Buying a Repossession

davidb881

Hello,
I am in the process of buying repossession, but some things are bothering me. The house was originally on the market for £148,950. Then after about 2 months the price was reduced to £136,950, just after this we offered £134,000 on the property, which was accepted. After exactly one week I received a call from the EA telling me that another offer had been received of £135,500. The management company who is selling the property for the bank asked us both to put in best and final offers (which I know is crap, because best price wins until exchange). Now, I did not want to lose the property, I like it and love the location. Therefore, I decided to put in a bid that would ward of the other potential buyer and basically anyone else as well, but without going mad. Therefore, I offered £140,000; needless to say my offer was again enough, which at the time felt great. However, I am now about 2 weeks away from exchange, but I am worried whether I was had. The EA did tell me who the others where, a property investment company, I was even told the name, but something does not feel right. (But I am a bit of a pessimist at the best of times, but you never know)

Therefore, is it possible to ask for written confirmation of the other offer? Does anyone think I have paid too much? LOL, Can I lower my offer even though it has been accepted? (I know that’s probably daft). I guess I am looking for reassurance any ones thoughts would be great. Also, I have only had very sketchy reports, from the EA as to why the property was repossessed. Can anyone suggest how I might be able to get more clarity? One thing is bothering me; the property is nice in a good location, which over the two month period received good interest. Why did the previous owner not just try to sell it normally before it was too late? Again, how can I find this out?

Thanks

MyLastFiver

They have used the threat of being gazumped (real or fabricated) to get you to raise your offer.

Gazumping makes the property market more efficient (not fair, just efficient) because the competitive pressure forces buyers to reveal what the property is really worth to them.

My point is - yes, you may have been had, but all that happened is you revealed that you were prepared to pay £140K for the house.

In turn, should you wish, you could go to them on the day before exchange and gazunder them (ie lower your offer), therefore forcing them to reveal what they are prepared to accept.

As for your other questions about the propery and its transaction history, if these things are important to you shouldn't you have researched them before you offered £140000 of your hard-earned to buy the house?

My advice to you is not to torture yourself about it. The house is worth £140K to you, and you are due to exchange at that price. Congratulations in anticipation of your purchase. Enjoy your property.

davidb881

Hi, Thanks.

You mentioned gazunder. I have instructed an additional surveyor (all qualified and above board) to look at the property to do a home buyers report as well as my mortgage providers, mortgage valuation. I know from my own inspections, that the place needs a bit of work and I was going to get quotes before exchange. Depending on what’s found and the cost, I guess re-negotiating the price when close to exchange would be reasonable, whilst maintaining my more the fair offer until close to exchange… What do you think, worth a try? They can only say no I guess. They would not just drop me, would they? After all they would only be a couple of weeks away from getting their money?