what to offer to get the house?

shamo

Hi really fallen in love with a detached repossession house that is in need of kitchen, bathhroom and boiler. It's on for 269k but was on the market 18months ago for 350!! I rang the estate agent and put in an offer of 230k she practically put the phone down on me saying it was along way off several other offers. Her attitude stank but that's estate agents. Is there a tactical angle we could approach this from? I heard one piece of advice which was to put in a really high offer to clinch it then bring it down later when the paper work is going through. Will this work with a bank repo??

p.s we are FTB with big deposit.

hethmar

It probably wont work Im afraid, particularly if they know theres been a lot of interest.And youd have to get the mortgage offered on the very high price you put in.

One think to think about - when you say it needs a kitchen and bathroom - do you mean NEW ones or there arent any there? I believe someone mentioned you wont get a mortgage without those two essentials. You could check it out. Or I guess they will just hold back the money until those have been sorted?

When you made your offer did you tell them your situation?

lincroft1710

what to offer to get the house? £269K. Well that's what they're asking - but if you try to gazunder they'll either force you to pay agreed price or refuse to sell it to you.

Airwolf1

Don't forget to get your own Homebuyers or full building survey done as well, just in case there are further potential problems.

Darth_Marty

Why do people think its ok to go in high then later lower their offer?! Im amazed at the hypocrisy on some of the housing threads, you are extremely critical of agents and banks and repo companies then you wonder why? That tactic will almost certainly never work and in the cases it would (no other interest in the property) you would have been better off negotiating better at an early stage.
ha ha its quite amazing really.

Airwolf1

You can put in what offer you like, although as said above, it isn't nice someone being messed about by later lowering your offer.

Who knows, the EA may need more commission from the sale, hence trying to get you to offer more? I'm sure they have to pass the offer on anyway.

hethmar

Airwolf, I think one of the EAs on here said they are given a minimum price to look for and dont pass on anything under that for repos.

Airwolf1

Thanks for that hethmar.

So the question is then surely the minimum price on a property for sale at £269 must have a lower threshold than £230k, considering the current climate?

I guess it depends on how much money the bank needs in this case, but I would have thought that any offer (within reason) is better than not selling.

Darth_Marty

Airwolf1 wrote: »

Thanks for that hethmar.

So the question is then surely the minimum price on a property for sale at £269 must have a lower threshold than £230k, considering the current climate?

I guess it depends on how much money the bank needs in this case, but I would have thought that any offer (within reason) is better than not selling.

If the property was originally on for 350k then the 269 marketing price is already a reduced one surely.

And remember that whatever debt is outstanding after this sale, if any, still has to be paid back by the original mortgagee so all parties need to get the best possible price.

At the end of the day anybody buying a house can find out what the house is worth simply by seeing what comparable properties have sold for recently, https://www.nethouseprices.com, https://www.rightmove.co.uk and a plethora of other sites can all help you in finding comparables.

LisaLou1982

Hiya

Just a quick question - why are you offering 230k on a property that is being marketed at 269k when you know it has already been substantially reduced? Maybe you mistook the EA's bluntness for rudeness? I too would let you know that substantially higher offers had come in on the property too. This avoids wasting their time and also giving you false hope that such a low offer would be accepted.

If you mess the company around they will pull the sale from you - they all have a figure that they can take so please dont waste everyones time (including your own) with upping and then lowering offers. This will end up costing you money in the long run

Make an offer to what you feel the house is worth to you. Only you know how much you want to spend. Although your position as a FTB is a good one, remember that a repossession company is out to get the most money they can for their client. You might also find it beneficial to keep in regular contact with your EA. If they see you as a genuine motivated buyer then they (should!) keep you updated with any progress on the sale.

Good luck with your purchase

pinkshoes

When was it last sold, and what did it go for? If they were asking £350k and it's been dropped to £269k, then perhaps it's been priced sensibly to sell?

What have other similar houses sold for?

To go in high then intentionally drop the price at the last minute is the action of an ars*hole! It's a shame house buying isn't like ebay, where people who do that get a "strike" against their name!