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Found 2 results

  1. Hi. I am interested to know peoples views on the Modern method Auction and specifically the fees. I am looking to purchase a property that is being marketed by the Modern Method of Auction. It is a cash purchase and I have offered £65k prior to the auction. The guide price is £70k. The estate agents legally have to present this offer to the vendor. However I have noticed the auction house state that the reservation fee of a minimum of £6000 plus vat or 4% of the purchase price (which ever is higher) is still payable even if the property is sold prior to the auction. These modern auction fees seem high anyway and it seems wrong that they can charge these fees as opposed to the usual 1.5% a seller would pay if the property does not go to auction.
  2. I am not sure if this is only happening in my area or if it is a national thing, but my local agents are starting to sell most of their properties via Modern Auction terms. It is one agent in particular, but a few of the others are starting to jump on the band-wagon. The properties are advertised in the same way, some get listed on an online auction and others are listed as going to a bi-monthly auction. The majority get sold prior. The key difference appears to be all the fees are payable by the purchasers, which are 5% + VAT at 20% with a minimum of £5000+VAT for all purchases under £100,000, so the 5% could easily end up being an extra 10-20% on top of the agreed purchase price. These fees aren't added to the purchase price, they are to be paid for in cash/cheque/debit card at the point an offer is agreed on top of the standard 10% deposit. Is this happening in any other areas?
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