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Original poster

Modern method of Auction

17 replies

SHUNTY218 · 11/04/2024 08:03

I have had my house up for sale with the modern method of auction process for 3 months.
It has failed to go to auction due to lack of interest despite over 30 viewings and no offers have been made on it. The estate agent now seems to be just trying to bully people into making an offer without a genuine auction date.
I have given them notice of 21 days as I'm now completely fed up and i have gone past their 60 day exclusivity period.
My question is - I have been approached by a person known to me about selling it privately. They did go to view via the estate agent.
I have seen on other threads that you are unable to sell to someone that has viewed in this way for a further 12 months after your contract with MMOA has ended or you will be liable for the fees although I cant find this stated in any correspondence.
I dont understand how they can do this once the contract is over with them or how they would even know?
I have not known for a lot of the viewings, names of ppl just dates and times and am not involved in the viewing process as I don't live locally to the house.
Does anyone have any experience of this?

OP posts:
Geneticsbunny · 11/04/2024 10:00

I would never buy a house that was for sale by his method. There are loads of extra fees for the buyer which aren't obvious and I would be concerned about why the house wasnt being sold by the normal method. I.e. what was wrong with the house.

Churchview · 11/04/2024 10:35

The modern method of auction is a ridiculous process so costly and complicated for the buyer as to almost certainly put off everyone who would have bought the house if it was being sold in the usual way.

The person you know who wants to buy the house didn't want to go through the process. Will they be a decent buyer or might they try to drop the price at the last minute? Seems like they're already hedging their bets.

The details of your obligations will surely be in the contract.

schloss · 11/04/2024 10:43

If an agent has introduced a buyer and then you complete a private sale with the same buyer then I believe fees will be due to the agent, you would need to check your contract though.

The reason you have not sold is 99% of buyers will not, quite rightly, touch modern method of auction.

Either sell the property at a proper auction with a realistic guide price and reserve, or sell it via normal methods with a realistic lower end price.

Why did you choose to use MMoA?

Pixiedust1234 · 11/04/2024 10:50

Modern method of auction is not the same thing as traditional auction for a start. With MMOA the buyer has to pay the sellers costs and no normal sane person would do that.

Go to traditional auction if you need it sold quickly.

EDIT - I see i didn't answer your final question - read your contract as they are all different. You don't want to be sued for thousands later, and I'm sure they will.

KievLoverTwo · 11/04/2024 10:56

I have seen on other threads that you are unable to sell to someone that has viewed in this way for a further 12 months after your contract with MMOA has ended or you will be liable for the fees although I cant find this stated in any correspondence.

I dont understand how they can do this once the contract is over with them or how they would even know?

I really don't know how they do it or how they know either but if you have a read through the 1-star reviews of iamsold on Trustpilot, I believe they smother you in lawyers and make it virtually impossible for you not to pay up.

I'm so sorry you got sucked into this awful method. I hope you're able to sell it with little hassle in the future.

FriendlyNeighbourhoodAccountant · 11/04/2024 11:04

I assume they take the details of all viewers, and if they see your house has sold they can just wait until the land registry updates with the name of the buyer after completion. Then come to you for their money.

SareBear87 · 11/04/2024 11:06

As many others have said MMOA is horrific for the buyers. We've turned houses down as the extra fees are eye watering! We're not even considering MMOA houses anymore

If the contract doesn't state anything about introducing a buyer to you they'll find it hard to demand a payment from you.

Comefromaway · 11/04/2024 11:08

Same as others. When we were house hunting I didn't even bother to view any modern method of auction properties no matter how ideal they were.

AlohaRose · 11/04/2024 11:14

Why did you decide to sell your house in this way in the first place? Also, yes they most likely will find out who buys the house and come after you for the fees - don't do it!

KievLoverTwo · 11/04/2024 11:15

FriendlyNeighbourhoodAccountant · 11/04/2024 11:04

I assume they take the details of all viewers, and if they see your house has sold they can just wait until the land registry updates with the name of the buyer after completion. Then come to you for their money.

Urgh, imagine being the poor soul whose job it is to plug postcodes into the land registry every day to come down hard on people who have been conned into an MMA.

OP, get your buyer to change their name by deed poll and then change it back. I changed mine a few years ago for a mortgage and an 'official' solicitors document (which lenders insist on, despite not being legally binding in any way) cost me about £180.

x2 £180

Or a ton of MMA fees

I jest, but, would it do the job? :)

VenetiaHallisWellPosh · 11/04/2024 11:24

I am sorry you have got yourself mixed up in this OP. It's a total con. No advice, but, maybe speak to your solicitor for what to do next?

Alphabet1spaghetti2 · 11/04/2024 11:25

As a pp. we don’t even look at the photos of any property that mentions auction - traditional or modern, they are way to costly for a start as buyers.

NewFriendlyLadybird · 11/04/2024 12:39

Ask your solicitor. There have been court cases about this issue (though with conventional estate agents) and there was a judgement in 2018 in which the judge said that an ‘introduction to the property’ was not enough, and that a fee to the first EA was only payable if they had effected ‘an introduction to the sale’. That may be difficult to argue with a MMA, and I’m not sure you’d want to be a test case.

What fees would you owe the MMA EA? My understanding was that it was the buyer who paid the majority of auction fees. Check this, check your contract, and go over it carefully with a solicitor.

If there is a slightest chance that you owe them money they will find you. There are companies whose sole purpose is finding fees that could be owed to other companies.

hayless · 11/04/2024 15:10

I wouldn't go near a house sold by MMA. First, I wouldn't pay the insane fees that go with it. Second, I'd assume the seller was hiding something – serious structural issues, nightmare neighbours etc.

What was your reason for deciding to sell in this way?

Coldupnorth87 · 11/04/2024 15:14

I just watched a Phil Spencer YouTube video interviewing a guy about this & chortling on.

I was surprised as it is a total con, just moving selling fees to the buyer.

Coldupnorth87 · 11/04/2024 15:15

Bought & sold a lot of houses, won't even click on the listing if it was sold this way.

Papricat · 11/04/2024 22:32

Baught my house through MMA.... There are good deals to be had with more flexible timelines than traditional auctions. Just need to be clear as to why it is being sold through this channel and to have a good lawyer at hand. If it doesn't sell, it is likely due to too high guide price.

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