Repossession, 2 offers, we need to submit our final offer

littlened

We put an offer in on a repossession of 80k, the house is on the market for 85950.

There's been another viewing on the property yesterday, and they've put an offer in similar to ours. We've now been asked to submit our final offer (what we're willing to pay).

My only worry is that there's not another offer, and we could increase our offer to say 90k for no reason.

I assume this is just the risk we have to take?

besonders1

Thats the problem you just never know. I am in the same situation with buying a repo and I have been tempted to bid again. Why don't you increase your offer to 100K to reserve the house then, drop your offer to 79K at the last minute to scare away the "rival buyer" by then the house would have dropped to about that level anyway.

pawpurrs

Yes unfortunetly it is, there is nothing stopping you from not increasing if you dont want to, just say that is your best offer.
Or increase to your best offer if it isnt and hope that you get it, basically they are just trying to get the best price they can, and they have to be seen to have done that if its a repo.
Just offer your best offer and hope for the best.

Jorgan_2

Will the agent have to submit a public notice once the 'best' offer has been accepted? Not all repossessions have to have this, so check, don't assume. If so, you could wait until the notice appeared and then submit another offer if you wanted to.

If you decide just to go with an increased offer, make it an odd amount. Many people work in multiples of £250 at this stage, so £81,250, £81,500, £81, 750 for example. So if you are thinking of offering £81,500, it may be worth offering £81, 678 in case the other buyer offers £81,500.

Mutton_Geoff

An offer is not just about price. You could make a promise to complete by a certain date that may be more tempting that £££'s alone to the sellers.

littlened

Mutton_Geoff wrote: »

An offer is not just about price. You could make a promise to complete by a certain date that may be more tempting that £££'s alone to the sellers.

With the christmas period approaching, it's difficult to give timescales though

besonders1

When making your offer don't be fooled think about, where will these rival buyers be getting the money from?, it is unlikely many FTB's wound have over 90K in savings and BTL landlords wouldn't want to invest in a house that would drop to say 60K later on unless there are stupid. The only way you will know if the buyers are genuine is to check to see if the sold sign goes up on the house then outbid them later on.

Jorgan_2

The sold board should only go up when contracts have been exchanged, so there won't be any chance to outbid anybody. (not meant to frighten the OP into upping their offer, just stating how many repo sales are dealt with)

Usually they will only go for best and final offers when two buyers are in a very similar position, i.e. no chain.

hethmar

Depends on how much you want the place. I dont think EAs are lying - there is a lot of interest in repos because people see them as bargains. However, its not the highest offer but the best offer in terms of likelihood the deal will go to completion. So if you have all your mortgage, deposit etc. in hand you will be looked upon favourably even if the other people bid a bit higher than you if they arent so well placed to proceed.

littlened

We've increased our offer, we'll see how it goes.

hethmar

Good luck