smee
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Post by smee on Mar 3, 2016 17:11:19 GMT
Just watched this fail to sell at auction. It reached £2500 so didn't make its reserve.
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alison
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Post by alison on Mar 3, 2016 17:28:26 GMT
Just watched this fail to sell at auction. It reached £2500 so didn't make its reserve. So much for the £4000 valuation.
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mikes1531
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Post by mikes1531 on Mar 3, 2016 19:51:52 GMT
Just watched this fail to sell at auction. It reached £2500 so didn't make its reserve. So much for the £4000 valuation. I'm surprised the reserve would have been set so high. The loan is for £2000 and it's been outstanding for nearly nine months. So 12% interest for lenders would be about £180. FS fees/costs have to be added on top of that, and I don't know whether auction fees would have to be paid by FS or are charged to the buyer, but if the reserve was set to cover all of that it does appear -- to me, anyway -- that the bidding stopped not very far short of it. It's the situation where I might have expected FS to take the £2500 just to close out the loan to all the investors' satisfaction, particularly since having to organise another auction will take time, run up more interest and fees/costs, making it even harder to exit successfully a couple of months from now.
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smee
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Post by smee on Mar 3, 2016 19:59:01 GMT
Auction houses charge both buyer and seller. I don't know the exact fees for this one but from past experience it is likely to be close to 20%
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alison
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Post by alison on Mar 3, 2016 20:05:01 GMT
Auction houses charge both buyer and seller. I don't know the exact fees for this one but from past experience it is likely to be close to 20% I agree. With vat on the commission plus an insurance fee plus a placement fee the total is probably going to be around 20% of the selling price, maybe more. So you would think the reserve would need to be around £3000.
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Post by cpaken on Mar 9, 2016 4:00:13 GMT
Just watched this fail to sell at auction. It reached £2500 so didn't make its reserve. How did you find out where they did the auction?
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smee
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Post by smee on Mar 9, 2016 8:57:10 GMT
Just watched this fail to sell at auction. It reached £2500 so didn't make its reserve. How did you find out where they did the auction? I searched by artist in the-saleroom.com. It was for sale at Adam Partridge auction house, and I watched the sale live online. There was one commission bid of £2500 and the sale was passed. It is always possible that there may have been some negotiation with the bidder afterwards, but we'll have to just wait and see.
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smee
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Post by smee on May 4, 2016 15:43:04 GMT
This has just sold with a hammer price of £2850, which might just cover the interest depending on the commision rate.
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SteveT
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Post by SteveT on May 4, 2016 18:19:54 GMT
This has just sold with a hammer price of £2850, which might just cover the interest depending on the commision rate. And the loan has just now been repaid, capital and interest in full. Well done FS !! "Painting sold at auction for sufficient to cover capital and all interest, including additional interest to date."
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