Buying a repossessed home?
Discussion
Ive been looking for a second home for nearly a year now and not found exactly what I want for the money Ive got, but yesterday I viewed a repossessed property that ticks all the boxes.
Now of course I can sense a bargain but what are the pitfalls of this kind of purchase?
Has anyone done it and wished they hadn't?
Now of course I can sense a bargain but what are the pitfalls of this kind of purchase?
Has anyone done it and wished they hadn't?
Druid said:
Ive been looking for a second home for nearly a year now and not found exactly what I want for the money Ive got, but yesterday I viewed a repossessed property that ticks all the boxes.
Now of course I can sense a bargain but what are the pitfalls of this kind of purchase?
Has anyone done it and wished they hadn't?
Over the years I have purchased several repossessed properties, all at auctions, and never had a problem.Now of course I can sense a bargain but what are the pitfalls of this kind of purchase?
Has anyone done it and wished they hadn't?
The waster and heating systems may be drained down, but that's not a big issue.
In rare cases the previous owner may have left a vengeance, i.e. drilled a pipe so it leaks when the system is turned back on.
There are also usually clauses about selling again within 3 months of purchasing
I believe that most sold through estate agents are kept as open to offers until exchange (in order to get the best possible price)
Overall, I'd spend a bit of time researching them on the web, but I woudlnt' hesitate to buy one myself and probably will do at some point. Good luck!
In rare cases the previous owner may have left a vengeance, i.e. drilled a pipe so it leaks when the system is turned back on.
There are also usually clauses about selling again within 3 months of purchasing
I believe that most sold through estate agents are kept as open to offers until exchange (in order to get the best possible price)
Overall, I'd spend a bit of time researching them on the web, but I woudlnt' hesitate to buy one myself and probably will do at some point. Good luck!
And you might have to deal with the odd letter or visit from a debt collection agency who will need to be happy you are not the previous owner.
As has been said already no reason not to purchase, just go in with your eyes open. On the plus side you won't have a problematic vendor who can't or won't move for reasons further up the chain. It's a very clean transaction because the people selling have no emotional attachment and do it every day of the week.
Henry
As has been said already no reason not to purchase, just go in with your eyes open. On the plus side you won't have a problematic vendor who can't or won't move for reasons further up the chain. It's a very clean transaction because the people selling have no emotional attachment and do it every day of the week.
Henry
Thanks for the replies.
I have discovered more detail. The house was repossessed after the owner was killed in a motoring accident. The house was occupied by his mother who unfortunately had to leave. Which probably explains why the house is in such good nick and hopefully relinquished without 'vengeance'.
The offer if accepted will be advertised just once in a local paper and I will have to complete within 28 days.
Is there a rule of thumb in relation to my opening bid, it's advertised at 17% below the market value?
I have discovered more detail. The house was repossessed after the owner was killed in a motoring accident. The house was occupied by his mother who unfortunately had to leave. Which probably explains why the house is in such good nick and hopefully relinquished without 'vengeance'.
The offer if accepted will be advertised just once in a local paper and I will have to complete within 28 days.
Is there a rule of thumb in relation to my opening bid, it's advertised at 17% below the market value?
offer what you think is it worth in the current climate and not what you are willing to pay.
the agent has to submit all offers to the seller.
i bought a reposession last year. i offered what i thought it was worth and the agent did not submit my offer as it was lower than earlier offers (7 months prior) they tried to get my max budjet out of me after i offered what i thought it was worth. i did not tell them "what i wanted to spend" but kept increasing the offer until they decided to submit it.
it was submitted and accepted, my earlier offers may have been accepted if they were actually submitted to the seller but the estate agent wash pushing hard for the best price. I ended up getting it for 5k less than what i wanted to spend but the property was not in the condtion that the advert described and needed a few k's throwing at it.
the public notice period is a killer. i so badly wanted my house i just panic'd thinking someone would see my offer, think it was too cheap and put a better offer in.
best of luck
the agent has to submit all offers to the seller.
i bought a reposession last year. i offered what i thought it was worth and the agent did not submit my offer as it was lower than earlier offers (7 months prior) they tried to get my max budjet out of me after i offered what i thought it was worth. i did not tell them "what i wanted to spend" but kept increasing the offer until they decided to submit it.
it was submitted and accepted, my earlier offers may have been accepted if they were actually submitted to the seller but the estate agent wash pushing hard for the best price. I ended up getting it for 5k less than what i wanted to spend but the property was not in the condtion that the advert described and needed a few k's throwing at it.
the public notice period is a killer. i so badly wanted my house i just panic'd thinking someone would see my offer, think it was too cheap and put a better offer in.
best of luck
If you offer, provide the agent with as much info as possible. The Repo company (acting for the bank) will want to see proof of deposit (bank statement, letter from solicitor) proof of funds (AIP etc) solicitor details.
Once an offer is accepted it will run with a 7 day notice or a public notice (however some banks dont ask for one)either in a local paper or on rightmove.
The property will be available for viewings and offers up until exchange. The quicker you can get to exchange the more chance you have. Choose a good solicitor and explain the situation to them.
In terms of offers, I'm biased if i say asking price! but it will probably need to be as close as possible as they will offer it below market value to get it sold. Theres not always a lot of room to negotiate.
Once an offer is accepted it will run with a 7 day notice or a public notice (however some banks dont ask for one)either in a local paper or on rightmove.
The property will be available for viewings and offers up until exchange. The quicker you can get to exchange the more chance you have. Choose a good solicitor and explain the situation to them.
In terms of offers, I'm biased if i say asking price! but it will probably need to be as close as possible as they will offer it below market value to get it sold. Theres not always a lot of room to negotiate.
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