100% cashbuyer to buy reposession

Wanderer_Yorkshire

Hi,

I am about to make an offer on a reposessed house. I am a 100% cashbuyer. The house was sold for around 75k in 2006 and is now on the market for 67k. How much of a reduction in price can I expect, considering it is a reposession and its been on the market for 2 -3 months?
To be honest I cannot afford the asking price but then again I am a cash buyer so I hope that this will help considering its a reposession. However will the banks be willing to take a reduction? I have heard that the an offer of 10 - 15% below asking price is norm now? I am a first time buyer and any help would be much appreciated!!

sarah_elton

No harm in making a cheeky offer of £50-55k. Unlike an emotional homeowner they're unlikely to get upset by it and refuse to listen to further offers. Emphasise CASH and QUICK SALE heavily (say you'll complete in X weeks).

Jorgan_2

Whats the property worth to you? There is no hard and fast rules when dealing with repo's, completed on the sale of one last week that was 25% below the asking price. Another one I'm selling has had an offer 3% below the asking price rejected. If you are a true cash buyer, they may request you complete in 14 or 21 days.

Premier_2

They'll want any potential buyer to complete within 28 days max from the time the offer is accepted. They can get this by taking the property to auction. Anyone placing an offer will be expected to be able to prove they can achieve this before any offer is entertained.

What's the value to them if you could complete in say 3 weeks because you have cash in the bank? 7 days less interest. On a price of £67k that equates to about £84 based on a typical 6.5% mortgage rate

If you want to offer less, offers of between 95% and 100% off offer price is now the norm. Now you've heard that, will you use it in your negotiations???

lonestar1

Because its a repo the mortgagee will also need to advertise your offer and invite higher ones (This ia a legal thing whereby they have to try and get the best deal for the property)

Obviosuly if they think they will get a higher bid at auction then to the auction it will go

hethmar

It was a cheap house to start with wasnt it!

jmt

lonestar1 wrote: »

Because its a repo the mortgagee will also need to advertise your offer and invite higher ones (This ia a legal thing whereby they have to try and get the best deal for the property)

Obviosuly if they think they will get a higher bid at auction then to the auction it will go

This is usually the case, but if you have been watching the auctions recently a lot of property is not even reaching the reserve.

I offered on a repo as a 100% cash buyer back in January (on sale for £89,950), my offer of £70,000 was declined and went to auction in April - the property sold for £67,000. (I did not go to auction as I was on holiday)

I then watched as the property was then put back up for sale with same agent by new owner £85,950 - I again offered £70,000 and new owner said no - he still has it on the market (twice under offer but fallen through) and now on market for £65,000.

The estate agent has been back to me twice to see if I am interested, but although I still have money I am waiting to get a REAL bargain.

Why not make an offer 15% below and if you feel you can wait, let it go to auction, you may just get it cheaper.

andrewmp

I would offer £40,000 if I was a cash buyer.

Jorgan_2

lonestar1 wrote: »

Because its a repo the mortgagee will also need to advertise your offer and invite higher ones (This ia a legal thing whereby they have to try and get the best deal for the property)

I don't believe it is a legal requirement to post a public notice, I know of several repossession sales where a public notice has not been required.

zzzLazyDaisy

You probably wouldn't have seen the notice - they are usually in tiny print tucked away in the classified of some small local newspaper

milkybars

You just have to have a go at offering a lower price for it. Obviously by selling the house they are looking to recoup losses... but there may be some flexibility.