Buying a Flat. Modern Method of Auction.

[KeithGreen]

Hi, I am trying to help my son buy a flat. I note that a number of properties are being sold by the modern method of auction. At first glance this seems to be a clever way of extracting more fees from an already expensive transaction, and adding more stress into the bargain.

I wonder if anyone has any further knowledge of this, and what the advantages and disadvantages are for a buyer.

TIA.

 

[pentel]

this seems to be a clever way of extracting more fees from an already expensive transaction, and adding more stress into the bargain

Correct!!!!

 

[DontAsk]

It's a con to get the purchaser to pay a fee as well as the vendor.

As far as I can tell, it's a bit like an eBay auction with the "make me an offer" option except the ability to accept offers continues even after bids are received.

 

[IanSuth]

often auctions remove some of the options to duck out after survey etc - with a flat i would be very wary of having had a chance to correctly look at all the small print re maintenance charges, leasehold fees and cladding etc issues

 

[thetiger2015]

The fees can add up - because they say it takes longer to process and requires more work from the agents to get the sale. Not sure how true that is.

We put a property on the market a few years ago, it needed some work, so the agent suggested putting it on auction and they'd handle everything. The price they suggested was 30k less than what we actually sold it for in the usual way, glad we didn't bother with their auction thingy, it just seems like a way for the agents to take full control and ramp up their fees.

May be better to look at actual property auctions, through real auctioneers. I've seen some decent deals recently.

 

[KeithGreen]

Thanks everyone. I've done some more research and it seems for a buyer there is very little upside to this. Nor much for the seller if they end up with less than market value. But the agent gets to share a 4.5% fee with the auction company.

 

[ethical PR]

Hi, I am trying to help my son buy a flat. I note that a number of properties are being sold by the modern method of auction. At first glance this seems to be a clever way of extracting more fees from an already expensive transaction, and adding more stress into the bargain.

I wonder if anyone has any further knowledge of this, and what the advantages and disadvantages are for a buyer.

TIA.

Why does he want to buy by auction? Does he have the capital to complete within the timescales ?

 

[KeithGreen]

That's my point. He doesn't want to buy by auction. But a number of properties are being sold this way.

The responses here confirm my fears about this.

 

[DanteMosley]

In my view, one of the good things about this auction style is that the bidding happens online. This way, you can easily see what others are bidding, so you always know your position in the race for the property.