Residential Auction Market Commentary March 09

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Apparently they are here to 'shake up the auction market. We're not entirely sure exactly what needs shaking up though and our biggest worry is that they are over promising and are likely to under deliver. Normally as an auction buyer you don't pay anything bar a fee for the catalogue, but these guys intend on getting you to pay 10% of the property's price as a fee, leaving the banks that repossessed the property in the first place selling it for free.

Secondly they seem to be promoting auction as an easy three step system:-

1. Order a catalogue
2. Go to the auction
3. Buy the property

Experts will know it's not this easy at all! What about checking the legal pack carefully? What about getting a survey? Shouldn't you get your mortgage sorted first? Apparently you don't need to worry about these things as they state on their website:

"The greatest difference between a REDC auction and other auctions is that there will be an on-site mortgage broker offering very easy financing (on approved Credit)"

We would never recommend that any buyer liaises with a mortgage broker on the day, nor should you only consult one mortgage broker!

And buyer beware:-

1. You have to pay REDC 10% of the purchase price if your bid is successful PLUS VAT of 15% added to this fee!
2. In REDC's words "The buyer is responsible for the entire purchase price if they back out of the purchase."
3. Dates and times are VERY restricted to see the properties before auction. As a result it would be tough to visit a property, find you like it and then organise a surveyor to go around within 24 to 48 hours to check it thoroughly.

So if you do plan to 'pick up a bargain' it would have to be at least at a price that is 10% less than you would pay at an ordinary auction, so it needs to be a real bargain. It's also essential that you go prepared with your own finance already sorted; having paid a conveyancer to go through the legal pack and ask any questions AND make sure you have had the property carefully surveyed.

Alternatively, go to an ordinary auction which you can find through www.eigroup.co.uk !

For more market commentary on a national or local level:-
Contact Kate Faulkner on 07974 750562 or 0845 838 1763. To read more about Kate, please visit ABOUT US, see Kate on video and for media appearances, contact:

Sylvia Tidy-Harris
STH Management                    
Tel  +44 (0) 1530 263221
Mob  +44 (0) 7970 646872
Fax: +44 (0) 1530 264018

 

NALS Conference Chair 2016

Kate's Consumer Portal

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