Can't sell

wot_a_life

We have had our house valued at £199,950 and we owe approximately £169,000 on the mortgage, we also have a charging order on it of 2k

We can't afford to sell through an estate agent and have put a thread up about possible bankruptcy.

Would it cost us the same or cheaper to auction the property before it's repossesed?

moneysavinmonkey

i've never sold a house before so sorry if this is an ignorant question buy why can't you afford to sell - i though estate agents fees were only due upon completition of the sale? You seem to have enough equity

maninthestreet

How much is it going to cost to auction the house (don't auction houses charge the seller a percentage fee of the sale price achieved)? If you can't afford to sell using an EA, how can you afford to sell via an auction?

mandi

There ar other ways to sell you house without an Estate Agent Wot ..

Have you thought about an open day , private advertising or advertising on the net .. Personally as an EA I think we charge to much to sell houses anyway ...


Mandi

wot_a_life

Tha is what I was asking maninthestreet, is it cheaper or dearer to auction a property than to use an estate agency for a private sale?

lol mandi!! We had a valuation from your Move, who told us it would cost between 7 and 9k to sell through them

silvercar

wot_a_life wrote: »

lol mandi!! We had a valuation from your Move, who told us it would cost between 7 and 9k to sell through them

EA fees are from 1%-2% max + VAT, payable on completion ie out of the sale proceeds. I suggest you try a different agent.

Jorgan_2

Thats approx 4% of the selling price, you may have miss understood what they had said. EA fees should be in the region of 1-1.5% + VAT, so £2-3.5k approx.

People buy at auction because they want to get a bargain, its not uncommon for properties to sell at £40-60k below there market value.

wot_a_life

Not an ignorant question moneysavinmonkey.

We can't afford the mortgage and have defaulted again on the re-payments. The lender issued repossesion but we managed to get it adjorned on the agreement that we pay an extra £105 on top of our monthly repayments.

We can't pay it, OH spoke to the mortgage lender today and altho they were sympathetic, they said it would have to go back to court and we should get a date in the next couple of weeks.

OH is in the building trade and hasn't been able to find steady work for many months now, he gets the odd job here and there, but not enough for the mortgage repayments, we are living hand to mouth and sinking deeper and deeper into debt, so the first thought is.........sell the house!?

If we can't sell the house and find rented accomadation, then it will be repossessed

teabelly

If you get repossessed then the mortgage co will take off all their fees first before you had any balance (if any ) from selling the house. They'll pay estate agent or auction fees so you may not be better off. There are some EAs that offer fixed fee sales. Some do it for as little as a few hundred quid. Try one of those and stick it on at £185k and hopefully it will shift and leave you some money left over for a rental deposit.

If you need to sell without fees for EAs or HIPs then one of those buy your house quick people might be worth contacting. Some are sharks and they will offer you much less than market value and less than what an estate agent will obtain. But decent ones will buy the house from you before you get repossessed and you can consider whether to do the rent back with them so you can stay where you are. The latter is more risky as you depend on them to be solvent and remain so.

Different auction houses charge different fees so it is worth looking around. Also you can set the reserve to the minimum you need to pay everything off so you can at least make sure if it sells everything is paid off.