Putting an offer on a flat which already has an offer???

[qwerty123]

Hi,

Just wanted to ask anyone who knows better if theres any solution to our problem.

My friend has put an offer in on a flat which someone else has already put an offer in on Monday. My friend is a cash buyer and the other party is not. He is a cash buyer because he is remortaging another property to fund this property, but the funds won't clear till next Tuesday. They have been advised that this will probably be too late.

The offer my friend has put in is for the asking price - We know that the other offer is below asking price.

Is there any way round this. Are there companies that can offer quick short-term loans secured against an asset quickly etc. Can a mortage be assessed completed by the other party in a little over a week.

Any advice is much appreciated,

Thanx

Edited by qwerty123 on Friday 14th May 13:32

[qwerty123]

Just to add, the property was previously a repossession that has been on the market for about 3 weeks. Is there any way of finding out the bank/company that has appointed the agency to deal with the sale and deal with them directly or is this illegal.

Thanks

[Grey Ghost]

If the flat in question is only "under offer" it is exactly that. No deal has been done and the property is still on the market. Have your friend make sure their offer is put to the vendor by the agent empahsising it is a cash offer with funds available next week.

If the vendor is sensible they will listen to the offer as a cash buyer would break any chain ahead of their move and potentially speed things up a bit.

[rah1888]

qwerty123 said:

Just to add, the property was previously a repossession that has been on the market for about 3 weeks. Is there any way of finding out the bank/company that has appointed the agency to deal with the sale and deal with them directly or is this illegal.

Thanks

It should be in the HIP.

Your friend is not strictly a cash buyer. That would be someone who holds the full balance of the purchase price in cash without relying on any mortgage/loan. [/pedantmode]

[pikeyboy]

If its a repo it'll be on the market until contracts are signed and exchanged. We bought our last house as a repo through an estate agent not at auction. Part of the deal is that they have to get the best possible price for the debtor and thyey advertise what you've offered in the local paper and inviting other offers over this. This is quite nerve racking considering you're spending cash on searchs solicitors etc.

[qwerty123]

Thanks for the replies.

Spoke to my friend again and they actually don't know what position the other party is in.

My friends funds will be pulled from another property, but the bank can't send a letter out till Tuesday which the agent says might be too late.

The agent has forwarded on my friends information to the actual owner of the property but they said they can't formally accept this offer until they have confirmation of his ability to buy the property, even if they informally believe he can afford the property.

Realistically, what can really happen in a week for the other party. From what everybody is saying, its not complete until all the legal work has been completed which means its still a few weeks away I think.

[V8VKK]

qwerty123 said:

Thanks for the replies.


Realistically, what can really happen in a week for the other party. From what everybody is saying, its not complete until all the legal work has been completed which means its still a few weeks away I think.

An exchange could take place at any time with a completion at a set date

[qwerty123]

V8VKK said:

qwerty123 said:

Thanks for the replies.


Realistically, what can really happen in a week for the other party. From what everybody is saying, its not complete until all the legal work has been completed which means its still a few weeks away I think.

An exchange could take place at any time with a completion at a set date

Is an exchange likely or do-able in a week, from the first offer placed on the property.

Thanks

[Bluebarge]

Why is your friend offering full asking on a flat in this market? If he likes throwing away money could he send some to me?

Whether exchange is possible in a week depends on what searches are included in the HIP and whether your friend's lawyer thinks it is sensible to rely on them.

I suggest your friend contacts a solicitor. And calms down.

[anonymous-user]

Bluebarge said:

Why is your friend offering full asking on a flat in this market? If he likes throwing away money could he send some to me?

The asking price could be well below market price of course, especially as this is a repossessed property.

[V8VKK]

qwerty123 said:

V8VKK said:

qwerty123 said:

Thanks for the replies.


Realistically, what can really happen in a week for the other party. From what everybody is saying, its not complete until all the legal work has been completed which means its still a few weeks away I think.

An exchange could take place at any time with a completion at a set date

Is an exchange likely or do-able in a week, from the first offer placed on the property.

Thanks

Yes you can do an exchange in a day

[qwerty123]

Bluequay said:

Bluebarge said:

Why is your friend offering full asking on a flat in this market? If he likes throwing away money could he send some to me?

The asking price could be well below market price of course, especially as this is a repossessed property.

The property is a reposession that sold two years ago for 30% more than the current asking price. As an investment, there are way better options out there, but for my friends, its a better solution than paying rent to someone else and instead putting this money into a mortage, whilst getting her own place, over sharing.

[dickymint]

If your friend is that keen to buy then He could always offer a non refundable deposit along with a deadline date and time for completion.

My Mother did this years ago when She sold Her small farm. She fely terrible at the time as She had to get the timing spot on so as not to loose the original offer. Extra 10k made up for it though This was at the height of the gazzumping era so don't know if it's possible now though.

[qwerty123]

Turns out its in the paper for public announcement today at 10% below what shes offered!?!?

[V8VKK]

Looks like your freind is being played by the estate agent, do a land search (£4) and find out who the lender is then fax your offer to the agent and cc in the lender. This should make the agent think twice about doing any funny business.

[Darth Paul]

On a similar note, the house I'm buying was a p/x to a developer. As I'm a FTB I had my offer accepted at slightly below asking. Estate Agents phoned me a few days after I had my offer accepted to say that someone had put in a higher offer (I presumer asking price, as it is a bit of a steal and I felt cheeky asking below!) but the developer doesn't deal in gazumping, so my original offer stands. So just a FYI, just because you friends offer is higher, doesn't mean they will accept it.

[qwerty123]

In this circumstance, since the property is a repossession, the vendor will have appointed a
the agent to get the best price possible for the property in as short a time frame as possible. I'm hoping that for this reason they will take into account the higher offer.

Also, how might the agent be playing my friend - is it because they are trying to say that the other offer might be already complete so unless my friend puts in a significantly better offer, its pointless even trying.

[qwerty123]

Also, just to add in todays market, for example, a £100k repossessed property, what is a realistic starting point offer to put in before it gets just cheeky, lol.

Thanks

[Jasandjules]

qwerty123 said:

Is an exchange likely or do-able in a week, from the first offer placed on the property.

Thanks

It could take a week for the mortage company to draw down the funds.

You will need more than a week for the searches.

You will also need more than a week likely as not to even get answers on the questions necessary before you can exchange.

So all in all, I'd say it really isn't likely.

I have done it in 22 days, BUT it took a lot of hassling of all parties.

As people have said above, find out who the repo company are and speak directly with them, it may be necessary to offer 3-5k above the existing offer to make it worth their while changing to your mate IME..... Depending on how far along the sale is etc.