What do you think? A rat?

ajay_182

Hi guys,

I know this has been asked before. But im after peoples opinions really.

Basicallly, Im buying a repo. I know all the legal side about them having to get the best price for the person who got repo'd etc... Anyway, I offered 70k, got accepted about 3 weeks ago. Solicitors and mortgage all going through, I estimate ill be able to complete mid to late next week. But guess what, got a call off the EA's to say a cash buyer has offered 72,500. Hes just sold his house and in a postion to buy and complete within 7 days. Then asked would I be able to up my offer at all! I told him he had no chance and that was that. Now heres the catch, my mortgage is going through with the same EA's, so although my mortgage advisor says she tells them nothing (Of course I dont believe that and thought if i went with them it might help me get the house) She knows I can afford a few grand more than the 70k. This may have something to do with this mysterious cash buyer.

Heres my questions.

Who smells a dirty EA rat?
If you had 'cash', would you have offered 2.5k more, or offered the same as me, or even lower bearing in mind you would know what I had offered? EA says its his first bid.
Im going to see my mortgage advisor 2mora, do i tell both her and the EA's to go Cook themselves, or would you up my offer of around the 1k mark and see what they do?
Oh, im a FTB with 20% deposit by the way.

I know no-one will know the correct answers, but a general chit chat on it may help me figure it out. Cheers guys.

silvercar

Don't offer more unless you think the property is worth more.

ajay_182

I think it is worth more, im no expert. But it was on for 75k. The EA may well be on the level and this may all be true. But im not been taken for a mug. And i dont want to be brought into a bidding war.

m_13

We offered on a repossession. We then started the mortage application and were told that somebody had offered more. We were asked if wanted to bid higher but said no, we didn't want to get into a bidding war. A week later we got another call saying that the higher bidder had pulled out and would we like to resubmit our offer. We then got it in writing that had until 20th February to exchange. On the 20th we were told there were two higher offers made but they had an agreement with us to wait until the 20th before considering them.

You could call the EA's bluff and say that you are prepared to walk away and see if they panic when they might not have any buyers but you'd have to be prepared to actually walk away.

If there is another buyer and they are impetuous and offered at the drop of a hat then they might just as easily pull out again when they see something else they like. Our higher bidder was buying for their dad but when he saw the property he didn't like it! They may also need to complete in the 7 days and if they can't move that fast, will pull out.

As others have said, unless you feel the property is worth more, then don't bid more!

ciano125

If its on at £75k, then £70k is a good offer, stick to it. If you dont get it, so what, get a different one, its a buyers market and you dont need to get into a bidding war.

If they come back then and say something like "oh the other party has pulled out" say "ok fine, carry on then as we were" and then try and knock them down by £2.5k and see how they like it.

oldone_2

Never ever get into a bidding war. You have shown you are serious by obtaining a mortgage and are ready to complete.This puts you in a strong position compared to the cash buyer, who has to get a survey done, instruct solicitors etc. especially as you are ready to complete middle of next week which is 7 days, exactly the same as the mystery cash buyer.

Tell your mortgage advisor you will not up your offer, and are still able to complete middle of next week. I would also tell her that in order to save you further expenses she must confirm within 24 hours that the property is yours. If she gives a lot of excuses why this is not possible, just stand up,tell her your offer remains for 24 hours, and walk out.

ajay_182

So I have it easy compared to you, lol. To be honest. If someone has manage to sell their house and walk away with 80k cash and the be in a postion with employment and debt to buy a run down FTB house with cash then fair play to em, they obviously have way more luck than me and good on them. Im gonna call their bluff I think till Friday, and may up my offer, but luckily, i havent got attched to the house, so walking away will be a little tough, but ill live. Thanks for the post.

EA's beware. Us buyers are onto you. We trust you as much as we trust a fat kid with a lolly pop. Dont play us for mugs, it WILL back fire on you. Oh, and mr cash buyer, believe me, if this turns out to be true, I have a few tricks up my sleve that may cause you a headache or two, and dont think your offer is what you'll pay. Bullies dont win with me. Just a bit of food for thought.

ajay_182

Thanks ciano, thats the same kind of thinking I have, nice to her someone else say it though.

oldone, a man/woman after my own heart. I like it, get tough with em. The no sh*t attitude has worked wonders for me before.

QTPie

ciano125 wrote: »

If its on at £75k, then £70k is a good offer

Eerrrr, how do you know that? Do you know the actual property that the OP is trying to buy? If not, then you are talking rubbish...

One of the houses in our development was a reposession and up for sale for £389k last Summer. In the end the original owners sorted out their finance and it went back to them... (so didn't sell).

At the same time that repossession was available, one of the neighbouring houses had just sold for £465k. Our house is no under offer to a cash investment buyer (who knows his stuff) for £420k.

So that repossession - at £389k - was a VERY good deal at the time!

You can't just say that an offer just under the asking price is a "really good offer" without having a clue about what the property is actually worth...

QT

ajay_182

I agree QT, no-one knows my local area. However, same houses were going for 110-115k at peak, so although im not getting the steal of the decade, i would say its priced okay. Im not that bothered about getting a great deal, but the right price at this time. People are too greedy sometimes.

patch3228

Good on you for playing it cool :cool:

Perhaps get a mate to ring up EA about that same property and see if any other agent can confirm this 'story'

Personally this stench is rotten to me and I would walk away. If the EA happened to call me back a week or so later - the offered price would be taking a pounding

I would not trust an EA at all