Buying agent Henry Pryor in MMoA Twitter spat over auction property

Buying agent Henry Pryor has cooked up a Twitter storm over agents selling property through Modern Method of Auction (MMoA).

MMoA, or a conditional auction, offers more flexibility than the traditional auction process.

At the end of the auction, once an offer has been accepted, the buyer has to pay a non-refundable reservation fee.

According to Rightmove this reservation deposit will vary but is normally calculated as a percentage of the final selling price.

EXCLUSIVE

“The buyer will then have an exclusive 28-day window to exchange contracts and then a further 28 days after that to complete the transaction. The reservation fee won’t normally form part-payment of the final selling price and so is an additional cost that you will need to cover.”

But taking to Twitter to highlight the upcoming sale of a three-bedroom, two bathroom character property in Hitchen through MMoA (main picture) listed on Rightmove through Connells, Pryor (@HenryPryor) wasn’t pleased.

“This Modern Method of Auction really is a bit of a con, isn’t it? On top of the seller’s fee the buyer pays a non-refundable 4.2% fee + £300 for the sellers pack, plus the agent and auctioneer can recommend other service which they get paid on.”

DRACONIAN

While some people such as Adam Brown (@AdamBrown850) agreed (“Some of the deadlines to complete are quite draconian.”) others such as Nic Chbat (@matchproperty) took an altogether different view.

“Could say the same thing about Buying agents, couldn’t you? I mean if you didn’t bother to look at the benefits to the buyer that is,” he replied.

Tweet back

Leaving Pryor to Tweet back: “A buying agent doesn’t skim a fee off the seller or charge the seller for the buyers survey or take back handers – sorry, introductory fees for introducing either party to other professionals. Nor do we charge the seller a non-refundable deposit.”

I don’t like the fact that it’s unclear as to whether the buyer pays more or the seller pays less.”

Pryor told The Neg: “I don’t like the fact that the buyer is paying the fee, expected to pay for the sales pack that’s been prepared. I don’t like the fact that it’s unclear as to whether the buyer pays more or the seller pays less.

“A traditional auction is a tried and tested way of buying and selling property for millennia. This is more expensive. Quite a lot of properties seem to being sold by this fashion. I’ve never experienced it first hand and I might be doing it a disservice. But I don’t see what the benefit is to buyers.”

A spokesperson for Connells says: “MMoA is one of the options we offer at Connells Group, giving our vendors greater choice as to the most appropriate method of sale dependent on their individual needs and circumstances. Fees to all parties are clear and transparent.”

More choice

Jamie Cooke, Managing Director of Iamsold, says: “MMoA ensures that consumers are given more choice around the right method of sale for them dependent on their individual needs and circumstances, offering the speed and security that Private Treaty can’t always deliver.

“With current timescales for Private Treaty completion sitting at 150 days+ many buyers and sellers are looking for different options to accommodate their needs.

“There are definitely myths surrounding auction that still need to be busted, especially surrounding fees.

“Fees to all parties are clear, transparent and explained clearly up front with only ever one party being charged. The market needs to continue to offer consumers choice and so alternative methods of sale will continue to grow, it’s about giving clients the best advice to match their individual circumstances.”