Discussion
I have a friend who wants to put in an offer on a Repo. The problem is that it has already had an offer on it.
The question is, does she go in £250 above the current offer and up it each time the other purchaser does, or does she go straight to her maximum offer and hope they can't go that high? Or something else?
The question is, does she go in £250 above the current offer and up it each time the other purchaser does, or does she go straight to her maximum offer and hope they can't go that high? Or something else?
Jasandjules said:
I have a friend who wants to put in an offer on a Repo. The problem is that it has already had an offer on it.
The question is, does she go in £250 above the current offer and up it each time the other purchaser does, or does she go straight to her maximum offer and hope they can't go that high? Or something else?
How does she know what the current offer is?The question is, does she go in £250 above the current offer and up it each time the other purchaser does, or does she go straight to her maximum offer and hope they can't go that high? Or something else?
What is the disposal process the bank(?) is proposing to take? I thought most repos, for legal reasons, go to auction thesedays?
Estate Agent said it was a Repo.
Small increments is what I suggested to her BUT her father has told her to go in at her best price because the other party might be scared off and if she goes up in small increments they might just keep on raising to match her. I guess a sort of Ebay Madness effect?
Small increments is what I suggested to her BUT her father has told her to go in at her best price because the other party might be scared off and if she goes up in small increments they might just keep on raising to match her. I guess a sort of Ebay Madness effect?
Jasandjules said:
Estate Agent said it was a Repo.
Small increments is what I suggested to her BUT her father has told her to go in at her best price because the other party might be scared off and if she goes up in small increments they might just keep on raising to match her. I guess a sort of Ebay Madness effect?
If she doesnt go up in increments then she could end up paying far more than she needs too.Small increments is what I suggested to her BUT her father has told her to go in at her best price because the other party might be scared off and if she goes up in small increments they might just keep on raising to match her. I guess a sort of Ebay Madness effect?
Odie said:
Jasandjules said:
Estate Agent said it was a Repo.
Small increments is what I suggested to her BUT her father has told her to go in at her best price because the other party might be scared off and if she goes up in small increments they might just keep on raising to match her. I guess a sort of Ebay Madness effect?
If she doesnt go up in increments then she could end up paying far more than she needs too.Small increments is what I suggested to her BUT her father has told her to go in at her best price because the other party might be scared off and if she goes up in small increments they might just keep on raising to match her. I guess a sort of Ebay Madness effect?
If a private seller sets an asking pice and you can't afford it, you may as well make your best and final offer and see if it's enough to turn their head. And the seller has an unlimited amount of time to decide if they like the offers they're getting.
In the case of repo or other distress sales, the agent is simply duty bound to get the best price they can by a certain date. So you just need to inch your way forward to that date.
Another thing that you have to take into account when purchasing repo's is the bank will go with whoever is less hassle.
Is your friend a cash buyer?
Reason I ask is if she is she could simply offer say a grand more and probably win it as she is in the best possible position.
However if she is mortgaging - and she will need to be able to show proof of deposite AND a mortgage offer to the estate agents before they even entertain a higher offer then I think she will need to bid considerably more to win it and this is "if" the other party hasn't already had there searches etc performed and "if" theyre not a cash buyer, If they have and they are then the chances of her gettng it regardless of the bid are a lot slimmer, and if were going with the latter id say impossible.
To give you an example my brother in law was the first person to look at a repo last year, put in an offer and the bank went with someone else, he put in another offer which he later found out was 10k higher than the offer they accepted and he still didn't get it.
Is your friend a cash buyer?
Reason I ask is if she is she could simply offer say a grand more and probably win it as she is in the best possible position.
However if she is mortgaging - and she will need to be able to show proof of deposite AND a mortgage offer to the estate agents before they even entertain a higher offer then I think she will need to bid considerably more to win it and this is "if" the other party hasn't already had there searches etc performed and "if" theyre not a cash buyer, If they have and they are then the chances of her gettng it regardless of the bid are a lot slimmer, and if were going with the latter id say impossible.
To give you an example my brother in law was the first person to look at a repo last year, put in an offer and the bank went with someone else, he put in another offer which he later found out was 10k higher than the offer they accepted and he still didn't get it.
We don't know if it is a private buyer or not but we do know they are awaiting their mortgage being finalised. She is a first time buyer with a decent cash deposit and a mortgage AIP.
Her max price is only 4k above the current offer. So she wouldn't have much room to move in, I was thinking of £250 increments at this point to string things out whilst the solicitor sorts it all out.
Turbo, that is strange as I think they are legally obligated to get the highest price.
Her max price is only 4k above the current offer. So she wouldn't have much room to move in, I was thinking of £250 increments at this point to string things out whilst the solicitor sorts it all out.
Turbo, that is strange as I think they are legally obligated to get the highest price.
V8mate said:
Jasandjules said:
Turbo, that is strange as I think they are legally obligated to get the highest price.
They are. But there should be a published 'closing date' for offers too.Jasandjules said:
V8mate said:
Jasandjules said:
Turbo, that is strange as I think they are legally obligated to get the highest price.
They are. But there should be a published 'closing date' for offers too.
This is all sounding very odd. Maybe your sis should overbid by a couple of grand; sufficient for it to be material to the vendor but leaving enough scope to move up if she needs to, just in case she only gets one bite at the cherry. V8mate said:
Jasandjules said:
Turbo, that is strange as I think they are legally obligated to get the highest price.
They are. But there should be a published 'closing date' for offers too.The bank will always go with who is in the strongest position if its for the sake of a couple of grand - this is from experience
.And if the other purchaser is in a strong position they will always go back to the origional bidder and ask if they want to match the bid.
Personally I wouldn't mess around with £250 increments, I would go with the highest offer they are willing to pay and if they get it they get it.
Jasandjules said:
Asked the EA today, he said it's a private buyer.
ETA - and he said that the Mortgage Co. want it marketed until exchange. There is no set closing date.
They are always marketed unill completion ETA - and he said that the Mortgage Co. want it marketed until exchange. There is no set closing date.
Edited by Jasandjules on Saturday 10th April 12:17
.If its a private buyer and he's not a cash buyer then give it a punt,
But bear in mind what I have said they will go back to him and ask him to increase his offer to yours before they accept it.
Turbo cab said:
Jasandjules said:
Asked the EA today, he said it's a private buyer.
ETA - and he said that the Mortgage Co. want it marketed until exchange. There is no set closing date.
They are always marketed unill completion ETA - and he said that the Mortgage Co. want it marketed until exchange. There is no set closing date.
Edited by Jasandjules on Saturday 10th April 12:17
.If its a private buyer and he's not a cash buyer then give it a punt,
But bear in mind what I have said they will go back to him and ask him to increase his offer to yours before they accept it.
Vron said:
??? I thought they were only marketed till exchange - once you've exchanged if the vendor pulls out and goes with a higher bidder you can sue them!
That is what I think as well. After all, once exchange, the contract is signed, sealed and delivered. The question is purely going to be whether or not she can get to exchange before the other party. Then will the other party stop their lawyer whilst they engage in price negotiations, assuming they do fight back in a bidding war. Which I suspect they must, but then I kind of hope they have already put in their highest bid....
Vron said:
Turbo cab said:
Jasandjules said:
Asked the EA today, he said it's a private buyer.
ETA - and he said that the Mortgage Co. want it marketed until exchange. There is no set closing date.
They are always marketed unill completion ETA - and he said that the Mortgage Co. want it marketed until exchange. There is no set closing date.
Edited by Jasandjules on Saturday 10th April 12:17
.If its a private buyer and he's not a cash buyer then give it a punt,
But bear in mind what I have said they will go back to him and ask him to increase his offer to yours before they accept it.
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