What is Modern Method Auction?
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- čas přidán 23. 07. 2024
- Modern Method Auction is becoming a more and more popular way to sell your home and as a property investor I keep coming up against vendors wanting to sell their home with Modern Method Auction. Many property investor when they first start out see the word "Auction" and think BARGIN! But they don't know the true costs of buying a modern method auction property so this video is going to educate you ALL ABOUT Modern Method Auctions!
Make sure to subscribe to this channel and if you want to chat more then message me on instagram @JamieYorkAspire
Sounds like a scam for the buyer and a hard sell for the seller .As a buyer I really wouldn’t want the worry of the process going wrong and losing up to 5% no way hosay .Buying a property is stressful enough without this scam modern day rubbish auction.This will give estate agents a bad reputation and is not good for the industry as a whole.Thank you Jamie for your no BS content cool🙏🏼👍👍
Thanks mate. Appreciate it! I largely agree with you. I just don’t think it’s needed to be honest
Jamie, great content, the quality of your advice is top tier and the delivery has the right level of relatability. Being at the beginning of a BTL journey I find myself checking your channel daily for new videos. Myself and I'd imagine many other start-up BTL investors would love to see a video on the most efficient ways to force equity/value into a property. I saw a loosely relevant article by Natwest that quantified this i.e. a kitchen/bathroom/garden reno's cost/value ratio but couldnt draw much tangible info from it.
Great suggestion that!
Planning on bidding on my first MM Auction this weekend. Glad of the confirmation that my understanding of how it works is correct.
I have officially watched every single one of your videos. Your content is so interesting and your very straight talking which sets you apart from the saturated market of financial educators. Keep up the great efforts.
What a hero!
Awesome content Jamie, as always
Thank you!
Excellent points Jamie. Having just purchased via this method, another point I'd say was, having a solicitor who dragged their feet, and took more than three months to get us over the line. Next time we'd ask for references that they knew what they were doing.
Thankfully the 'auction house' was understanding, and also they just charged a flat fee.
Didn't know the percentage method was plus stamp duty, will be mindful of that in future!
Glad it was helpful then! good luck!
Thank you so so much this helped me a lot
Glad it helped!
Not sure if the rules changed since this video was made but I thought stamp duty is calculated based on the purchase price + reservation fee?
Reservation being charged based on purchase price + stamp duty fee doesn’t sound right.
Thanks Jamie for this video, I save same money!!! Thanks
You are so welcome!
Informative as ever......I have a couple of properties I’m looking at that are on Modern method , ......I don’t think they will realistically sell for more, or much less than others in the area in a straight forward sale......I shall wait and see.🤔🤔
Awesome :) Looks like you got good deals!
Thanks so so much.
You're welcome! Thanks for watching!
Most Ive looked at you pay £300 for legal pack + the 4.2%/£6k (which ever is higher ) reservation fee to the Auction house/estate agent ... If i pull out i lose the fees ...What happens if the seller backs out ... I get all my money back ??
Pattinson auctions are fee free for seller if buyer pulls out the seller gets 5% of the 10% deposit..
👍
Modern method auction can be cheap if you do your home work don’t forget to add your fees on after, this is where people get unstuck….I was looking at a one bed flat which I valued at 90k tops in auction or retail £125k, on a modern method this particular flat made £155k plus auction fees and associated costs for that kind of price you could have got yourself a 3 bed house in the same area in the East Midlands……don’t get carried away…..
Personally I would never bid on modern method of auction it’s a money making scheme for the estate agents as more & more people sell their houses themselves & bypass estate agents by the way of strike, doorsteps ect…..could save you loads in selling fees.
Exactly ALWAYS do your homework before anything!
So James - what do you recommend? And Why?
Will most people buying via a traditional auction be cash buyers?
Is there a possibility for you to do a video on purchasing properties through offshore companies (BVI) for high net worth individuals, and therefore the tax implications / benefits. Thanks 👍
Possibly!
Hi Jamie, commented on your last video but thought I’d drop in here too just in case you missed it :)
I was wondering if you could touch on investment repayment strategies?
what are the different ways I could pay an investor back? Are there better ways than others I.e long term/short term strategies? And if possible, could you touch on how dividends work if you partnered up with someone to form a limited company and purchased through that.
Thanks again for the content mate, keep it coming
Good suggestion. I'll add it to the list as a possible future videos :)
Nice 👍
Thanks ✌
Cool content
Glad you like the videos!
Do you have to pay reservation fee PLUS 10% deposit? Or is this deducted from the overall deposit?
Additional deposit!
I am returning to UK and had been puzzled by this and not even considering the Modern Auction method and I will be a cash buyer, but why should I pay the Auctioneer 5%?? Doesn't make sense. Also for me this leads it wide open to all sorts of things - seems it is very beneficial to the auctioneer if the property does not go through because they get to keep the 5% then if it goes up the spout they get to sell it again presumably and make another 5%. I am completely ignoring any property that is being advertised as being sold via modern method of auction.
Did you sell at auction throw Pattinson.
Iam considering selling my flat at auction with them. Looking at a lot of video to see if there are any hidden fees and came across your comment.
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
Im sorry to hear that! Auctions can go in your favour too! Its is a risk but can be worth it
Do you know when the reservation fee is met on modern method of auction
Usually on exchange of the property but each will do it differently
What happens if the solicitor doesn't complete in 56 days, they seem to be taking longer at the moment due to the amount of work
You need to find a better solicitor!
I’ve had 3 purchased this way in the last 3 months and all 3 have gone over the deadline and all 3 have gone through ok. It’s up to the vendor though
@@MDAPromotions Thanks
Alright so can someone help me with something.. Ive been told by a mortgage advisor that the reservation fee for modern method of auction can be added to the purchase price so that you dont have to stump this up in cash. Ive done a lot of research online and cant see anything that says anything about this so i dont really trust what i have been told!
Can someone help answer this question for me once and for all?
I honestly don't think it comes of the PP
@@JamieYork No I didn't believe so either, going with my gut instinct but thanks for clarifying Jamie!
Dissapointed a video like this has finally made it way into public domain; I recently bagged bargain of a lifetime in South Shields as people are scared of these type of actions, will be harder for me to do so next time-haha. Seriously though great content again lad 👍
Haha, sorry mate! 😆
I have placed highest bid on a property in the auction and found that the property is unmortagageble. I don't have enough funds to make the purcase. I haven't even paid tge reservation fee or the deposit yet. Can I het out of this?
You can but it'll cost ya
@@JamieYork how much can this cost me? What's the best way to get out of it?
Can't you arrange mortgage beforehand
You can but you need to be quick!
Can you bid under the asking price?
You can try 👍
I think cash buy is best for any auction even though that’s not always possible. I have recently purchased at a modern method with 6k reservation fee but overall worth it as I will flip this house getting a good amount of profit 🤞🏼
I will not use them, it offers nothing to the buyer, I have seen houses that would have matched my criteria. But hey there's plenty more houses on the market, and these properties stay on the market longer and sell for less at the cost of the vendor.
Good point!
Fees for buyers are now getting out of control at auctions. Fees of 4% plus stamp duty are not uncommon. Ten years ago it cost peanuts to buy at auctions. Auctions are now a bad way to buy a property.
Are you personally a fan of the modern method Jamie? Or do you think it’s one of the evils of the industry?
I can see 1 dislike from william h brown, he-he
hahahaha!
I really hate auctions, the way they advertise their properties is so deceptive and just purposely made in bad faith. Usually, it's just a picture of the front of the house and nothing else, no other pictures, no videos, nothing in the description about the state of the house, so the only way to learn more about the property is to arrange a viewing, which for me is unavailable cause I want to buy a house that's about 150 miles away from my current location. SO FRUSTRATING
It can be frustrating but being patience is key :)
MMA’s are a con, and need proper regulation.
They certain need more regulation in my opinion!
Really is, screws both buyer and seller. Estate agents love this because they do feck all but pocket a nice fee.
I am so annoyed. I left leaflets in an area i am interested in. The seller contacted me but listed through modern method auction and property is over £400k. Just crazy that I have the seller's contact details but has still gone through this scam estate agent and auction company. I am hoping this puts a lot of people off because now the auction fees 4.2%, stamp duty and the huge risk.
this process is for depressed and sad, lazy, wicked, and unhealthy . who even allowed this open day light scam? nice video Jamie