falls the exchange takes place and completion can be as soon as you want thereafter (assuming you have a bid at least at the reserve price if you set one).

    Modern method is IMHO very confusing for buyers, and many will steer clear, and serious cash/developer buyers will just go to the proper auctions.

    As for fees you could put in the special conditions of sale that the buyer must pay X towards your fees (best not to try to lump it all on them or the bids will possibly be lower.
  • RHemmings
    RHemmings Posts: 3,205
    Name Dropper Combo Breaker First Post First Anniversary
    edited 5 February at 6:13PM
    Background: I spent a lot of time watching properties on Modern Method of Auction sites to see how well they sold, and am still doing so. Eventually I bought a property up for sale by MMoA, but as a condition of my offer bought by private treaty, not MMoA. 

    The majority of properties I see on MMoA sites go up for auction time and time again with no bids, even though the starting bid is low compared to market value. 

    Thinking as a buyer I would  not want to buy a property by MMoA.

    FreeBear said:
    The only winners with a MMoA is the agent.

    I disagree. There are bargains to be had for people who find a way to buy one of those properties. 
  • diggingdude
    diggingdude Posts: 2,445
    First Anniversary Name Dropper Photogenic First Post
    2 properties I was interested in were up to be sold by modern auction late last year. Seems to be a big push for it round here. Neither sold and I personally wouldn't touch them due to the costs for me
    An answer isn't spam just because you don't like it......
  • ben5053
    ben5053 Posts: 13
    First Post First Anniversary Combo Breaker
    Thanks All, think we are going to go with the traditional Auction. 
Meet your Ambassadors


  • All Categories
  • 341.8K Banking & Borrowing
  • 249.7K Reduce Debt & Boost Income
  • 449.2K Spending & Discounts
  • 234K Work, Benefits & Business
  • 606.1K Mortgages, Homes & Bills
  • 172.5K Life & Family
  • 246.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards