Selling using modern method of auction

RHemmings

Mattb79 said:

CaptainWales said:

You say that any buyer would run a mile, but wouldnt they still bid but taking into account the additional fees? i.e people would still want to buy. i would get a slightly lower price but then ive saved on selling costs. Or am i missing something?

You’re missing the fact that the buyers fee is much bigger than a normal estate agent fee would be. Typically around 4%.

So on a £500k house buyers would bid £20k less to take account of the fee. Meanwhile you’d be saving the normal estate agent fee of around 1% -£5000. 

Overall you’d be £15k down on the deal.

I agree with what you say. But, I think from a buyer's point of view,  that the MMoA reservation fee is paid on winning an auction, and is non-refundable is the worst part of it. Many things can go wrong (e.g. bad survey) between winning the auction and completing on the house. With the buyer potentially losing tens of thousands of pounds should completion not happen.

Hence the situation is much worse than for a standard estate agent fee where it is paid on successful completion. And, reducing the offer to account for the fees doesn't account for that risk.  

jandance

We've tried selling our property through estate agents without success.  It's a second property holiday home which we now can't afford due to double council tax bills in North Yorkshire from April for second home owners.  The market has fallen considerably already and our small flat with a fabulous sea view is not ideal for long term rentals.  Not able to rent out as a holiday let either.  Any suggestions.  We were looking at modern auction route but not sure now.

Albermarle

jandance said:

We've tried selling our property through estate agents without success.  It's a second property holiday home which we now can't afford due to double council tax bills in North Yorkshire from April for second home owners.  The market has fallen considerably already and our small flat with a fabulous sea view is not ideal for long term rentals.  Not able to rent out as a holiday let either.  Any suggestions.  We were looking at modern auction route but not sure now.

Better to start your own new thread, rather than tacking your question on to an old thread. 

RHemmings

jandance said:

We've tried selling our property through estate agents without success.  It's a second property holiday home which we now can't afford due to double council tax bills in North Yorkshire from April for second home owners.  The market has fallen considerably already and our small flat with a fabulous sea view is not ideal for long term rentals.  Not able to rent out as a holiday let either.  Any suggestions.  We were looking at modern auction route but not sure now.

I strongly recommend you go onto MMoA auction sites, and track a whole lot of houses and see what happens to them. It's not uncommon for even superficially 'competitively' priced houses to fail to sell by MMoA. 

My belief is that MMoA functions to condition sellers down in price. As the house usually goes on at a price significantly less than it was on the open market. Then fails to sell. Repeatedly.