Offers Over - would you offer under?
Discussion
Hi
I have my eye on a reposession. It's advertised at offers over a certain price. I would be a cash buyer - do you think there's any chance of getting the property under the advertised price for cash or does the bank acting for the reposession go for the highest price possible even if the sale would take longer / chains etc? Anyone any experiences?
The house is 'cheaply' priced already but needs money spending on it. It was a builder's own house (he built himself) who has gone bust and some of the quality of the work is questionable (maybe why he went bust!) and thats only the parts you can see!
Thanks
I have my eye on a reposession. It's advertised at offers over a certain price. I would be a cash buyer - do you think there's any chance of getting the property under the advertised price for cash or does the bank acting for the reposession go for the highest price possible even if the sale would take longer / chains etc? Anyone any experiences?
The house is 'cheaply' priced already but needs money spending on it. It was a builder's own house (he built himself) who has gone bust and some of the quality of the work is questionable (maybe why he went bust!) and thats only the parts you can see!
Thanks
It all depends on how savvy the estate agent's are.
With reposesion's the bank will always go with the purchaser in the best position to move.
Explain to them that you are a cash buyer and can act immediatly - If need be even say to them that you wan't to offer xxxx and will "look after" them if you get it for that price, The fact you are a cash purchaser puts you in the best position anyway.
Nine times out of ten, even if you were to offer 10k under the closest bid - and they needed to get a mortgage, You should still win.
HTH
With reposesion's the bank will always go with the purchaser in the best position to move.
Explain to them that you are a cash buyer and can act immediatly - If need be even say to them that you wan't to offer xxxx and will "look after" them if you get it for that price, The fact you are a cash purchaser puts you in the best position anyway.
Nine times out of ten, even if you were to offer 10k under the closest bid - and they needed to get a mortgage, You should still win.
HTH
ineedagallardo said:
It all depends on how savvy the estate agent's are.
With reposesion's the bank will always go with the purchaser in the best position to move.
Explain to them that you are a cash buyer and can act immediatly - If need be even say to them that you wan't to offer xxxx and will "look after" them if you get it for that price, The fact you are a cash purchaser puts you in the best position anyway.
Nine times out of ten, even if you were to offer 10k under the closest bid - and they needed to get a mortgage, You should still win.
ETA a friend recently purchased a repo, He offered 7k less than the asking and 10k less than the nearest bid and still won it as he was in a better purchasing position.
HTH
With reposesion's the bank will always go with the purchaser in the best position to move.
Explain to them that you are a cash buyer and can act immediatly - If need be even say to them that you wan't to offer xxxx and will "look after" them if you get it for that price, The fact you are a cash purchaser puts you in the best position anyway.
Nine times out of ten, even if you were to offer 10k under the closest bid - and they needed to get a mortgage, You should still win.
ETA a friend recently purchased a repo, He offered 7k less than the asking and 10k less than the nearest bid and still won it as he was in a better purchasing position.
HTH
Vron said:
I thought legally once an offer is made on a repo the Estate Agent has to advertise the offered price in the local property rag for so many days before they can accept?
That is correct and they have to advertise it until completion,The only way you could get shafted is if another cash buyer comes along and offers signicantly more than you have offered,
And i believe that this would have to be made within the first week or two, as after this time and having had all your surveys completed - You would be so close to completion that they probably wouldn't bother.
Also whats worth bearing in mind is what's currently owed on the house, again depending on how savvy the estate agent is they may disclose this information to you.
Normally repo's are priced according to market value and the condition, which again is normally more than what they actually owe.
So as long as the bank is getting there money back - and in your case quickly, there not too fussed.
Edited by ineedagallardo on Tuesday 6th October 19:02
Be aware that any subsequent resale to anyone other than a cash buyer could prove very difficult. Mortgage companies will not lend against any property newer than 10 years old unless they come with NHBC or architect indemnities, as he has gone bust I doubt any of these are in place, which is probably why its cheap
We bought our first propoer house in Falkirk by this method. It was part of the escrow on a will and was advertised at offers over £127k. We knew (and I think the estate agent knew) that the house was overpriced. We went in at £107k I think and got it.
Like they say above, doesn't harm asking.
Dr Rick.
Like they say above, doesn't harm asking.
Dr Rick.
theaxe said:
I'd say if it's in Scotland then you haven't got much chance. In England it's worth a go.
Not true. But it depends on a bunch of things; any interest in the property (if none, then there's nothing wrong with being cheeky and asking), personal opinion on the price (could be overpriced and the vendor is taking the p*ss), how long its been on the market (normally they'll stay O/O for a while and then shift to OIRO or even Fixed Price, but you could prempt with an offer). Also depends on your purchase position.Dr Rick
Update - found out the house was built somewhere between 2001 and 2005 so definately less than 10 years. No NHBC / Architect cert or ? Zurich certificate ? / I am trying to get hold of the Planning dept to speak to the Building inspector to see if / when they signed the house off to get an accurate completion date.
The upshot is no lender will touch it so I have been told. This presents a dilemma for me as I wanted to buy the house cash then within 6 months port my mortgage over at Base + 0.17 then draw that money back and invest it elsewhere until interest rates make it uneconomical then pay the mortgage off.
Woolwich have told me they automatically value houses at less than 10 years old with no paperwork at Zero value regardless of how much anyone wants to borrow the lender used the example it could be worth £50 million and they'd still say no.
The bizarre thing is once the house is 10 years old lenders will lend again.
Going to do a second viewing and mull it over.
The upshot is no lender will touch it so I have been told. This presents a dilemma for me as I wanted to buy the house cash then within 6 months port my mortgage over at Base + 0.17 then draw that money back and invest it elsewhere until interest rates make it uneconomical then pay the mortgage off.
Woolwich have told me they automatically value houses at less than 10 years old with no paperwork at Zero value regardless of how much anyone wants to borrow the lender used the example it could be worth £50 million and they'd still say no.
The bizarre thing is once the house is 10 years old lenders will lend again.
Going to do a second viewing and mull it over.
The Council Building Control tell me they signed off the build in 2002. I am going to see if I can get a copy of the certificate for the exact date so at worst sometime in 2012 it would be mortgageable again. Does anyone have any experience / costs of getting an Architects Certificate / Zurich Municipal Certificate - or are these for brand new houses only?
Vron said:
The Council Building Control tell me they signed off the build in 2002. I am going to see if I can get a copy of the certificate for the exact date so at worst sometime in 2012 it would be mortgageable again. Does anyone have any experience / costs of getting an Architects Certificate / Zurich Municipal Certificate - or are these for brand new houses only?
I have to agree with the quote above this,Now im not too sure how much rules have changed, I purchased my current property last August as a repo and gained a mortgage through Abbey. It was a 3 year old build and to the best of my knoledge no paperwork came present.
I am now in the process of selling and although the Solicitor is having to obtain the required paperwork it hasn't posed as to much of a problem.
Way you have to look at this is if one of the major house building companies went bust, would this then mean that everything they had built in the past ten years would be deemed unsaleable (possibly thousends of homes) due to lack of warranty? Dont think so.
Edited by ineedagallardo on Wednesday 7th October 17:26
ineedagallardo said:
Vron said:
The Council Building Control tell me they signed off the build in 2002. I am going to see if I can get a copy of the certificate for the exact date so at worst sometime in 2012 it would be mortgageable again. Does anyone have any experience / costs of getting an Architects Certificate / Zurich Municipal Certificate - or are these for brand new houses only?
I have to agree with the quote above this,Now im not too sure how much rules have changed, I purchased my current property last August as a repo and gained a mortgage through Abbey. It was a 3 year old build and to the best of my knoledge no paperwork came present.
I am now in the process of selling and although the Solicitor is having to obtain the required paperwork it hasn't posed as to much of a problem.
Way you have to look at this is if one of the major house building companies went bust, would this then mean that everything they had built in the past ten years would be deemed unsaleable (possibly thousends of homes) due to lack of warranty? Dont think so.
Edited by ineedagallardo on Wednesday 7th October 17:26
The Estate Agent acting for the sale has told me no lender is going to touch it - I can only quote the Woolwich as they are who I am currently with. The Sale did fall through in August and £30K has been knocked off the advertised price since so (I am guessing) lending through normal high st lenders could be an issue.
The 10 yr cut off is daft but its a hard fact. Most house builders use the NHBC scheme, so if they go bump the NHBC still back it up. Smaller builders use Zurich like schemes or Archictects sign off to allow a sale to happen
You cannot do it retrospectively after the build either, has to be done during construction, and its also daft that a sign off from Building control carrys no weight either
Might be worth contacting the NHBC or Zurich just in case the builder did use them but the cert has been lost
Now im not too sure how much rules have changed, I purchased my current property last August as a repo and gained a mortgage through Abbey. It was a 3 year old build and to the best of my knoledge no paperwork came present.
I am now in the process of selling and although the Solicitor is having to obtain the required paperwork it hasn't posed as to much of a problem.
Way you have to look at this is if one of the major house building companies went bust, would this then mean that everything they had built in the past ten years would be deemed unsaleable (possibly thousends of homes) due to lack of warranty? Dont think so.
You cannot do it retrospectively after the build either, has to be done during construction, and its also daft that a sign off from Building control carrys no weight either
Might be worth contacting the NHBC or Zurich just in case the builder did use them but the cert has been lost
ineedagallardo said:
Vron said:
The Council Building Control tell me they signed off the build in 2002. I am going to see if I can get a copy of the certificate for the exact date so at worst sometime in 2012 it would be mortgageable again. Does anyone have any experience / costs of getting an Architects Certificate / Zurich Municipal Certificate - or are these for brand new houses only?
I have to agree with the quote above this,Now im not too sure how much rules have changed, I purchased my current property last August as a repo and gained a mortgage through Abbey. It was a 3 year old build and to the best of my knoledge no paperwork came present.
I am now in the process of selling and although the Solicitor is having to obtain the required paperwork it hasn't posed as to much of a problem.
Way you have to look at this is if one of the major house building companies went bust, would this then mean that everything they had built in the past ten years would be deemed unsaleable (possibly thousends of homes) due to lack of warranty? Dont think so.
Edited by ineedagallardo on Wednesday 7th October 17:26
Done the second viewing today and reckon the house needs c£50K spending on it. The roof is in a poor state of repair, needs kitchen, windows, bathrooms x 2 - everything really. We were the only ones who took a ladder and a torch to have a look properly! Anyway, the Agent tells me there has been an offer submitted. They won't tell me the amount (which is bizarre as they will have to put an ad in the paper anyway) or the position of the other bidder. I am going to make a bid Monday 35K under the advertised price for cash with a completion in 14 days and see what they say.
Gassing Station | Homes, Gardens and DIY | Top of Page | What's New | My Stuff