Modern Method of Auction? I don’t get it.

Modern Method of Auction? I don’t get it.

14:25 PM, 23rd September 2014, About 8 years ago 25

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More and more sales are being conducted by what is termed “Modern Method of Auction”.

It is sold as a buyer friendly method of purchase but from what I can see, a non refundable reservation fee of 3.5% subject to a minimum of £5,000 plus VAT needs to be placed which then “secures” the transaction and takes the property off the market. Other than that it basically looks like a normal estate agent transaction. The terms go on to grant 28 days to exchange contract and then a further 28 days to complete. That is pretty standard anyway and unlike traditional auctions I assume these dates are arbitrary and unenforceable?Modern Method of Auction

As far as I can see this simply looks like the estate agent fees are passed from the vendor to buyer. When looking closer at some of these deals, at best one bid is in place but for the vast majority no bids at all are in place.

Knowing a reservation fee of £5,000 needs to be paid would surely lead to a lower offer to account for this.

In that case who benefits?

Regards

Onslow Clough



Comments

Mark Alexander - Founder of Property118 View Profile

21:35 PM, 24th September 2014, About 8 years ago

Reply to the comment left by "Onslow Clough" at "24/09/2014 - 21:33":

Perhaps you ought to consider investing in mentorship?

Please see >>> http://www.property118.com/consultancy-mark-alexander/61522/
.

Onslow Clough

9:03 AM, 25th September 2014, About 8 years ago

Reply to the comment left by "Mark Alexander" at "24/09/2014 - 21:35":

Thanks Mark. Hopefully i'll be in a position to buy early next year, so i'll give it serious consideration.

Reader

20:32 PM, 28th September 2014, About 8 years ago

Quite interesting how the agents try to raise their own revenue stream. However, if you wish to secure the chance to purchase for a specific period of time, you could buy and the seller could sell you an Option To Purchase.
These are not used too often but might be worth you and your advisers investigating.

You GAVEL

22:10 PM, 3rd May 2015, About 7 years ago

Really Interesting comments. In my opinion the auction property game should be fair for both buyers and sellers. I don't agree either with the traditional method. From the other side, the estate agents - spoiled landlords - and ruined the game. They might advertise the phrase "Modern Method" as a way to attract more buyers. However, their strategy is incomplete and expensive.

"Buying and Selling Property" should be fair and straightforward. In that way, business secures buyers. The pie is big but and difficult for first time buyers. Perhaps, thats the reason that many business used the "Modern method".

I have investda lot of time and money to R&D and planning for the property auctions.
I strongly believe, that property sellers need their place to sell free and pay only a success fee. The same applies to buyers. To bid and pay a fee only on success. 0.50%-0.50%

Everyone invites landlords for free to build up their inventory but who thought buyers ? To be a landlord or property investor etc, you need buyers and you need good buyers.

The idea of our business was for a fair game between the buyers and sellers to buy properties online via auction or buy now. It is a traditional method with changes who benefit the business who offer the services. The huge difference is that we don't shout the modernised way but is a strategy with benefits for buyer and sellers in a more fairness environment. I know the complexities and why they charge upfront fees. Instead of getting your trust you are more cautious.

If someone holds property auction in a room and they call it "Modern" then is not. If for example yougavel mention modern method where everything happens virtually from start to the end then it might sound good, but again the main point is how you sell and how they buy:

"Fairness with Honesty=Easy Profits" / Either Buyers or Sellers need any high fees, hidden fees or upfront fees.

Nourdine Streather

14:43 PM, 23rd October 2015, About 7 years ago

The Autumn house auction has begun for buyers who are prepared to do some DIY. There are many opportunities for a first time owner or buy to let investor to get their hands on some cheap property. Always make sure you inspect the property with a surveyor and builder to make sure its functional followed a ready deposit. The first property this month includes a two-storey terrace house with a garden in Hither Green, with a guide price of £250,000. http://realestateforyouallc.ipage.com/london-home-under-the-hammer/

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