Auctioneer's contracts

MrThrifty

Am thinking of putting a property on the market but know directly of someone local who would be very interested in buying it. Rather than selling it directly to them immediately, I would prefer to put it formally on the market through an auctioneer just to establish whether there are other interested people and also a possible selling price. Then, if there were no better offers from people the auctioneer had shown the property to after a month or two, I would go ahead and sell to the local person. Obviously though, I would sell through the auctioneer if they found someone willing to pay a higher price (obviously taking commission fee into account).

My concern is that if it pans out that I sell directly to the local person, could the auctioneer come looking for his commission or some of his fess/costs? I've spoken briefly to the auctioneer and there's been no mention of contracts or terms so if I sign nothing can I be sure that I'm 100% covered should I end up selling directly to the local person. From this thread http://www.boards.ie/vbulletin/showthread.php?t=2056348896 , it would seem that I am probably covered even if I did sign a contract but I really want to be absolutely certain.

Milk & Honey

If you put it on the market openly and have to go back to the local person, he will have you over a barrell. The best thing to do is to get a valuation quietly from three different auctioneers. Put a realistic price to the interested person.
If you let an auctoneer put the house on the market and he shows it to your interested person you will end up being liable for a fee, if that person is the ultimate purchaser.
Generally speaking, if you are getting good money privately you should take it. If not, go on the market and take your chances.

MrThrifty

I hear you. But the thing is, I'm not telling and can't tell the full story here so things aren't exactly as I'd outlined! But there is no doubt that it would definitely be me and not the auctioneer who would introduce the interested buyer to the property. My concern is that an auctioneer then might look for fees for the original valuation and also any advertising they did if I sell privately because of a better offer. At the end of the day, they are putting the time and money into selling the property so would they be entitled to get their costs covered if you found your own buyer?

bath handle

MrThrifty wrote: »

I hear you. But the thing is, I'm not telling and can't tell the full story here so things aren't exactly as I'd outlined! But there is no doubt that it would definitely be me and not the auctioneer who would introduce the interested buyer to the property. My concern is that an auctioneer then might look for fees for the original valuation and also any advertising they did if I sell privately because of a better offer. At the end of the day, they are putting the time and money into selling the property so would they be entitled to get their costs covered if you found your own buyer?

What you want to do is highly dishonest. you want an auctioneer to spend time and money
to market your house when you know full well that you will not accept an offer from any potential purchaser he might introduce.
you are also planning to shaft you local buyer who will be paying over market value.

MrThrifty

Easy on bath handle...! You've picked things up ars*ways. There is an interested buyer who I can introduce to the property myself. I am saying that IF they and nobody the auctioneer introduces to the property ENDS UP buying it, then might the auctioneer then look for fees for the original valuation and also any advertising they did.

If you want to talk about 'highly dishonest' then I'm sure there are lots of previous home buyers and sellers out there who would love to have a discussion on this topic in relation to auctioneers themselves and the lack of interest in properly regulating the industry! But that's for another day.

Victor

No matter what happens, the auctioneer is entitled to be paid for their advertising outlay. To deprive them of that would be grossly unfair and possibly fraudulent.

Potentially, be quite up front with the auctioneer and say that you know X and that he is likely to be interested and that you have spoken to X youself. Agree that if X buys it that the auctioneer won't get the full fee. Agree what that fee would be.

Do realise that the auctioneer, if engaged, will be entitled to some fee if he does work.

You need to make up you mind as to whether you will put the land up for auction or just a private sale. You can also do both - if you can think X's offer is low, you can agree with X that he can have it if bids at auction exceed his bid + 20% or that you will take highest bid at auction ±Y%. This however, can be unfair on other bidders and doing it right means using an solicitor and/or auctioneer.

Get the paperwork for the property in order early on.

MrThrifty

Thanks Victor, that sounds fair enough in terms of paying for any advertising fees. My original post was actually in relation to covering myself if the auctioneer tried to fleece me as opposed to the other way round, which some assumed. Need to sort my username!