offer on repo house - referred?

Xinpei

Hi there,
My husband and I put an offer of £122000 in on a 3 bed detached house which was up on the market for £137950. When we first viewed the house, the EA said 'they' will probably take an offer between £125 to £130K. There is quite a bit of work to be done in the house - decor throughout and some brick (salt) issues.

The offer was put in on the 23rd Dec and the EA said it has been refered. What does this really mean? Who has this offer been referred to? Who is the ultimate person to accept the offer - the bank who reposssesed the house or the credit management (if that is what you will call them?)? Does anyone have an idea about the time scales for this process - how long does it take for 'them' to consider this offer?

As you can probably tell, I am quite clueless - we're first time buyers. Is this a good point to bring in the solicitor to act on our behalf? Could the bank want us to use a solicitor that they are familiar with? I.e. is that standard procedure with repo homes?

The EA said the second offer (which this one is) on a property should be the best and final offer - does this mean we cannot put another offer should this one be refused? We really like the house - been to see plenty and this is the only one we liked enough to put an offer in but I think if we can't find another suitable house, we may put a slighter higher offer.

Thanks for any opinions, they're much appreciated.

hethmar

Hi, they have to refer it to the vendors - whoever ultimately has the deeds of the property, bank, finance association etc.

How long it takes depends on the number of people putting in offers and their status.

As a first time buyer, able to proceed immediately you are in a good position. An offer a few thousand above yours but by someone with a house to sell would not be the best offer.

Just wait a while - probably you wont hear anything til the New Year now as people will be on their xmas break. But you should get a mortgage offer in principle for the amount you need to borrow NOW. If you dont then the agents will not be sure that you will be able to. You could also find the name of a solicitor who you want to instruct as you will also be asked for that information.

When a repo is being sold, the agents will put a notice in a local paper for 7 days saying what offer they have received and inviting higher offers. Up to exchange of contracts someone can increase the offer on the house - that doesnt mean they will get it, it would depend on how far on you are with your purchase (thats why you should get the mortgage offer in principle immediately and proof of same) and what the other persons situation is.

besonders1

Making an offer for a repossession took me 4 weeks before I got word about an offer, and it took endless phone calls to the EA to find out. If you are making an offer below the asking price they often may not get back to you at all. In my case the mortgage company rejected my offer and even a higher offer on the house from another buyer (was not worth it anyway as it was water damaged and had not been lived in). They also may put it up for auction if they can't get full asking price for the item as well as the advert in the paper. You'll find that it is difficult to negotiate with the mortgage company when buying a repossession as they all seem to take their time to get the highest price but I would imagine that things may change when hundreds more homes get repossessed later on next year.

Xinpei

yikes, that doesn't sound too good. Our EA has been rather good but you'll never know I guess. Will try ringing again tmr when their office opens. this property has been on the market for 3 months and we're told its not been under offer yet. It has also been recently put up with another EA (one week before) - could this be an indication of the seller wanting to push a sale through asap?

hethmar

As I understand it from previous postings on here by an EA - the norm is for the bank/finance co to give it to one EA to market. If it doesnt sell within a certain time they then pass it to another EA - if this still doesnt produce a buyer it would go to auction.

Try not to worry, if they havent had an offer for 3 months Id have thought they are likely to want to take yours but get evidence of your financial situation ready now including the mortgage offer in principle.

poppysarah

Don't increase your offer.

That's what they want you to do.

MX5huggy

Xinpei wrote: »

yikes, that doesn't sound too good. Our EA has been rather good but you'll never know I guess. Will try ringing again tmr when their office opens. this property has been on the market for 3 months and we're told its not been under offer yet. It has also been recently put up with another EA (one week before) - could this be an indication of the seller wanting to push a sale through asap?

The EA is not yours he does not work for you because you don't pay him he wants you to pay the highest price possible for the property he is marketing.

besonders1

MX5huggy wrote: »

The EA is not yours he does not work for you because you don't pay him he wants you to pay the highest price possible for the property he is marketing.

I find that whoever makes the highest offer, get treated like gold until they get outbid then the attention moves onto the next person.

vwornoutmum

we put offer in and heard back same day as offer not enough so increased offer which went to the management co then they passed it onto their client who accepted we were told the next day. We instructed the Solicitor the day we got the offer accepted check that they understand you're buying a repo and that you need to exchange contracts within 28 days.
I was in our EA (EA that sold our house) somebody came in asking about a repo and she said to them that the house was already under offer and they would have to put in a substationally higher offer before the Vendors would consider most EA's just want one buyer with the funds so it all goes through quickly and they get paid.

never_enough

As hethmar says an ad will go in the local paper saying an offer of £XX has been received on XX High Street, Highville asking anyone who want to offer more to do so within 7 days. If they do, it could then go in the paper again to do the same thing. You have to hold your nerve buying a repo & be pushy to get exchanged asap.

hethmar

In reality, unless a new buyer jumps in waving a wad of cash its very unlikely the vendor would change mid transaction. Good luck.