My first repo?

alexlyne

I read your thread before starting this one, was interesting what eas may or may not be doing!
I do wonder if the offer on this house already published is a real one, or just one to stop silly offers going in... but otherwise, we'll go in with what we can afford, as there is no temptation to increase it if the ea comes back to ask for a higher bid. We don't need the house, so fate (or the ea) will decide if we get it!

alexlyne

We had a meeting with the eas fa last night. He basically thought what we wanted to do was risky, but do-able. Overall though, he thinks it much better if we wait a little longer, therefore saving a bit more, and sell the existing property at teh same time, which should release some (not a lot) of equity in order to up our deposit to 15% where there are much better offers around, plus the benefit of porting the remainder of the fixed term on the current house (whish is 18mth)

We are still going to look at the house tomorrow.. just in case.

Oooh, and I downloaded the property bee widget, absolutely fantastic - many thanks for providing it in another thread (ms poppy sarah, was it you?)
This gives buyers a much stronger position. I found with this that homes in the area we are looking in have been on the market since at least june last year, and prices have been reduced by 10% or so... gives us ideas of trying to knock at least another 10% off - some of these guys will be getting desparate now, especially as they have probably declined offers in the past to find that now they wish they hadn't. We can get a decent property then which'll be more affordable.

One thought on repos though... as all the utilities have been disconnected, do you have to pay the suppliers to reconnect? an extra charge to consider?

poppysarah

Connection is usuallu free unless it's been over a year in which case there may be a charge... Don't think there's a charge if you need a meter putting back in.

If you've not sold your house you're mad to think about buying a repo! Unless you have pots of money lay about.

m_13

It depends how they've been disconnected. There are several companies who spend their time 'mothballing' repossessed properties including boarding up or putting metal shutters on. Electricity is usually switched off at the fuse board and water drained out of the system completely after turning off at the main stop !!!!. Gas is a different matter. When I asked I was told that Gas is usually capped off which means the pipe is cut and sealed. Obviously reconnecting that would involve a cost but as we bought a repossession without gas we don't have that cost.

We were concerned we would have to pay money to reconnect the electricity and water but we won't. Both services confirmed that it's just a case of starting a new account with them. In both cases they have been disconnected for non-payment but that's no suprise but it's just a ticked box at their end.

The telephone is cut off and BT do charge to reconnect and provide a new number but that would be the case with most purchases not just repossessions.

alexlyne

The FA didn't say we were mad (well, not the actual wording), but I was mostly after information about whether it would be possible... because if you're buying a repo 1. you need to be fast and 2. not have to sell another property in order to finance it.

Pots of money? I keep a spare tenner in the car!

So now we are on plan B, of which I will retain this thread, even though it should now be renamed 'Plan B'. I hva ephoned 2 local eas who are coming round to view my house next week. Looking at prices on rightmove, I think properties are still a bit overvalued in this area (nr Pontypridd), but as we have a 2bed terrace in a lovely village with a by-pass currently under construction, then where we are situated should not fall as quickly as other areas.

So then next question. I read Marcus' sticky on selling houses, and I was intrigued by being able to play eas off each other. Is it possible to say to one that the other offered x% in order to get them to reduce theirs, if the x% was made up? I would think that all eas know the other eas business well enough to know their rates.
I will be going in to try to reduce the fees, especially if they tell me that they will easily sell the house! Checking lock-in periods and negotiating them will also be interesting. I'm a typical Englishman, and find it hard to negotiate properly.. hopefully the thought of saving £00s or more will help :-)