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Traditional or Modern method of auction for this property

Tradtional or modern auction. What would you choose?

Situation: 
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.

Comments

  • FreeBear
    FreeBear Posts: 14,268
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    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.
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  • Scotbot
    Scotbot Posts: 1,415
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    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
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    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
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    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
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    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
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  • ben5053
    ben5053 Posts: 13
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    Thanks All, think we are going to go with the traditional Auction. 
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