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Buying a Repo and being gazumped!
helbo_2
Posts: 4 Newbie
HELP!
We are trying to buy a repo. Sellers price 400k. Been on the market a year with no offers and no interest (6 viewings!). The house is underpinned.
We placed an offer back in september 08 for 300k It took 6 weeks for them to finally agree to sell it to us for that price. It went in the paper and immediately another offer came in from an apparently exsisting client from the other EA the property was on with. Our EA found out that we had been gazumped by 9'500k, so we put in an offer of 310k. We got the ball rolling with mortgage, solicitors etc. 2 weeks later we get gazumped again by same people. We are told by our EA that these people went into our EA and said they didnt like their EA and wanted to offer through our EA instead and that they wanted to offer 320K, they apparently were told they had to speak with their EA. So we are advised that we should offer 325k (which we then did). 2 weeks later we get a phone call saying that we have been gazumped again but that they managed to find out how much and the other party were offering 328k. I cried! I said we'd match it. We then get told we have been accepted. 2.5 weeks later I go and look around the property, on my way out with the estate agent, he gets a call from his manager to say that we have been gazumped again but they have been told to see if we can match their offer of 330k. I'm hopping mad at this point and say no chance!. I am then told that the house will not be sold to us.
I then go looking for other houses. One house I liked was being sold by the other EA that was gazumping us. When I speak to the manager and he tries to get me to view the house. I then tell him that I am not dealing with their EA as they have helped to ruin our dream of buying the house we wanted. He then tells me he will call his clients and then give me a call back. 1 hour later I get a call from this EA who says that his clients no longer want the house and that we can buy it again. Confused?? So am I! Why would he try and help me, when he had the opportunity to sell me a house that he had on the market? He makes no attempt to book a viewing for this other house.
On speaking to the solicitor I am advised that they are still aware that they are selling the house for £325k and no other interested parties. The solicitor informed me that the two estate agents are run by the same corporate sales team but just work independantly as two seperate EA's
Now here are my questions. Do you think this is one big scam to get us to up our bid? Do you think we are being played? We are days away from exchange, is it worth considering gazundering them, or would this put them off selling it to us (or take weeks for them to make a decision). If we gazunder we may be at risk of loosing the house if these are genuine other people. If we do gazunder they may think that we will still go back to our final price. Its hard to know what to do, and any advice would be great!
We are trying to buy a repo. Sellers price 400k. Been on the market a year with no offers and no interest (6 viewings!). The house is underpinned.
We placed an offer back in september 08 for 300k It took 6 weeks for them to finally agree to sell it to us for that price. It went in the paper and immediately another offer came in from an apparently exsisting client from the other EA the property was on with. Our EA found out that we had been gazumped by 9'500k, so we put in an offer of 310k. We got the ball rolling with mortgage, solicitors etc. 2 weeks later we get gazumped again by same people. We are told by our EA that these people went into our EA and said they didnt like their EA and wanted to offer through our EA instead and that they wanted to offer 320K, they apparently were told they had to speak with their EA. So we are advised that we should offer 325k (which we then did). 2 weeks later we get a phone call saying that we have been gazumped again but that they managed to find out how much and the other party were offering 328k. I cried! I said we'd match it. We then get told we have been accepted. 2.5 weeks later I go and look around the property, on my way out with the estate agent, he gets a call from his manager to say that we have been gazumped again but they have been told to see if we can match their offer of 330k. I'm hopping mad at this point and say no chance!. I am then told that the house will not be sold to us.
I then go looking for other houses. One house I liked was being sold by the other EA that was gazumping us. When I speak to the manager and he tries to get me to view the house. I then tell him that I am not dealing with their EA as they have helped to ruin our dream of buying the house we wanted. He then tells me he will call his clients and then give me a call back. 1 hour later I get a call from this EA who says that his clients no longer want the house and that we can buy it again. Confused?? So am I! Why would he try and help me, when he had the opportunity to sell me a house that he had on the market? He makes no attempt to book a viewing for this other house.
On speaking to the solicitor I am advised that they are still aware that they are selling the house for £325k and no other interested parties. The solicitor informed me that the two estate agents are run by the same corporate sales team but just work independantly as two seperate EA's
Now here are my questions. Do you think this is one big scam to get us to up our bid? Do you think we are being played? We are days away from exchange, is it worth considering gazundering them, or would this put them off selling it to us (or take weeks for them to make a decision). If we gazunder we may be at risk of loosing the house if these are genuine other people. If we do gazunder they may think that we will still go back to our final price. Its hard to know what to do, and any advice would be great!
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Comments
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If the other 'buyer' who was bidding against you is no longer interested, I would go back to your initial £300K bid. The only downside is that the seller and EA know that you were prepared to pay more.0
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They've been very evil, so they deserve to be gazundered. But you have to be prepared to follow through at some price - are you willing to take a chance of losing the house to save £10k or £20k or £25k?
Average prices dropped another 2% last month, which is over £6k on this property, so you have a good reason for dropping the price.
Regards0 -
It's really very very very simple. You offer a price for the house that you are happy to pay. End of!! You are seeing the property as an investment not a home.
For what its worth I was in the exact situation in '93 buying a repossession. It had been empty for 2 years and the bank wanted rid of it quickly. We put an offer in; it was accepted, EA comes back and says other party interested and has offered £1000 more, we increase by £1000, they increase by £1000, finally the EA stops disclosing the other parties offer. We increase by £1000, EA comes back and says other party has increased their offer. Umm I wonder if it was a £1000??
So I basically sat down with my girlfriend and said how much do we like this property and what are we willing to pay. We agreed a price together, which was considerably more than a £1000 increase on the current offer, put if forward and now I am sitting in the living room of it, having seen it increased 400%.
The only difference to your situation is that when we bought at the back end of '93 the market was turning the corner. Today we still have some way to fall.
So suspecting that the EA may have played dirty with you I would offer 270k (ish) You have the upper hand, especially given that prices are still falling.
BUT If you really do want this property and can overlook the antics of the EA or really believe there are other parties involved, then you pay what is worth to you. Its going to be a HOME.0 -
Hi
When a repossession comes up for sale it is common practise that it must be advertised at the price accepted with a public notice to be made which states that anyone wishing to make a higher offer must do so before exchange of contracts.
Unfortunately, due to this, someone else has seen your offer and decided to offer more. We are now in a market (and a world for that matter!!) where people see something, they decide they want it, and then think about it a bit more and then change their mind.
The estate agent does not care how much you will pay for the property - its on with a corporate client. The corporate client calls the shots. If someone offers more then usually they will go with the highest offer. You will often find that a repo is on with 2 agents - this is because the corporate client wants to get as much exposure as possible.
As mentioned in a previous post, decide how much you want the property and how much it is worth to you. I work as an EA and can tell you that if the corporate client thinks you are messing around then they will pull the sale from you - ive know this happen even without another buyer being present. If you genuinely feel that you want to reduce your offer as (maybe) you feel you are paying too much (although if this property was on @ £400k and you are buying it for £328k then i think you have got a great deal) then do so. Keep on the side of your EA - they will be the people battling to keep the sale together for you and they are the ones that report back to the client to tell them whether you are reliable or not.
If its your dream home then buy it - you will be on a 28 day exchange anyway so get everything done that you need to do to get it exchanged.£2 Savers Club #156!
Looking for holiday ideas for 2016. Currently, Isle of Skye in March, Riga in May, Crete in June and Lake District in October. August cruise cancelled, but Baby due September 2016! :j0 -
So helbo, what happened?0
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ooh yeah Im positive the EA was playing you. They are mean when it comes to repos! What happened in the end?
:ABeing Thrifty Gifty again this year:A
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