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Advice on buying a house that has been repossessed?
claire1978_2
Posts: 24 Forumite
I hope im posting in the right place
Does anyone have advice about buying a property that has been repossessed?
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Does anyone have advice about buying a property that has been repossessed?
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Comments
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Apart from underestimating cost of any remedial works necessary, checking that any water/ch pipes haven't been cut through so there's a flood when water/ch turned on, property overpriced as lender is owed more than it's really worth, changing all locks if you buy and ability to convince anyone who knocks at your door that you're not previous owner, can't think of much I'm afraid.If you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales0
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lincroft1710 wrote: »Apart from underestimating cost of any remedial works necessary, checking that any water/ch pipes haven't been cut through so there's a flood when water/ch turned on, property overpriced as lender is owed more than it's really worth, changing all locks if you buy and ability to convince anyone who knocks at your door that you're not previous owner, can't think of much I'm afraid.
Thats a great start, thank you, any more advice anyone? its been on market since january, that should help me negotiate a good price? am arranging for a builder to take a look for me.0 -
Actually, although some consider this to be good practise whenever they purchase a property, the arguement for doing so with a repossession is not so strong.lincroft1710 wrote: »Apart from ... changing all locks if you buy ...
The locks would already have been replaced by a locksmith acting on behalf of the bailiff when the property was repossessed. This is done to ensure the original owners cannot re-enter the property.
Probably of greater importance is that some locks may not be supplied with any keys. You'll often only get keys to the locks that were replaced so keys to e.g. window locks may not be supplied."Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 20100 -
have viewed again with a builder, locks have been changed, the whole house needs redecoration, new flooring, some built in cupboards to remove, new bathroom.
its on for around 120000, marketed in dec 2007,
now the big question how much should I offer? any thoughts?0 -
I would suggest you offer what you think it's worth in it's present condition.
As there doesn't appear to be any competition at present, there's no point offering more than the asking price to start with.
Be aware the asking price was set based on it's believed value in it's current condition, not the price it would be worth once all the remedial work has been carried out.
So you need to decide what the value will be once all the work has been completed, subtract from that the cost of doing the work and decide from there how much profit you want to make in exchange for doing that work."Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 20100 -
spoken to the estate agent, he said that he valued it at 105,000 when they first put it on market in december last year, but the motgage company insisted on over 120, 000
I bought my house in same estate 2 and a half years ago, slightly smaller for 100,000
i think it will take 10 grand to make it ok, now considering the recent price drops im not sure what a true valuation for the property is and how cheeky to be, then again they can only say no i suppose?
thank you for replying to me btw!0 -
Having just bought a repo to live in recently then the mortgage company will want someone that is chain free and able to stump up the cash within a month of the offer being accepted. They will also continue to market the property until exchange which can mean you could be gazumped at the last moment. Most Estate Agents when they have a firm offer will try and discourage other viewers if your offer is reasonable and the best they think they could probably get in the current climate.
What have other similar properties sold for recently? What are others being marketed at? If it has started out at 120k then they'll probably want 100k+ if it has started out much higher then I suspect they'll settle for only close to the 120k. You can only offer what you think it is worth. Just noticed that the EA thought it was worth 105k when originally marketed. I'd then say offer about 90-95k if you think that is reasonable. They can only say no. Wait it out as they may change their mind if no-one else comes along.
Watch out with gas and electricity as if they have been cut off it can take a while to be reconnected. If the gas meter has been taken and the pipes cut then you'll need national grid to resupply gas (£500 or so) and then you'll need a meter from a supply company. This could add 6 weeks to how long the house will take to be habitable. If the gas was with British Gas then you'll have a fight as they are utterly incompetent. Get a corgi person to come round and inspect and reinstate the plumbing and heating. Also it's probably wise to get an electrically competent person to check the wiring.
Repos are generally sold as seen so if there is anything substantially wrong with it you'll have little come back as you can find it takes too long to get a survey back before you have to exchange.0 -
good pointers teabelly, i did notice the meters are token ones would have to get them changed, have to check out how much that would cost me, the builder looked at the pipes and said all present and relatively new.
Am considering renting my currrent house as market is pretty slow. had rental valuations done. So should be able to move quickly.
EA mentioned that as it is repo they have to advertise that an offer has been made in the local press, so thats not good news. :eek:
smaller but immaculate houses in the same estate are marketed at 102 to 115
I guess its decision time
but i am concerned that the prices have fallen, dont want to pay more than i have to 0 -
claire1978 wrote: »...im not sure what a true valuation for the property is and how cheeky to be, then again they can only say no i suppose?
thank you for replying to me btw!
Take time to have a look at all the estate agents in the local area and work out a value based on similar properties. This is the way an estate agent would value the property - athough they wouldn't have the advantage ogf knowing how much a builder would charge for the reapirs that you obviously now do - perhaps the EA overestimated those costs originally.
I think it's safe to presume that if the seller mortgage company was not prepared to allow the EA to advertise the property for £105k, then they probably won't accept anything less than that - and may only accept more.
If £105k or less would have been accepted, the mortgage company would have allowed the property to be advertised at this price as if it was undervalued the price would have probably have been bid up by 2 or more buyers wishing to pick up a bargain.
The mortgage company is obviously in no rush to sell, as otherwise it would have already have gone to auction."Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 20100 -
what a coincidence
EA says that they will be putting it to auction if not sold before begining of October hmmmmmmmm0
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