Auctioneers Fees &

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ninsaga

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Would like peoples thoughts on this.... auctioneers fees are in the range of 0.75%...1.5%....2.5% (all plus VAT) for various firms around Cork city & county. (Plus of course the obligitory fee to post on myhome.ie)

I have heard that with 2 firms in particular who's fees that are in the lower range that they are primarily anxious just to make the sale... and will close the sale once a particular price is achieved. I know of one who advised a (spy) interested buyer that the sale had been agreed when in fact there had indeed been an offer but the seller did not agree. The auctioneers ploy here was to advise the seller that there were no more interested parties & hence force the seller to accept the offer....the autioneer had his costs covered by the offer...sale would have closed..and move onto the next.

On the higher end of the scale though I am not sure if they help stage/ sell the house at for a higher price or do in fact offer a better lever of service.... and even though have higer fees that this is compensated somewhat by the fact that they would achive a higher price.

What are the thoughts & experiences of others here?

ninsaga
 
I would have thought that especially for someone on the lower fee range that as they are operating on tighter margin they would want to maximise their fee by getting as much as possible.
 
Yes I would have thought likewise...however if these firms are seen to be selling more houses...more quickly..then that can be an attraction to a potential seller. Also the longer they are holding the house oout for sale, the more time thay have tied up without getting payment. More time can give both the potetial buyer or seller a chance to pull out of the sale if their circumstances changed.

Just another way of looking at it I suppose.

ninsaga
 
I suppose yet again it's "caveat emptor" the auctioneers who are charging larger fees obviously have a market for those fees otherwise they wouldn't be in business. It's up to the vendor (or purchaser of auctioneering services) to check out which auctioneer would suit their needs the best. In a way they are giving you their opinion of the value of their services

With regards to the auctioneers closing sales quickly and not chasing the possible maximum values on a property:
Small fees mean tight margins - this means that the more time they dedicate to getting in offers, the less cost effective it is for them as there are only so many hours in the day. In order for the auctioneer to maximise their profit margin, they would need to get in as many properties as possible with a swift turnaround.
IMHO this is certainly not best practice as I would engage an auctioneer to look after my best interests first and his second. As the employer in this relationship I would be wary of engaging someone who would operate like this.
 
I have heard some suggestins lately that the best way to overcome this is to agree a sliding scale of fees with the estate agent i.e. the higher the price they achieve, the better the %.
 
Which is all well and good when you have a large property to sell with large fees involved but it's unlikely that they will argue the toss when there is as little as €100 in the difference between a point of a percentage!!!!
 
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