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Flat going for AUCTION help please

(24 Posts)
RTKangaMummy Tue 08-Feb-05 23:56:34

A very long complicated story but

DH aunt's flat is now going to be sold at auction.

They are recommending a guide price between X and Y with a reserve of Y

It was valued at Y + £20,000 as the top value

in Estate agent it is up for Y + £10,000

Now we think it should be sold for Y + £5,000 as the reserve

So therefore halfway between Y and EA price.

What do you think?

Please anything at all would help


Gwenick Wed 09-Feb-05 00:00:14

ermm sorry can't help - hopeless at maths so you've lose me just on the equations - hope someone else can help

RTKangaMummy Wed 09-Feb-05 00:00:20

BTW we are being told that if there is too much of a difference between X and Y and the reserve

it will be a problem with trading standards

Which I think would only happen if the reserve was set at alot more than the original asking price

Or am I wrong?

Has anyone been to an auction for a house or flat before?

Do they sell beyond the price very often?

RTKangaMummy Wed 09-Feb-05 00:03:31

ok to make it simple

guide price is between

50 and 60

with a reserve of 60

but it had asking price of 70 with estate agents

so do you think a reserve of 65 is fair?

Is that better?

Gwenick Wed 09-Feb-05 00:06:14

AHA - I understand now......I think generally houses do sell for less at Auction than they would at the estate agents so it 'could' be risking it (not selling that is) if the reserve was closer to the estate agent price. Don't know about the ins and outs of the legalities though (PS thanks for putting it in 'english' for me what will I be like helping my boys with maths homework when they're at school LOL)

RTKangaMummy Wed 09-Feb-05 00:18:39

Thanks Gwenick

RTKangaMummy Wed 09-Feb-05 09:06:22

bumpity bump please

ks Wed 09-Feb-05 09:39:54

Message withdrawn

RTKangaMummy Wed 09-Feb-05 09:45:17

KS because she died and it has been up for sale with hopeless estate agent, since summer 2004ish

we have been told that it has to go to auction to be sold

we don't really have any say in it [Legally]

solicitors are exectutors

We are very unhappy about it but am loosing patience with EA and solitictors.

That is the story in very simple terms

ks Wed 09-Feb-05 09:51:55

Message withdrawn

RTKangaMummy Wed 09-Feb-05 10:01:48

yes they told us something about charges but we don't have any choice

10% is huge though hope its not that much

+ the EA gets a % as well

and the buyer has to pay £250 to auction place as well

ks Wed 09-Feb-05 10:09:03

Message withdrawn

RTKangaMummy Wed 09-Feb-05 10:16:57

oke doke will do

Has anyone put a property into an auction or bought from one?

RTKangaMummy Wed 09-Feb-05 13:57:00

anybody help please?

bran Wed 09-Feb-05 14:03:59

Why does the EA get a fee if it's going to auction? If the EA has a sole agency agreement that should be cancelled before the flat is sold at auction.

RTKangaMummy Wed 09-Feb-05 14:12:21

bran wow is that the law?

our fees are in 2 elements firstly a non returnable contribution of £350 + commisssion of 3% of the sake price. With VAT on top

In this particular instance we will, of course, be acting with you as joint actioneers and you will receive 50% of the commission received

The above are quotes from the letter between auction and EA

I really do note like this EA but we are powerless

Does it sound like a fiddle to you?

EA has not tried hard at all to sell the flat

RTKangaMummy Wed 09-Feb-05 14:14:04

the auction place wrote the letter ##solicitor passed it on to us

asking for approval

ks Wed 09-Feb-05 14:16:18

Message withdrawn

RTKangaMummy Wed 09-Feb-05 14:17:36

brill thanks will do

have 2 go out now


bran Wed 09-Feb-05 15:04:53

I must sound like an authority figure , no it's not the law RTKM. Often what happens is that an estate agent will get sole agency, meaning that they are the only ones who will be marketing the property. If the property sells, but not through them, while the sole agency agreement is in place they will usually still claim their fee. However most agreements with estate agents (sole agency or otherwise) will have a clause that allows either side to terminate the agreement after a certain time, usually 8 weeks, if the property hasn't sold. So I'm just wondering why the executors haven't cancelled the agreement with the estate agent know that it will be going to auction.

Having said that it sounds as though the auctioneers are sharing their commission with the estate agents voluntarily, perhaps they are using their marketing material or something, so it probably doesn't make much difference to your aunt's estate either way. 3% sounds fair enough to me, although I haven't ever bought or sold at auction.

The good thing about an auction is that if it is sold the whole thing will go through very quickly as there is quite a short time between the auction and when the buyer has to pay the balance owed.

Prufrock Wed 09-Feb-05 19:26:05

Message withdrawn

RTKangaMummy Wed 09-Feb-05 19:38:09

I have no idea

But the solicitors and EA are all driving us up the wall

EA doesn't seem to want to do anything with it and never has done

I think they just want to be rid of it and us

Most of the estate goes to charity and we think that they have all been immoral in the way they charge for needless things

They always insist on phoning the mobile instead of the house so we get a call to the mobile while we are in house and DH says that he will ring them back straight away but no they continue on mobile and then charge through the roof.

They have the house phone number FFS

Prufrock Wed 09-Feb-05 21:22:59

It might be worth contacting somebody at the charity to say that you are not happy with the way the executors are acting. As there is no real client they seem to be taking the p* a bit

RTKangaMummy Wed 09-Feb-05 21:31:13

I'll talk to DH when he comes in later


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