buying a bank repossesion property.

shamo

Hi all, was looking for some advice as things aren't as sraeight forward with property now since the crunch (if they ever were!!)

I am looking at a repossesed property on the market for 269,000. It's wrecked inside with all fittings torn out and in need of boiler, kitchen, bathroom and some other cosmetic repairs. If the house were in good nick i'd say 269,000 was a very good price but as it stands it needs a fair bit of cash spending. My question is this; will they have priced this property to sell or do you think cheeky offers will be considered? (considering the market)

It's very difficult to gauge value as it's the only detached house on the street. I intend to offer 230,000 as a FTB with mortgage in principal and 76,000 deposit. Any tips??

Riq

Definitely go in with an offer, if you don't blush making it then it isn't low enough

poppysarah

No kitchen or bathroom means no mortgage usually. Cash buyers only.

The_Banker_5

I would go in with a low offer. And I mean low.

It all depends on how much is outstanding on the mortgage as to how much they will accept though.

poppysarah

The_Banker wrote: »

I would go in with a low offer. And I mean low.

It all depends on how much is outstanding on the mortgage as to how much they will accept though.

I know of mortgages owing 95k and they're asking for 62k on an EA.

They will be after a quick sale for as much as they can get. If they have more than one person interested in it, they'll put up more of a fight for the cash.

The_Banker_5

poppysarah wrote: »

I know of mortgages owing 95k and they're asking for 62k on an EA.

They will be after a quick sale for as much as they can get. If they have more than one person interested in it, they'll put up more of a fight for the cash.

Ive viewed a few repossesions before and they were gutted. Sometimes (not all) the previous owners just trash the place for the sake of it.

edgex

There are 2 ways it could go:

you might not be able to get a mortgage on the property, as its basically an empty shell, & not re-sellable by the bank

you get a mortgage, paid out in stages on the basis of certain works being completed, the same as a self-build mortgage


Could you realistically refit the place for £39000?

Work always goes over budget.
Also, what if it was worth 10% less? That gives you £29k to play with.

mrs_baggins

if you put an offer in for a repossession are you expected to complete in a very short time usually? say 28 days? from what I have read but I may be wrong you could put an offer in, get a survey and could still be outbid? is this how repo's work?

besonders1

I looked round a repo house that went on the market at just below boom price and the previous owner's ex husband still had a set of keys the property and as the buyer was almost through to completing the sale, he went in, trashed the place causing thousands of damage for fun, and tuned the water back on and caused a flood bring all the ceilings down. If you are interested make sure you keep viewing it or driving past it everyday before you exchange. I would say though at 269K is certainly not a bargain for its condition that you say it is. You would need around 20K or more to put it back to a habitable condition which you are guaranteed to lose when the prices go down further. Cab you not look at a repo in a better condition?

hethmar

Yes mrs baggins you are correct. An offer is accepted and then advertised for 7 days - you can be outbid right up to exchange.

GDB2222

shamo wrote: »

It's very difficult to gauge value as it's the only detached house on the street. I intend to offer 230,000 as a FTB with mortgage in principal and 76,000 deposit. Any tips??

Well, you are not going to like this tip, but I would strongly advise against buying the most expensive house in the street. Or, at least, I wouldn't pay much more than the average for the street as a whole.