Very Confused - New Build Query

Lmo_2

Hi There

Sorry its a bit long but I have been keeping my eye on a new build property. (no link so can't show it). It is a small site and all properties are built and completed. They only have 2 3 bedroomed semi's left. They are on the market for £175k and I placed a cash offer of £140k in June 2008 for one of the houses. It was declined. I have placed the same offer in a couple of other times since as the properties are still available but yet again declined. I spoke to the agent last week who informed me that the properties are now owned by the bank and the lowest they could go to was £150k as they would be selling at a loss at £140k. I explained that as it is a cash offer and the properties have been empty for a long time then surely it must be costing the bank more to have the houses sitting empty. The agent agreed but said that they had 2 higher offers on the properties but they both had properties to sell. I argued that they could be waiting months if not years before they would be able to complete. The agent agreed that I was in a much stronger position and questioned where and how I had £140k cash and if I could move straight away, which I could. The call finished with they could move at £150k but no less as the bank would rather moth ball the properties than sell at a loss.

I'm really confused, I thought banks wanted to get back as much as they could as quickly as possible? Especially in these desperate times. Surely leaving the properities empty is costing them more money. Its only £10k difference why can't they go for it? Not quite sure what to do now. I don't believe they are worth £150k and I would have to get a mortgage for the £10k difference which I explained to the agent that I did not want to do as I wanted to be mortgage free. Think I am going to bide my time and see what happens but bit concerned though that they decide to moth ball them!! I thought they only did that if they couldn't find a buyer? They have one right here. Its so frustrating.

Any advice on what to do welcomed.

Premier_2

Banks are expected to get back the best deal for the debtor.

However, have you noticed how low interest rates are? Some people are paying less than 2% now on their mortgage. On £150k that represents just £3k per year. If they can sell the property in say 3 years time for 10k more they will still be getting the best deal. And of course they might sell sooner for that money.

You can't force a seller to sell less than they are prepared top sell at. If you want the property, you know how much they want. If you don't think it's worth it, walk away and buy a place that you think is worth the money.

I suggest what you really find frustrating is that you can't find someone to give away a valuable asset for peanuts.

WillowCat

Lmo wrote: »

Hi There

Its only £10k difference why can't they go for it?

There's your answer. If you feel it's only £10k then why don't you find it?

Or is it only £10k to the other party, but not to you?

zone

The banks play much harder than developers. So it sounds like they wont give in, you have will to stretch to £150k. Try £145k but still unlikely i suppose.