What offer to place on a repo?

Saver1971

Hi All,

I'm a first time buyer with a 55k deposit.

A repossession has recently come to the market at 250K that I'm interested in and I was wondering what offer I should make.

My gut instinct was to go in at 200 and then place incremental bids of 2.5k up to 210, which is what I'm prepared to pay for this particular property.

Does anyone have any advice?

Cheers in advance, Saver1971

QTPie

Saver1971 wrote: »

Hi All,

I'm a first time buyer with a 55k deposit.

A repossession has recently come to the market that I'm interested in and I was wondering what offer I should make.

My gut instinct was to go in at 200 and then place incremental bids of 2.5k up to 210, which is what I'm prepared to pay for this particular property.

Does anyone have any advice?

Cheers in advance, Saver1971

Eerrrrrr, without having a clue what the asking price is or what the property might be worth, that could be tough...

QT

Saver1971

That's very embarrassing! :rolleyes:

The property is advertised at 250K.

QTPie

Saver1971 wrote: »

That's very embarrassing! :rolleyes:

The property is advertised at 250K.

Any idea what similar properties (in the same area) have sold for recently?

Repos are normally priced pretty well to sell....

I don't really think that 2.5k increments are doing to do too much. You could start at £200k and see where that gets you, then maybe raise £5k increments. If it is priced really well to sell, then £210k may still be too low.

You understand the "contract race" (and associated risks) involved with repos don't you? I.e. even if you offer is accepted, the property stays on the market (and continues to be advertised) until exchange... So you could "bag a bargain" or you could be gazumped even after the survey...

QT

rogerdodger007

Are you in the best possible position you can be i.e. have you a mortgage ready arranged and a solicitor selected? I agree with QT - if you are going for a repo, move quickly.

QTPie

rogerdodger007 wrote: »

Are you in the best possible position you can be i.e. have you a mortgage ready arranged and a solicitor selected? I agree with QT - if you are going for a repo, move quickly.

Yes, I think that you often only have something like 28 days (or not much more) from when you offer to completion...

QT

Saver1971

Thanks for the replies...

Similar propertys in the area go for closer to 300K however the property is in a state of minor external disrepair and is borded up.

I'm familiar with the process of buying a repo but not in the current climate...

I was just wondering how cheeky my first offer should be but my obvious concern is that it's been priced accurately in the first place...

ajay_182

Get solicitors and lenders in place before you offer and then you can say move quickly and mean it. Be on top of things as repo's are like a rollercoaster ride!

poppysarah

Have a second viewing ... if you haven't already.

QTPie

Saver1971 wrote: »

Thanks for the replies...

Similar propertys in the area go for closer to 300K however the property is in a state of minor external disrepair and is borded up.

I'm familiar with the process of buying a repo but not in the current climate...

I was just wondering how cheeky my first offer should be but my obvious concern is that it's been priced accurately in the first place...

If similar properties have gone for (and I mean "sold") £300k recently, then this house sounds very "priced to sell". How long has it been on the market for? If it hasn't been on long, then I think that even £210k could be VERY "optimistic". If I was you (and had a max budget of £210k), would probably go in at £200k and then raise it to "£210k - last an final offer", but I wouldn't hold out much hope. You will be VERY lucky if they accept that and the chances of someone coming in and offering more (gazumping you) are incredibly high (since the house sounds like an absolute bargain at £210k...).

Good luck, but let us know how you get on please.
QT