Buying a repossessed property
Discussion
I've just put in an offer on a property that was repossessed.
Can someone fill me in on some details with these -
They've told me I've put the highest offer in, but the EA's client won't pass it onto their client and have asked for a final offer. (I've said I'm not prepared at this point in time to increase my offer). If I don't increase it and there are no new offers, what other options would they take? Auction? (The offer is a little above 20% off asking price FWIW).
If the offer, or a further one, becomes accepted, what happens then - I've heard that they're obliged to publish in a local paper the value of my offer and wait a further month? Normally you'd ask them to remove a property from the market once an offer is accepted but it sounds as though that's not an option here?
Can someone fill me in on some details with these -
They've told me I've put the highest offer in, but the EA's client won't pass it onto their client and have asked for a final offer. (I've said I'm not prepared at this point in time to increase my offer). If I don't increase it and there are no new offers, what other options would they take? Auction? (The offer is a little above 20% off asking price FWIW).
If the offer, or a further one, becomes accepted, what happens then - I've heard that they're obliged to publish in a local paper the value of my offer and wait a further month? Normally you'd ask them to remove a property from the market once an offer is accepted but it sounds as though that's not an option here?
My first property was a repo. It was fine and was bought with my eyes open. But then again, I still didn't quite understand how petty people can be. All ended up OK and the house was great - but don't expect to be able to move in on day one - it could have had the door handles removed!!!!
cs02rm0 said:
Thanks, that's what I figured. Really couldn't see why I'd want to outbid myself! Seemed a very strange idea.
I believe the Insolvency Practioner is required by law to try and get a better price, but I was off the impression they simply placed an Ad in the local press etc.. to let people know an offer has been made to see if it generates a higher price.Bottom line, how keen are you on the place? I'd tell them to get stuffed though and advise that's your offer. I also believe that an EA is legally obliged to pass ANY offer on to their client, so if they don't, ask them to put the fact they won't be doing so in writing.
off_again said:
My first property was a repo. It was fine and was bought with my eyes open. But then again, I still didn't quite understand how petty people can be. All ended up OK and the house was great - but don't expect to be able to move in on day one - it could have had the door handles removed!!!!
I've viewed it twice and they've absolutely gutted it. To be honest though, if I get it, judging by the state of what's left they've probably done me a favour, there's hardly anything left to throw out!Jasandjules said:
cs02rm0 said:
Thanks, that's what I figured. Really couldn't see why I'd want to outbid myself! Seemed a very strange idea.
I believe the Insolvency Practioner is required by law to try and get a better price, but I was off the impression they simply placed an Ad in the local press etc.. to let people know an offer has been made to see if it generates a higher price.Bottom line, how keen are you on the place? I'd tell them to get stuffed though and advise that's your offer. I also believe that an EA is legally obliged to pass ANY offer on to their client, so if they don't, ask them to put the fact they won't be doing so in writing.
cs02rm0 said:
digger_R said:
Out of interest, do you know where I can look at repo properties online?
This was advertised on rightmove, though the advert didn't mention it was a repossession.They know in auction it prob wont make anywhere near what you've offered, they're just trying to screw a bit more out of you. I'd put a time limit on my offer and tell them if it wasnt accepted by then I'd be reducing it by 2% , it's the only tool you've got, if they wont sell to you you cant force them. Also you have the problem that if they do accept your offer until exchange they'll be trying to get better offers and wont baulk at blowing you out even on the morning of exchange. I've been lucky in that the couple of repo properties I have bought have been on estates where I have other properties and knew the area well and had recent searches done on other properties and was able to move very quickly to exchange with no searches etc.
Jasandjules said:
Bottom line, how keen are you on the place? I'd tell them to get stuffed though and advise that's your offer. I also believe that an EA is legally obliged to pass ANY offer on to their client, so if they don't, ask them to put the fact they won't be doing so in writing.
It sounds like there are multiple layers - as in the EA's passed it onto their client (CompanyX) but it's a client of CompanyX who are the vendor and CompanyX haven't passed it onto them from what they've said.I don't see any reason though to think that they've not passed it on, probably more likely that they're just playing a game?
cs02rm0 said:
I've viewed it twice and they've absolutely gutted it. To be honest though, if I get it, judging by the state of what's left they've probably done me a favour, there's hardly anything left to throw out!
This could give you real problems with the mortgage lender. Uninhabitable properties (i.e no Kitchen, no bathroom) can be turned down flat, or require a retention by the lender until work is completed to their satisfaction, Equally if you are able to buy it cash, do some work and then hope to mortgage it, be aware that some lenders will insist on a minimum 6 month ownership before they will consider a remortgage application.
cs02rm0 said:
Jasandjules said:
Bottom line, how keen are you on the place? I'd tell them to get stuffed though and advise that's your offer. I also believe that an EA is legally obliged to pass ANY offer on to their client, so if they don't, ask them to put the fact they won't be doing so in writing.
It sounds like there are multiple layers - as in the EA's passed it onto their client (CompanyX) but it's a client of CompanyX who are the vendor and CompanyX haven't passed it onto them from what they've said.I don't see any reason though to think that they've not passed it on, probably more likely that they're just playing a game?
I bought a little repo in Novemeber.
Flat was advertised for £110,000 It was sold in 2007 for £125k. They had offers earlier in 2008 for up to £105k.
I offered £90,000. Refuse. £92,000 final offer was accepted.
I couldne exchange in 14 days, I needed 16 so they sent it to auction on the 15th day. As i have my mortgage offer and surveys done I bid.
£70,000 no other bids.
My advice, limited as it is.
If the property is being auctioned a long way away (Mine was TN6 property, London auction) and is the only local lot in that auction the chances of local bidders are lower. Find out if anyone else has had searches done on the property for a mortgage. If not things are looking good.
Cash buyers are currently more interested in probate properties as they can get them for cash cheap, as most dont have a mortgage on them. Also a £50k drop divided by 4 greedy relatives is easier to swallow than a single seller/bank.
Flat was advertised for £110,000 It was sold in 2007 for £125k. They had offers earlier in 2008 for up to £105k.
I offered £90,000. Refuse. £92,000 final offer was accepted.
I couldne exchange in 14 days, I needed 16 so they sent it to auction on the 15th day. As i have my mortgage offer and surveys done I bid.
£70,000 no other bids.
My advice, limited as it is.
If the property is being auctioned a long way away (Mine was TN6 property, London auction) and is the only local lot in that auction the chances of local bidders are lower. Find out if anyone else has had searches done on the property for a mortgage. If not things are looking good.
Cash buyers are currently more interested in probate properties as they can get them for cash cheap, as most dont have a mortgage on them. Also a £50k drop divided by 4 greedy relatives is easier to swallow than a single seller/bank.
Nothing to do with Reposessions, but we once caught an estate agent out.
We were looking to move around four years ago, and found a property that had been on the market for a little while. We made a "low but not unreasonable" offer as an opening gambit, which we were told was flatly rejected.
We upped our offer by £7.5k, which was apparantly rejected a day later.
We decided to sit on it, in the hope that the vendor would sweat and come back to us.
I met a friend in the pub a day or so later, who I didn't know was a friend of the vendors - and he asked me if we were interested in the house, as the vendors had recieved no communication from the agents.
Needless to say that fireworks ensued, and we agreed on a price that was £3k above our original opening gambit.
Sadly the whole thing fell through when the buyer of our house turned out to be a complete moron, and eventually we chose to extend rather than move.
We were looking to move around four years ago, and found a property that had been on the market for a little while. We made a "low but not unreasonable" offer as an opening gambit, which we were told was flatly rejected.
We upped our offer by £7.5k, which was apparantly rejected a day later.
We decided to sit on it, in the hope that the vendor would sweat and come back to us.
I met a friend in the pub a day or so later, who I didn't know was a friend of the vendors - and he asked me if we were interested in the house, as the vendors had recieved no communication from the agents.
Needless to say that fireworks ensued, and we agreed on a price that was £3k above our original opening gambit.
Sadly the whole thing fell through when the buyer of our house turned out to be a complete moron, and eventually we chose to extend rather than move.
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