Selling via auction?

Baldytyke88

A friend has done the probate on his father's estate and he is selling the house. I was surprised when the house was listed for auction, thinking it would get a lower price.

But Google seems to think it's normal to sell a house via auction after probate. The house does need updating and a little work, but is it just being lazy, selling via auction? Its value is around £250k so nothing out of the ordinary.

maman

When my elderly neighbour died, her sons did exactly this. Neither wanted to live in the house, they didn't want to be landlords and weren't really up for the work needed to bring it up to scratch. They also weren't really that desperate for the extra money they potentially could have made.

The house was sold at auction to a developer.

Baldytyke88

https://forums.moneysavingexpert.com/discussion/comment/81948144#Comment_81948144

The website lists a starting price, but not a date when the auction ends. When someone bids over the starting price, is a live price shown on the website?

I am guessing the auction will last a month, or less?

user1977

Google seems to think it's normal to sell a house via auction after probate

Not "normal", the vast majority are marketed in the standard way. Might make sense if it's so dilapidated to be unmortgageable, or (in some sort of contentious executry) the executors want transparency about the property achieving the best price it can.

Though that's assuming traditional auctions, you seem to be talking about the "modern method of auction" which is a far less transparent and undesirable beast.

daveyjp

This appears not to be a normal auction and the "modern method" is one which should be avoided.

In an auction the property is listed for sale on a certain date, bids are made and it is sold (or not if reserve not met) the same day with completion about a month later.

If this isn't the auction being used cancel the contract and sell it the normal way. Valuation, board in the garden, agent listing on websites.

eddddy

daveyjp said

If this isn't the auction being used cancel the contract and sell it the normal way.

It sounds like the OP's friend has already entered into the contract. So cancelling might be an issue.

• If the friend signed the contract more than 14 days ago, there's almost certainly no scope to cancel it.

• If the friend signed the contract less than 14 days ago, they should be able to cancel - but the auctioneer is can demand that their costs are paid
• That's likely to include the costs of photography, writing-up the description, listing the property for auction etc. That could be quite a few hundred pounds,

• If the auctioneer has already 'introduced' some prospective buyers within those 14 days and one of them proceeds to purchase, that could be even more complicated. The auctioneer might then claim that the contract was completed, before the attempted cancellation
• The friend would then have to pay the auctioneer all the fees that the buyer was supposed to pay. (Which might be £6k or 4.5% of the sale price or more.)

Baldytyke88

https://forums.moneysavingexpert.com/discussion/comment/81948220#Comment_81948220

https://www.reedsrains.co.uk/property/semi-detached-house-for-sale-rein-road-tingley-wf3-id-mor250446?searchId=ab2208acaef8c799311acd094333444a&offset=19

It was occupied a couple of years ago. My hope is that it will reach £250k, Zoopla's starting estimate is £270k

Myci85

Yep this is modern method auction, which puts a lot of people off. I would search threads on here on the subject to get an idea of the downfalls of this auction method.

Albermarle

Modern Method Of Auction Explained

daveyjp

£350 + VAT to access the property info pack which has to be paid before a bid is accepted. Mugs game.

user1977

https://forums.moneysavingexpert.com/discussion/comment/81948887#Comment_81948887

no, looks like only the actual buyer pays that. So similar to a standard auction where you’re typically paying for the searches etc.