Repossessed Houses
Discussion
southgate said:
Does anyone know if you can get bargain/cheaper properties buying houses that have just been repossessed?
Basically, is it worth it and what contacts do you need to make?
Oh yes, buying a repossessed property is deff worth it in my experience. I've bought around 100 repossessed properties in my time and only 3 were not worth it and those were right at the start when i got a bit excited in an auction and i over paid. Basically, is it worth it and what contacts do you need to make?
Find and auction, get their listings, see a property you like, view it, find out its current Market Value, decide what is the max you will pay that make your numbers walk, bid for it and only buy it if you get it for the price you set or under. WALK AWAY IF IT GOES HIGHER.
So many people get carried away with the bidding that they end up not getting a bargain.
Auctions are where I have always purchased my properties, and Allsop's next auction details are now online http://www.allsop.co.uk/
Remeber if you buy at auction, the fall of the hammer is effectively exchange of contract and if you don't complete you will lose your deposit. (10%) You will most likely have a 28 day completion deadline. (This can be extended, but at the auctioneers discretion)
Not all repo's are mortgagable, if the kitchen/bathromm has been removed (it happens, some people will strip a property bare on the way out)then you may not get a mortgage, or you may get one with
full retention, which means you may not have the funds to complete.
You need to get hold of the legal pack from the auctioneer to see that there is nothing about the property which will hinder the purchase (so you will be paying for legal work prior to purchase) and unless you know a lot about buildings, you should consider paying foer a survey, if the surveyor tells you its unmortgageable due to defects, then listen.
One house near us sold 3 times through the same auctioneer before it finally completed at the fourth attempt. That means the seller received three lots of 10% deposits in addition to the final price paid, and all because the buyers hadn't done their homework properly.
Not all repo's are mortgagable, if the kitchen/bathromm has been removed (it happens, some people will strip a property bare on the way out)then you may not get a mortgage, or you may get one with
full retention, which means you may not have the funds to complete.
You need to get hold of the legal pack from the auctioneer to see that there is nothing about the property which will hinder the purchase (so you will be paying for legal work prior to purchase) and unless you know a lot about buildings, you should consider paying foer a survey, if the surveyor tells you its unmortgageable due to defects, then listen.
One house near us sold 3 times through the same auctioneer before it finally completed at the fourth attempt. That means the seller received three lots of 10% deposits in addition to the final price paid, and all because the buyers hadn't done their homework properly.
scotal said:
Remeber if you buy at auction, the fall of the hammer is effectively exchange of contract and if you don't complete you will lose your deposit. (10%) You will most likely have a 28 day completion deadline. (This can be extended, but at the auctioneers discretion)
Not all repo's are mortgagable, if the kitchen/bathromm has been removed (it happens, some people will strip a property bare on the way out)then you may not get a mortgage, or you may get one with
full retention, which means you may not have the funds to complete.
You need to get hold of the legal pack from the auctioneer to see that there is nothing about the property which will hinder the purchase (so you will be paying for legal work prior to purchase) and unless you know a lot about buildings, you should consider paying foer a survey, if the surveyor tells you its unmortgageable due to defects, then listen.
One house near us sold 3 times through the same auctioneer before it finally completed at the fourth attempt. That means the seller received three lots of 10% deposits in addition to the final price paid, and all because the buyers hadn't done their homework properly.
Good advice. It is not as simple as turning up at auction and thinknig, "Oh, I like that one - I will bid!" There is a considerable amount of work needed upfront and financial work upfront before actually bidding on a property.Not all repo's are mortgagable, if the kitchen/bathromm has been removed (it happens, some people will strip a property bare on the way out)then you may not get a mortgage, or you may get one with
full retention, which means you may not have the funds to complete.
You need to get hold of the legal pack from the auctioneer to see that there is nothing about the property which will hinder the purchase (so you will be paying for legal work prior to purchase) and unless you know a lot about buildings, you should consider paying foer a survey, if the surveyor tells you its unmortgageable due to defects, then listen.
One house near us sold 3 times through the same auctioneer before it finally completed at the fourth attempt. That means the seller received three lots of 10% deposits in addition to the final price paid, and all because the buyers hadn't done their homework properly.
AMZ1 said:
I have never bought at auction but legal packs, are they free or you have to pay for them?
You pay for them, not hugely expensive (think £20)BTW last auction I was at, half the legal packs on hand on the day were deliberatley snaffled by interested bidders to stop others having a look at them. Don't know if that is standard, but it is underhand.
make friends (and buy some brown envolopes) with some estate agents, as they deal with some repos's, but also desperate buyers about to be repo'd and part finished projects etc etc........many of the auctions around my area seem to get near retail money for stuff needing full refurbs,although as money isnt as freely available this might change
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