First time buyer here. I saw this popping up a lot while on the hunt for a home and wanted some clarity. This video was excellent for that. Thanks. I'm steering clear of these auctions.
Good job, my question is, in normal auction after paying the 10% deposit to the auction house, how much deposit do you need to process the bridging loan?
Good video, well explained. I find about 1 in 10 properties here are the Modern Method of Auction and I too felt like it was a way for estate agents to make extra money. It seems to disadvantage the buyer and uses buyer fear ie. I saw one house ad that said 'this fee will take the house off the market and prevent gazumping!' The only benefit for the buyer seems to be the price but the rest of it feels stressful ie fees, deadlines and timescales all working against the buyer. I think I'm going to start putting in some lower offers for houses not using this method instead.
It's now 6%. Solicitors more than double their fees if you are buying through MMOA. The seller can pull out at any time leaving the buyer out of pocket. You're then forced to sue the seller for your costs using a no-win no-fee parasite who will take 50% IF you win, which you probably won't as no law has been broken. DO NOT ENTERTAIN BUYING ANY PROPERTY VIA MMOA. And, the seller is tied into this contract and has to pay the full fee to get out of it, or a reduced fee after X amount of time. Nobody wins except the auctioneer. He is laughing at you. You have been warned.
In an auction it will mostly be old property that needs work. If you have been educated on property and have someone to help then go for auction. If not Id suggest doing a simple buy to let to get started.
Thank you for your helpful videos. We have a two bedroom ground floor flat in Hull. Completely refurbished with new fitted bathroom aimed at accommodating elderly or for people with disabilities. Had two offers but when their lenders value it it comes in under value and therefore they have not been able to get a mortgage. Was recommended to us that we try modern method of auction. What are your thoughts please.
Ive never seen it work, you commit to it for a long time and buyers hate it. If you want to sell it fast I would go to a normal auction. However if you can wait for a good price just use a normal estate agent.
Hi, I've seen a property I'm wanting to bid on. I've never done this before so nervous of fees and if there's something seriously wrong with it... So I'm thinking if putting in a silly offer and going with fate! But, can i bid below asking price?
@@propertyaccelerator I don't have time unless they extend the bidding. It's saying it needs a complete renovation but I'm hoping I can take time doing it
If a property doesn't sell 3 times what happens? How long is a vendor tied into the auction contract ? I want to buy the house ourside the auction without a nonsensical 6k for nothing 😩 i already made the mistake of viewing it so they know I'm interested.
Hey Claire it depends on the agent they all have different contracts. You could try sending a letter to the address direct and see if you can chat direct with owner. If they dont live there you can find out who owns it and where they live on land registry.
@charleneo6865 No they are tied into a contract with the auction house. On principle now I will not buy a house from an auction. Absolutely not giving £6,600 to anyone for nothing.
Hi, I am selling my late mums house & after a buyer pulled out last minute, my estate agents have suggested this as a method of selling the house. I am not to brainy on this side of things though I’ve found a little use out of it. It seems like the estate agents would benefit more than the buyer and seller maybe!? I am still unsure what to do
Hey Billy firstly I am really sorry for your loss, I know dealing with property after something like that can be very stressful. Modern Method really favours the Estate Agent, they charge fees of around £5000 to the buyer. That saves you paying the fees, however the bigger problem is it puts the buyers. Most buyers avoid these types of deals so you will get a lot less for the house. Drop me a message on my Instagram here instagram.com/jamesnicholsonproperty/ We might be able to buy it off you for a better price.
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I love your no nonsense approach to your videos. Full of only useful information and no faffing around. Just got a new subscriber 👍🏾
Thanks and welcome
First time buyer here. I saw this popping up a lot while on the hunt for a home and wanted some clarity. This video was excellent for that. Thanks. I'm steering clear of these auctions.
Glad it was helpful!
Good job,
my question is, in normal auction after paying the 10% deposit to the auction house, how much deposit do you need to process the bridging loan?
Normally they want 25% for a bridge, that would be less the 10% you paid so an extra 15% on top of your 10%
Good video, well explained. I find about 1 in 10 properties here are the Modern Method of Auction and I too felt like it was a way for estate agents to make extra money. It seems to disadvantage the buyer and uses buyer fear ie. I saw one house ad that said 'this fee will take the house off the market and prevent gazumping!' The only benefit for the buyer seems to be the price but the rest of it feels stressful ie fees, deadlines and timescales all working against the buyer. I think I'm going to start putting in some lower offers for houses not using this method instead.
Thanks
It's now 6%. Solicitors more than double their fees if you are buying through MMOA. The seller can pull out at any time leaving the buyer out of pocket. You're then forced to sue the seller for your costs using a no-win no-fee parasite who will take 50% IF you win, which you probably won't as no law has been broken. DO NOT ENTERTAIN BUYING ANY PROPERTY VIA MMOA. And, the seller is tied into this contract and has to pay the full fee to get out of it, or a reduced fee after X amount of time. Nobody wins except the auctioneer. He is laughing at you. You have been warned.
👍
I bid for a property which is in modern method of auction.Can I withdraw my bid before ending the auction.
Do I have to pay the reservation fee or any penalty.Still 6 days left to end of auction
I dont know how you can do that you need to speak to auction house.
For a first time investor, do you advise he go for auction property either old or new? Also what is the financial implications?
In an auction it will mostly be old property that needs work. If you have been educated on property and have someone to help then go for auction. If not Id suggest doing a simple buy to let to get started.
Why are the fees so high. Sounds like a rip off.
Yeah its not a style of buying I like, I think it impacts the seller more as less people look at their property.
Ive just found out the house I've won a bid on is 'unregistered leasehold' .. do i have any options? (Ive paid the auction fee😢) Thanks
Call a solicitor in the morning you need them on this fast.
@@propertyaccelerator why? The auction team seem to think it can be sorted?
Thank you for your helpful videos. We have a two bedroom ground floor flat in Hull. Completely refurbished with new fitted bathroom aimed at accommodating elderly or for people with disabilities. Had two offers but when their lenders value it it comes in under value and therefore they have not been able to get a mortgage. Was recommended to us that we try modern method of auction. What are your thoughts please.
Ive never seen it work, you commit to it for a long time and buyers hate it. If you want to sell it fast I would go to a normal auction. However if you can wait for a good price just use a normal estate agent.
@@propertyaccelerator Thank you for your reply and advice.
Hi, I've seen a property I'm wanting to bid on. I've never done this before so nervous of fees and if there's something seriously wrong with it... So I'm thinking if putting in a silly offer and going with fate! But, can i bid below asking price?
You can still view and get a surveyor to look at the property before you bid.
@@propertyaccelerator I don't have time unless they extend the bidding. It's saying it needs a complete renovation but I'm hoping I can take time doing it
Good video
Glad you enjoyed
If a property doesn't sell 3 times what happens? How long is a vendor tied into the auction contract ? I want to buy the house ourside the auction without a nonsensical 6k for nothing 😩 i already made the mistake of viewing it so they know I'm interested.
Hey Claire it depends on the agent they all have different contracts. You could try sending a letter to the address direct and see if you can chat direct with owner. If they dont live there you can find out who owns it and where they live on land registry.
@@propertyaccelerator Thanks for your reply it is with iamsold. I'm really not a fan of this modern method of scamming.
@@claireclaire238 how did it all go? Was vendor able to sell outside of the auction?
@@charleneo6865 Didn't even try. I just don't entertain auctions scamming £6,600 for absolutely nothing. SCAM.
@charleneo6865 No they are tied into a contract with the auction house.
On principle now I will not buy a house from an auction. Absolutely not giving £6,600 to anyone for nothing.
Hi, I am selling my late mums house & after a buyer pulled out last minute, my estate agents have suggested this as a method of selling the house. I am not to brainy on this side of things though I’ve found a little use out of it. It seems like the estate agents would benefit more than the buyer and seller maybe!? I am still unsure what to do
Hey Billy firstly I am really sorry for your loss, I know dealing with property after something like that can be very stressful. Modern Method really favours the Estate Agent, they charge fees of around £5000 to the buyer. That saves you paying the fees, however the bigger problem is it puts the buyers. Most buyers avoid these types of deals so you will get a lot less for the house. Drop me a message on my Instagram here instagram.com/jamesnicholsonproperty/ We might be able to buy it off you for a better price.