FTB, looking at Repo property.

debtfree_wannabe

Hello!

My fiance and I are FTB. A property has come up that has caught our eye and we have a viewing booked for Saturday. I just need some advice.

The property (a 3 bed semi w/ double garage, and off road parking, utility room, brand new fitted bathroom, dining room, conservatory, central heating & double glazing) is on the market for 79k.

We have been advised that it is a repossession (although we have not yet asked the reasons for the repo - will do on Saturday!). I know it was bought in 2001 (poss off the council) for £25,500. It then sold in 2005 for 120k.

All other properties in the town that are of a similar spec are 105k+. So this comes across as a real bargain. We have yet to see the property, but have been and looked at the outside, and have been told it would be possible to move in straight away as there's not really any work to be done to it.

There has already been some interest in it, and after looking at some threads I've found on repo's, I shall be asking how this one would proceed in terms of notices of intent in the local paper etc.

I'm assuming we will still be quite keen after the viewing to make an offer. We are FTB with a 10K deposit. What do you think is a reasonable and likely to be acceptable offer on a repo? As they are obviously keen to get the best price for it, and have already priced it so that it should sell quickly.

I'm also prepared that we may be gazzumped, and could end up feeling quite stressed and gutted by the whole affair, as it might not work out for us.

What other problems could we face with buying a repo? How much can it cost to re-connect services to the property?

Any advice would be greatfully taken on board!

Many Thanks

Keri

feisty1

Quote:I'm also prepared that we may be gazzumped, and could end up feeling quite stressed and gutted by the whole affair, as it might not work out for us.

Best advice for this or any other property in yr lifetime, don't get emotionally involved, it is only bricks & mortar..............

mandragora_2

Not a lot of detailed advice to offer, as its a long time since we bought our house - 22 years this week, in fact - but it was a repossession. It was a lot of work, there was a sticky moment when the b/s talked about putting it back on the market, but we got there in the end. The couple and their family who'd had to leave it lived pretty chaotic lives (earning far more money than we did at the time, incidententally). When we took possession, the place was a complete tip:eek: , and there was an awful lot of work to do - all of which cost far more than we ever anticipated, despite doing almost everything ourselves. However, I've never regretted it for a moment, and it meant our children had a bigger and nicer house to grow up in than we'd ever have been able to afford otherwise.

Good luck to you, and try not to get too attached. If it's meant to be, it will happen - if not, then it just means that there's something better round the corner for you.

hethmar

My goodness, sounds a bargain all that for £79k - what part of the country is that?

Firstly, if there is a lot of interest you will probably be asked to make a best and final offer if they get a number of people wanting to buy. Its up to you what you offer and as first time buyers you will be looked on favourably. Have you already got a mortgage agreed in principle? If not, do that straight away and have a think about which solicitor you want so you can put that forward aswell if you do get the property.
You probably wont have to pay for the services to be reconnected I shouldnt think - how long has it been empty? Ask the EA.

The problems you may find is that you buy as seen so if you find that there are things amiss, such as the heating not working or so on then its down to you to sort out. Also, just a tip, if you do get it and are ordering items like furniture etc. treble check that its all progressing ok, as my son just had an order of furniture cancelled without any notice to him as there had been a case of credit card fraud by a previous occupant and the company hadnt bothered to find out that a new owner was moving in. Get your name on the electoral roll as soon as you can after buying the place.

debtfree_wannabe

Thanks for your help. We don't yet have a Mortgage in Principle as until this came along we hadn't been (and still aren't) in a hurry to buy anywhere, this just seemed to be too good an opportunity to pass up.

We told the EA this today, and she (who also happens to be the mortgage advisor there) is going to go through some of our finances with us on Saturday. If we are really keen on the property, they can help us with arranging the mortgage, although they only cover 20 or so different companies. But, as FTB, I think we shall be grateful of any advice they can offer us, although I am aware also of looking elsewhere for the possibility of better offers, but it's a useful start for us.

The property is in East Northamptonshire, and yes, 79k is very very cheap, flats go for more than that here. Which is why I'm conscious that it may be stiff competition, but also a potential good buy for the future. It's also why I don't feel that we can be too cheeky with any offer we make!

hethmar

Id do a bit of research re mortgages before you go to the EA ! Mind you, if they think they are going to make money out of the deal and that they will have control to some extent over the speed of the transaction, that will also be in your favour as far as they are concerned.

debtfree_wannabe

I have done a little bit of shopping around (only basic though) on moneysupermarket, and some banks own mortgage calculator sites. I know though that the results from these can vary wildly once you actually give them more information, but from these, I have some idea of some of the products that could be available to us and at what kind of prices.

hethmar

Thats good, you want to show you have some idea:)

feisty1

ask yr friends/family to refer u to an independent mortgage advisor, as if you want to be one step of the game you should have a DIP in place (decision in principle)

Entertainer

The market has changed obviously, given that prices are falling but when properties are underpriced as you seem to be suggesting, there can be alot of interest and offer prices/ guide prices are meaningless and, in fact, downright misleading. Properties can go to sealed bids with lots of offers way over the guide price. So don't get your hopes up, it could end up as one big wild goose chase.

As I say, this is a completely different time with prices crashing so these normal rules might not apply. Be careful though, today's bargain might be next years market price or lower if prices have fallen another 15/20%.

As to the utilities, this is no big deal getting them reconnected.

mandragora_2

and, in my experience, no charge - you're a different customer, and the companies will want your business - why should you pay for someone else's arrears?