buying a repo?

hethmar

Hi, would say Kevin, if you buy through an EA, no 10% deposit is requested at acceptance.

Premier_2

lanerover wrote: »

Please be aware buying these properties has its own rules pitfalls and advantages, some of the main ones being :
price is nearly always negotiatable about 5-10 % down.
Exchange will be expected in about 3 weeks with completion 1 week later so don't even think about it until you have the money in place.
Minimum of 10% deposit will be required the day your offer is accepted (even through an estate agent).
If you don't complete or exchange in the timescale expect to lose your deposit.
You need a solicitor who can work to the above timescales, average ones will not work this fast.
As an investor one other piece of advice: work with estate agents they will be your best source of repossesions I have several agents who ring me 2/3 times per week with these properties.
Finally if you need a solicitor, contact me and I will send details of mine who do these deals every day.
Regards Kevin.

Sorry, but much of what you say is either misleading or untrue.

When purchasing through an EA, prices are negotiable just like with any other property. But be aware that prices can be negotiated upwards as well as downwards, especially if 2 or more parties are interested. Any offer made is often subject to a public notice being placed in a local newspaper (the potential buyer does not pay for this notice)

When buying through an EA, no money changes hands at the offer stage (not in England & Wales anyway). Just like any other purchase, the deposit is paid on exchange. You only need the funding in place for the total property by the time you exchange - your solicitor will not allow exchange without it, just like any other property. It is true that the EA's own financial adviser may ask of details of funding to clarify the reliability of any offer made. They effectively offer a mortgage in principle (assuming a loan is required) but there is no obligation to use the EA's financial adviser to arrange any mortgage - and it's probably best if you don't.

There will be an expectation to exchange quickly and if that fails, the property may be re-marketed (if it's actually been withdrawn - in todays climate the property usually stay on the market until exchange). The contract that is exchanged will specify a completion date -typically a week or 2 after exchange. Failure to meet that completion date would be the same as failure to meet the completion date on any other property.

There is usually no problem finding a solicitor to act in the timeframe you need as a buyer, but best to clarify this with your desired solicitor before you instruct him to act. Normally the roadblock is in obtaining the mortgage - that's down to the buyer to push for not the solicitor.


Buying at auction is different, but no different to buying any property at auction. When the hammer falls you are expected to exchange and pay the 10% deposit, so you need to ensure everything is already in place for that to happen.

hethmar

In the current market, the solicitors should be champing at the bit to do the work and be able to complete in the time frame.